By now, you may have heard about, “The Check Clearing for the 21st Century Act.” It became effective October 28, 2004, referred to as simply Check 21.

The goal of this legislation is to help improve the overall efficiency of our nation’s payment system. Check 21 was designed to reduce the time, risks, and costs associated with paper check processing and make it less susceptible to uncontrollable delays caused by weather, natural disasters or other disruptions in the national transportation system.

With the implementation of Check 21, check processing will be faster if a bank or financial institution sends an electronic image in place of the physical document. Funds may be removed from your account sooner than in today’s system, therefore, there may be less “float time.”

The main standard that is referred to in the Check 21 legislation is the American National Standards Institute (ANSI) X 9.7 Voluntary Standard for Image Readiness. This voluntary standard lists ways that printers can design checks that can be easily imaged. When your bank requests you to make your documents image ready, we are ready and able to design any check to comply. The changes do not affect the print positions of your document, although you might see a slight change to the aesthetic look.

Since Image Ready ANSI X 9.7 standards are voluntary, only about 5% of all banks were expected to adopt this standard in 2004. However, some of the larger banks, Wells Fargo for instance, are beginning to suggest to their customers that they redesign their checks to image ready standards.

Eventually, everyone will be required to comply. When you are ready, just let us know. We’ll be happy to make you Check 21 “ready”.

What is
Check 21?

Check 21 allows, but does not require, any financial institution in the check clearing chain to truncate any check and convert it to an electronic image.

(To truncate a check means to remove an original paper check from the check collection or return process and replace it with an electronic image.)