Check truncation

Check truncation. To process payments faster and more efficiently, many banks no longer transport paper checks, but replace them with digital images -- called substitute checks -- that can be transferred electronically, in a system called check truncation.

When you receive your account statements, the bank may send you substitute checks in place of cancelled checks, each formatted on a separate piece of paper, with the words "This is a legal copy of your check" appearing next to the image.

Most banks destroy original checks once they've archived the substitutes. However, many banks send out either a line item statement or an image statement with photocopies of multiple cancelled checks on each page.

If you need to verify a payment, you can request a substitute check from your bank. There may be a fee for this service.