The Check Clearing for the 21st Century Act (Check 21) was signed into law on became effective on October 28, 2004. The law facilitates check truncation by creating a new negotiable instrument called a substitute check, which would permit banks to truncate original checks, to process check information electronically, and to deliver substitute checks to banks. Per the Check 21 Act; a substitute check is the legal equivalent of the original.
Processing checks electronically does require equipment capable of check imaging by Check 21 Act’s image requirements. Some POS Terminals already have the ability to electronically process checks to this quality requirement. The Digital Check Teller Scan 215 and Teller Scan 230-65, pictured below, are devices expressly made for check imaging.
With the Teller Scan 215 and Teller Scan 230-65 you can quickly and conveniently convert paper checks into secure electronic documents.
Converting checks electronically provides multiple benefits to the business owner or financial institution. Some of the benefits include:
Streamlining business operations while saving time and money: - no more daily trips to the bank to deposit checks. This saves you time and money. Scan checks and make deposits electronically can happen from any back office computer. Scanning and uploading checks takes a lot less time than processing manual check batch deposits. Each check takes seconds to scan and upload – the Teller Scan can process 100 checks per minute.
Faster funding – a business can scan checks today and have funds within 48 - 72 hours.
Faster returned item notification – When manually depositing paper checks, a business can wait 7-10 days to have NSF checks returned in the mail. Using Check 21 services, they are notified of return checks within 48 - 72 hours.
Improved research and reconciliation capabilities – with faster notice of NSF items, businesses can begin the collection process earlier. The amount of time between the NSF and the collection efforts is a key determinant industry wide on likelihood of collection. The sooner the better…ask any collection agency.
Storage & logistics – after 14 days, you can destroy the original paper checks. All check images are stored on secure severs and are accessible 24 hours a day.
Easy set up - no integration and no expensive software to buy.
Easy to use – processing checks electronically is as simple as feed, point, and click.
Security – processing checks is as secure as online banking.
The Check Clearing for the 21st Century Act (Check 21) was signed into law on became effective on October 28, 2004. Read more >>
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