Starting late September, Securityplus FCU implemented Check 21, which is a type of payment document called a "substitute check" that is used for clearing and settlement.
The Check Clearing for the 21st Century Act permits quicker processing of checks by allowing the receiving financial institutions to treat an electronic image the same as the check itself. This new ability is called Check 21.
With Check 21, credit unions can now fully implement the efficiency of electronic transmission by taking a picture of the check or creating a legal "substitute check", then transferring it electronically rather than transporting it via truck, train or plane. This new efficiency has many significant benefits:
*Checks will clear faster
*Check fraud will decrease
*Security will increase
*Check processing will cost less
Here is important information on what you can expect:
1. Members who request or receive an original check can expect to receive substitute checks. The substitute check will contain an image of the original check and will bear the legend: "This is a legal copy of your check. You can use it in the same way you would use the original check".
2. Substitute checks are required to accurately represent all the information
on the front and back of the original check.
3. Substitute checks are the legal equivalent of an original check for
all purposes, including any provision of federal or state law.
4. Members who believe a substitute check was not properly processed will
be entitled to a credit for the amount of the check pending an investigation.
5. Check 21 will significantly reduce the amount of time required to move
money out of your account and pay recipients of your checks. Your checks
will clear faster so you will need to keep closer tabs on your accounts
to make sure funds are available on time.
With Check 21 comes many changes but Securityplus FCU is well prepared, and we are here to help smooth the way for you!
Disclosure: Substitute Checks and Your Rights -
Important Information About Your Checking Account
