Check 21 Speeds Checking

Starting Oct. 28, 2004, the Check Clearing for the 21st Century Act (Check 21) will help financial institutions send checks electronically to each other by converting paper checks to electronic files. This will cut the time it takes a check to clear from days to hours, so you may need to change your checking habits.

Because of Check 21, you also may receive some checks or check copies from your credit union that look a little different. These are “substitute checks,” and they’re required to meet strict standards to qualify as the legal equivalent of the original check. You’ll receive substitute checks instead of originals if the check has been converted to an electronic file at some point during the payments process.

Times you might receive a substitute check include:
· You request a copy of a check.
· You deposit someone’s check, and it turns out to be a bad check.
· Your credit union normally returns paid original checks you’ve written.

A substitute check will look like the check you’ve written, but will be somewhat smaller in size and on different paper stock. The front and back will contain all the information that appeared on the original check.

You probably won’t see a substitute check often. But your check frequently may be converted into an electronic file and speed through the payments process, so make sure you have funds in your account when you write a check.

Copyright 2004 Credit Union National Association Inc. Information subject to change without notice. For use with members of a single credit union. All other rights reserved.