Substitute check


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Substitute Check

A digital image of the front and back of a check with the words "this is a legal copy of your check" appearing next to the image. A substitute check can be transferred electronically, while a regular check cannot. This can expedite the payment process of a check; that is, it reduces the amount of time it takes for the check to clear. Like regular checks, substitute checks can be used as proof that payment was made. Substitute checks are normally kept on file at the bank where they were deposited, but an account holder can usually receive a copy for a fee. A substitute check is also called an image replacement document.

Substitute check.

Substitute checks are digital copies of the fronts and backs of paper checks that provide the same legal protections and obligations as the originals, including serving as proof of payment.

Each check is formatted on a separate piece of paper a little larger than the original with the words "This is a legal copy of your check� appearing next to the image.

Using digital copies, which can be transmitted electronically, allows banks to process payments faster and more efficiently than they could when paper checks had to be routed through the check clearing system. Most banks destroy original checks once they've archived the substitutes, which means that you probably no longer receive cancelled checks with your bank statement.

Your bank may send you substitute checks but is more likely to provide either a line item statement or an image statement that has photocopies of the fronts and backs of cancelled checks grouped on a page. These are not substitute checks, although they can often be used as proof of payment.

If you need an actual copy of a substitute check, you can request it from your bank. However, there may be a fee.

References in periodicals archive ?
If the substitute check meets the Act's requirements, then it is the legal equivalent of the original paper check.
A substitute check is a paper reproduction of the original check that contains an image of the front and back of the original check and can be processed just like the original check.
The proposed CTA would facilitate check truncation by creating a negotiable instrument called a substitute check.
Check 21, which encourages the use of technology to enhance the check payment system, does not validate check image exchange, but rather governs only the use of a new paper document, the substitute check.
Under its guidelines, a digitized image of a check, also known as a substitute check, is the legal equivalent of an original item.
CBS specializes in Check 21 solutions, including image import, image cash letter creation, substitute check creation, image quality assurance and advanced sort pattern logic.
Also provided are substitute check printing, cashletter reporting, image quality assurance (IQA), Data Treasury (DTC) Patent License coverage and image based research tools.
Enacted on October 28, 2004, the Check Clearing for the 21st Century Act (Check 21) allowed a digital image, or substitute check, to legally replace the original paper check.
Contract awarded for Deokjeong-esque road between the Pentagon substitute check packaging facilities installation work
As paying banks realized that it would be cheaper for them to receive and pay the electronic image rather than the paper substitute check, now almost all checks are received and paid from the delivered electronic image.
In rare instances where the IRS demands more than the copy of the canceled check included in the bank statement, taxpayers can request a substitute check from the bank.
91) The substitute check option facilitated check truncation, one of the legislature's stated purposes in enacting Check 21, by enabling banks that adopted ECP to still present checks to those that had not adopted the technology.