A new law is changing the way checks are cleared: Check Clearing for the 21st Century Act,
Check 21 for short. The Act was signed into law on October 28, 2003 and will go into effect
on October 28, 2004. Check 21 is intended to dramatically improve the overall efficiency of
the country’s payment system.
Currently paper checks must be physically transported between financial institutions before they can
be cleared- whether it’s across town or across the country. This procedure is expensive, time
consuming, and subject to weather, mechanical breakdowns and even traffic jams. Check 21 makes it
legal for financial institutions to accept a digital image of your original check.
I would like more information on how Check 21 will affect:
Consumers
Businesses
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