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About Substitute Checks
Check 21 enables financial institutions to speed up check processing by creating and transmitting electronic images of checks known as "substitute checks." A substitute check is a paper copy of the front and back of the original check created from a scanned image. It is slightly larger than the original check, and contains the following information:
- An image of the front and back of the check
- All the information from the original check
- Information on how the check was deposited
- A statement indicating the image is the legal copy of the original check
Here’s how it works:
Once a check is deposited, financial institutions can create an electronic image of the check and transmit the image called a substitute check to another financial institution for processing. Check 21 provides the rules and guidelines for the use of substitute checks and provides protections to those who may receive a substitute check.
Substitute checks can be used for record keeping or proof of payment the same way as the original check. Check 21 provides a special refund procedure, if people receive a substitute check and there is an issue or error with the account. Each financial institution will provide information on how this new refund procedures works.
Here’s an example that might be seen in statements. In most cases, the actual image of the check design will only be shown in black and white to make it easier to read the written portions of the check after the check imaging process.
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