In 2004, Congress passed legislation to change the fundamentals of processing checks. The legislation termed “Check Clearing for the 21st Century”, or Check 21, is designed to enable digital images of a paper check to substitute for the actual paper check.
The process is referred to as Remote Deposit Capture because an image of the check document is captured and used in place of the original document. One of the huge benefits is that paper checks no longer have to be physically transported to various Federal Reserve Banks and clearing banks for processing. Electronic processing overcomes delivery and latency problems caused by transportation delays due to weather, mechanical breakdown, or disasters.
Check 21 processing facilitates faster funding on a wider variety of checks and with fewer restrictions than ACH. This flexibility makes Remote Deposit Capture ideal for many sales environments. Checks can be accepted at the Point of Sale or when the consumer is not present. Check 21+ is a versatile payment option that fits the needs of many different merchants. Welcome to the future of check processing!
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