Check clearing

Check clearing

The movement of a check from the depository institution at which it was deposited back to the institution on which it was written; the movement of funds in the opposite direction and the corresponding credit and debit to the involved accounts. The Federal Reserve operates a nationwide check-clearing system.

Check Clearing

The process in which a bank collects the funds on a check deposit from the issuing institution. Check clearing involves the bank in which the check was deposited mailing the check to the issuing bank. The issuing bank then credits the deposit bank the funds on the check, assuming the check writer had the funds in his/her account. The deposit bank in turn credits the individual account into which the check was deposited. In the United States, the Federal Reserve operates a national check clearing system to expedite the process. See also: Check hold.
References in periodicals archive ?
The check image goes to the same interbank check clearing system," Keraine said.
For check clearing, the operator is the Philippine Clearing House Corporation; for ATM cards, the ATM networks; and for credit cards, the credit card companies.
The report provides estimates of payments fraud totals and rates for payments processed over general-purpose credit and debit card networks, including non-prepaid and prepaid debit card networks, the automated clearinghouse (ACH) transfer system, and the check clearing system.
ProgressSoft also demonstrated its latest advancements in electronic check clearing including the Electronic Check Issuing solution, Prompt e-Check, which allows customers to issue an e-check anytime, and anywhere; and the Mobile Remote Check Deposit Capture, Prompt mRDC, which allows customers to deposit checks directly into their accounts using their smart phones.
Plus, a credit union COO in Wisconsin was appointed to the board of the Electronic Check Clearing House Organization.
real-time gross settlement and mechanized check clearing system) in January 2016, the Financial Inclusion Road Map in February 2015, the establishment of the intra-governmental Banking Sector Financial Reporting Implementation Committee, and the publication of the Financial Sector Development Strategy.
The Federal Reserve operates one of the largest interbank ACH and check clearing systems in the country based out of the Atlanta retail payments office.
In the U.S., one result of the September 11th event was that Congress, in 2003, passed legislation known as Check 21 (Check Clearing for the 21st Century Act) that permitted a printed copy of the digital image of a check (a "substitute check") to have the same legal force as the original item.
Since 2003, when Congress passed the Check Clearing for the 21st Century Act (commonly known as Check 21), the U.S.
"Limiting cash withdrawal and check clearing beyond [P100,000] may disrupt normal business and commercial transactions in the Philippines," according to the BSP as it objected to the new banking rule.
"BancorpSouth leads the nation in adapting technology for the check clearing for the 21st Century Act, which involves creating digital versions of original checks known as check truncation," Rollins said.
The bank can chose from one or more of many check clearing organizations (Table 1, second column).