 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
What is Check 21/CPA? Check 21 is a law which took effect on October 28, 2004. This law allows credit unions, banks and processors to truncate checks earlier and more often in the check clearing process. Truncate means to remove an original paper check from the check process and create a substitute electronic check in its place. It also allows all U.S. financial institutions to start the process of substituting paper checks with electronic checks at any point during the check collection process. While Check 21 will significantly speed up the handling and collection of checks, the potential for check fraud losses is nearly certain as the conversion process destroys the evidence of fraud in most cases. What does Check 21 mean for check providers?
The key for check providers is the continued use of check fraud prevention. Industry experts are recommending, companies and individuals use high security checks. Altec offers a minimum of 10 security features on our MICR and preprinted laser and continuous checks Check 21 does not provide guidelines or requirements for the printing or creation of the original check. However, documents must be"image friendly in order for the banks to comply with Check 21. Requirements for image compliant documents are outlined in ANSI X9.7, X 9.90. Altec is a forward thinking company and realized the need early on to be image compliant. Our factories utilize the RDM Image Qualifier IQ-X97 to check for image compliance. Our standard checks have been compliant since 2001 and we are committed to working with our customers to ensure custom checks are image compliant as well! Additional Check 21 Law Resources:
Contact us today to learn how Altec can support your Check 21 initiatives. |
