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Check 21

   Also found in: Wikipedia 0.01 sec.
Check 21

Shorthand for the Check Clearing for the 21st Century Act; legislation that allows faster processing of checks by financial institutions by allowing them to process images rather than physical pieces of paper. The law also allows the creation of substitute checks that are processed immediately.



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Check 21 facilitated electronic check processing by allowing banks to use electronic imaging technology for collection and create substitute checks from those images for delivery to banks that do not accept checks electronically.
G7's efforts mesh ideally with the Check Clearing Act for the 21st Century (Federal Law Check 21 or Check 21), which became effective in 2004.
Many financial institutions are holding on to their paper sorters because they haven't been able to make the leap into the Check 21 paperless system.
 
 
 
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