Check Clearing for the 21st Century

The Check Clearing for the 21st Century Act, or "Check 21," is a new federal law that will revolutionize the check-clearing process by encouraging image based processing. Effective on October 28, 2004, Check 21 will produce significant changes in the way that checks are processed in the United States.

Luckily, Check 21 is not all that complicated. It really all comes down to converting an original check into a new document called a "substitute check." This will allow for a more efficient and cost-effective means of clearing checks. As a result, the check collection and return processes will be streamlined, and billions of checks will not have to be physically transported around the country.

Please review some frequently asked questions to learn more about Check 21.