Check 21 Frequently Asked Questions

If my check is scanned, what happens to my original check?

The original paper check is removed from the check collection or return process and an electronic image of the item is transmitted in lieu of the original item. The original check is then destroyed.

Can I obtain a copy of my check and will there be a fee for the check copy?

You will be able to receive a special kind of copy of the check called a "substitute check". The substitute check will be treated the same as the original check under state and federal law. There may be a fee to re-produce a copy of a substitute check, just as there may be a fee to order past copies of your monthly statements.

Will the substitute check look just like my original check?

See our sample. This document will contain the scanned image of the front and back of your check along with some legal encoding to verify its authenticity.

What will happen to my original check after the imaging process?

The institution that converts your check to an electronic transaction will destroy the check.

What happens if there is an error when converting to a substitute check?

If there is an error relating to a substitute check, there is a process by which you will be able to get a re-credit for any disputed funds within 10 days (up to $2,500 for each disputed check). This will give the institution time to resolve the matter, but allow you access to your funds during that time. The consumer re-credit rights and procedures will be explained in a notice provided to existing members and to new account members.

How long will it take for my check to clear under the Check 21 Act?

Currently checks take an average of 1.2 days to clear. This is based on 80% of checks being cleared in one day, and the remaining 20% being cleared the second day – for instance when checks have to be transported across the country. Many industry experts predict that same-day check clearing will be common in a post-Check 21 environment.

If my check clears faster, will I gain access to my deposits sooner?

No. The legislation does not necessarily affect the hold times placed on deposited items. However, it does mean that the actual funds will make their way through the system more quickly, and this will reduce the time that you'll wait for checks to clear.

What if I want to get my original checks back? Can I ‘opt-out’ of Check 21?

The Check 21 Act mandates that financial institutions accept substitute checks in lieu of the original check. So individuals, or credit unions for that matter, can’t choose not to participate.

How soon after the law goes into effect will I start seeing substitute checks?

Some financial institutions are planning to participate in image exchange pilot programs in early-to-mid 2004 so that they will be prepared to operate in an image environment when the law goes into effect on October 28, 2004. No one really knows how many financial institutions will be early adopters of the new legislation.

What if I have a legal case and I need to present a paid check?

Under Check 21, a substitute check is the legal equivalent of a check and may be used for any purpose that a cancelled check could be used for, including proving payment.

Is there a way to tell which bank converted my check to a substitute check?

Financial institutions are required to identify themselves as the "reconverting financial institution" (the one that created the substitute check) to preserve any previous financial institution identifications. This will either be indicated on the substitute check or may be obtained by contacting your financial institution.

Are there any web sites that provide more information on Check 21?

• BAI's Check 21 Resource Center
  This is the Bank Administration Institute (BAI)’s website devoted to feature articles, publications, news alerts, press releases, presentations, white papers, etc., on the topic of Check 21.

• Federal Reserve Check 21 Site
  This is the Federal Reserve Bank’s public location for Check 21 developments.

• ECCHO
  The Electronic Check Clearing House Organization provides several Check 21 documents, including the history of the act and various regulations.