Introducing the Benefits of Check 21
On October 28th of 2004, a new federal law called “The check Clearing for the 21st Century Act,” commonly known as Check 21, went into effect. Check 21 is spurring the use of new technologies that is improving the efficiency and reducing the cost of the nation’s check collection system, resulting in better services to credit union members.
As the system used to stand, a physical check had to be transported to several different destinations around the country before it could be completely processed. Check 21 is eliminating this time-consuming process. Checks are now processed electronically and sent where they need to go.
Some additional benefits of Check 21 include:
- Faster clearing of checks, resulting in a more accurate
balance
- Quicker issue resolution, as electronic check images are
easier to access and reference
- Increased security for your check information, since
physical transportation is no longer necessary
- Faster detection of fraud as a result of quicker processing
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How will this affect me and the checks I write?
The bottom line is that you will not have to do anything differently with regard to your checking account. These changes will seem transparent if you continue to accurately maintain your checking account records and review your statements on a timely basis.
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