The Check Clearing for the 21st Century Act (or Check 21 Act) is a United States federal law, Pub.L. 108-100, that was enacted on October 28, 2003 by the 108th Congress. The Check 21 Act took effect one year later on October 28, 2004. The law allows the recipient of the original paper check to create a digital version of the original check (called a "substitute check"), thereby eliminating the need for further handling of the physical document.
Consumers are most likely to see the effects of this act when they notice that certain checks (or image of) are no longer being returned to them with their monthly statement, even though other checks are still being returned. Another side effect of the law is that it is now legal for anyone to use a computer scanner or mobile phone to capture images of checks and deposit them electronically, a process known as remote deposit.
Check 21 is not subject to ACH (Automated Clearing House) rules, therefore transactions are not subject to NACHA (The Electronic Payments Association) rules, regulations, fees and fines.
Read more about Check 21 Act: Truncation, Patents
Famous quotes containing the words check and/or act:
“If he had been sent to check out Bluebeard’s castle, he would have come back with a glowing report about the admirable condition of the cutlery.”
—Mary McGrory (b. 1918)
“In my dealing with my child, my Latin and Greek, my accomplishments and my money stead me nothing; but as much soul as I have avails. If I am wilful, he sets his will against mine, one for one, and leaves me, if I please, the degradation of beating him by my superiority of strength. But if I renounce my will, and act for the soul, setting that up as umpire between us two, out of his young eyes looks the same soul; he reveres and loves with me.”
—Ralph Waldo Emerson (1803–1882)