Check 21 — How It Affects You

Changes in Check Processing.
Effective October 28, 2004 the Check clearing for 21st Century Act — or "Check 21" will bring the nation's check payment system into the digital age and allow consumers to benefit from better and faster financial services. Check 21 is a new law that allows banks, credit unions, and processors to "truncate" checks earlier in the check process and more often.

How Will Check 21 Benefit You?

• Detects fraud faster — Since check clearing is faster, fraud can be detected and investigated sooner which brings about quicker resolution.
• Faster check clearing — You get a more accurate picture of your account balance.
• Quicker response — Check images can be accessed faster to resolve questions.
• More secure check information — Checks do not have to be physically transported via truck, train or plane.

How? With a Substitute Check…
Check 21 allows a new approach — it makes legal a Substitute Check which is a digital picture of your original check (showing both the front and back) which can be processed electronically.

• A substitute check is the legal equivalent of your original for all purposes including requirements of state and federal law.
• The substitute check will feature, in bold print, a legend that states "this is a legal copy of your check — you can use it the same way you can use the original check".
• A substitute check provides legal proof that you made a payment.
• You may receive a substitute check when you request a copy of a check.

Important Note
Please remember, since these changes will drastically reduce the amount of time is takes to move money from your account to pay those who receive your checks, you will need to have sufficient funds in your account to cover the payment at the time you write the check.

Expedited Recredit Procedures
Consumers receiving a substitute check may make an expedited recredit claim if a substitute check was improperly charged and the consumer suffered a loss.

• The financial institution generally has 10 business days to complete investigation of the claim and to recredit the consumer's account up to $2500 per check, pending completion of the investigation.
• Exceptions are made for new accounts, accounts repeatedly overdrawn and suspicion of fraud.
• All Funds must be recredited within 45 calendar days if the claim still can not be validated.

 

For more information on Check 21 click here.
Please note that by clicking on any the link above you will enter a privately owned website created, operated and maintained by a private business or organization.  Brazos Valley Bank takes no responsibility for any products or services offered by this site.  The privacy policy of Brazos Valley Bank does not apply to any other website you visit.  We recommend you review that website's privacy policy.

Check 21 — How It Affects You

Changes in Check Processing.
Effective October 28, 2004 the Check clearing for 21st Century Act — or "Check 21" will bring the nation's check payment system into the digital age and allow consumers to benefit from better and faster financial services. Check 21 is a new law that allows banks, credit unions, and processors to "truncate" checks earlier in the check process and more often.

How Will Check 21 Benefit You?

• Detects fraud faster — Since check clearing is faster, fraud can be detected and investigated sooner which brings about quicker resolution.
• Faster check clearing — You get a more accurate picture of your account balance.
• Quicker response — Check images can be accessed faster to resolve questions.
• More secure check information — Checks do not have to be physically transported via truck, train or plane.

How? With a Substitute Check…
Check 21 allows a new approach — it makes legal a Substitute Check which is a digital picture of your original check (showing both the front and back) which can be processed electronically.

• A substitute check is the legal equivalent of your original for all purposes including requirements of state and federal law.
• The substitute check will feature, in bold print, a legend that states "this is a legal copy of your check — you can use it the same way you can use the original check".
• A substitute check provides legal proof that you made a payment.
• You may receive a substitute check when you request a copy of a check.

Important Note
Please remember, since these changes will drastically reduce the amount of time is takes to move money from your account to pay those who receive your checks, you will need to have sufficient funds in your account to cover the payment at the time you write the check.

Expedited Recredit Procedures
Consumers receiving a substitute check may make an expedited recredit claim if a substitute check was improperly charged and the consumer suffered a loss.

• The financial institution generally has 10 business days to complete investigation of the claim and to recredit the consumer's account up to $2500 per check, pending completion of the investigation.
• Exceptions are made for new accounts, accounts repeatedly overdrawn and suspicion of fraud.
• All Funds must be recredited within 45 calendar days if the claim still can not be validated.

 

For more information on Check 21 click here.
Please note that by clicking on any the link above you will enter a privately owned website created, operated and maintained by a private business or organization.  Brazos Valley Bank takes no responsibility for any products or services offered by this site.  The privacy policy of Brazos Valley Bank does not apply to any other website you visit.  We recommend you review that website's privacy policy.