| What Check 21 Means to Your Business? | | | | times, business owners can expect checks to clear in |
| What is Check 21? | | | | days or even minutes. "Floating" your checks for one |
| Check 21 or "The Check Clearing for the 21st Century | | | | or two days can result in disaster: |
| Act" was passed into law on October 28, 2003, and | | | | More fees in bounced check charges |
| effective on October 28, 2004. Check 21 creates a | | | | Negative image on your credit rating |
| new digital product called the substitute check. The | | | | Embarrassment in dealing with suppliers or customers |
| substitute check has a paper reproduction of the | | | | over bad checks |
| original check's image from the front and back. | | | | To offset the quicker processing time, make certain |
| The new Check 21 act means an improvement in | | | | the cash is in your account before you write a check. |
| efficiency for the banking system. No more shipping | | | | Also, ensure you have adequate account overdraft |
| original checks around the country. It has yet to be | | | | coverage until you adjust to the new system. Don't |
| seen if the added savings for banks will be passed off | | | | expect to get your money faster. The law doesn't |
| to consumers. | | | | amend the hold times on your account. |
| What Does Check 21 Mean to My Business? | | | | Reduced Fraud: In theory, Check 21 can reduce losses |
| New Proof of Payment: If your business needs to | | | | from check fraud because the electronic check |
| confirm payment from a customer, under the new | | | | processing will help the bank receive and detect |
| Check 21 Act a substitute check is the legal equivalent | | | | fraudulent checks earlier. It doesn't mean you should |
| of the original and acceptable proof. | | | | drop your guard on fraud. Just be aware another |
| The IRS can even accept the new check form as | | | | safeguard is in place. |
| proof of payment. | | | | To learn more about the Check21 services that best |
| Shorter Float Time: The float time is the period | | | | suit the needs of your business, visit us at email us at |
| between the time a check is written and the time it | | | | or contact a representative by calling 1-800-815-4105. |
| clears. With the new efficiency in check processing | | | | |