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What is Check 21/CPA? Check 21 is a new law effective October 28, 2004 . This law allows credit unions, banks and processors to "truncate" checks earlier in the check clearing process and more often. Truncate means to remove an original paper check from the check process and in its place make a substitute electronic check. 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 in 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 from a defensive position, companies and individuals should be encouraged to use high security checks. Altec offers a minimum of 10 security features on our MICR and pre-printed Laser & 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 being proactive realized the need to be image compliant. We reviewed the latest ANSI specifications back in 2001. 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 ensuring our custom checks are image compliant as well! Additional Check 21 Law Resources:
Contact us today to learn how Altec can support your Check21 initiatives. |
