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Electronic Services
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Check Clearing for the 21st Century Act (Check 21) |
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In October 2004, the way
banks process checks changed when the Check Clearing for the 21st Century Act
(Check 21) took effect. Check 21 includes a set of new industry standards that
allow banks to process checks more efficiently.
We have created this page to answer your questions about those strange-looking
checks and to explain other changes you may have noticed since Check 21
officially took effect.
What is Check 21?
The main purpose of the Check Clearing for the 21st Century Act (Check 21) is to
make the U.S. banking system more efficient by eliminating the need to
physically transport paper checks between banks for payment.
Banks are allowed to process checks electronically by creating digital images of
original checks. This shortens the check payment cycle and makes the process
more efficient.
What is a Substitute Check/IRD?
An IRD, or substitute check, is a copy of an original check generated from an
electronic image that may be used in the check payment process.
Once checks are converted into IRDs, they are still considered to be checks and
have the same legal standing as the original checks you write.
How can I learn more about Check 21?
First Community Bank is committed to helping you understand Check 21 and
answering any questions you have. If you have any questions about how Check 21
will affect your First Community bank accounts, please
contact us. |
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Terms & Conditions
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