The Check Clearing Act for the 21st Century (or more commonly referred to Check 21) is a federal law that enables banks to handle more checks electronically to make check processing faster and more efficient.
Check 21 makes a “substitute check” that banks can electronically transmit rather than physically moving the original paper checks between the receiving and paying banks.
Check 21 applies to all types of checks: consumer, business, travelers, money order, bank and U. S. Treasury.
With the ability to make deposits electronically throughout the day, you can reap the benefits of bank availability schedules that reward early deposits.
Electronic deposit allows for a longer transaction window which means you can deposit more items than you normally would, reducing holdover. As a result of accelerated check clearing you may also face reduced fraud risk by learning about returned items faster.
Most companies will only have to physically deposit items that are unable to be handled through remote deposit capture. But, with nearly all items eligible for capture, you can cut your courier/transportation requirements to one day a week.
You will no longer have to spend time and money listing items for deposit, manually keying check amounts, balancing deposits, traveling to the bank, or maintain multiple banking relationships for locations spread across the country. It allows you to streamline day-to-day operations of your treasury group.
Being able to deposit electronically from anywhere breaks down the traditional geographic barriers in the banking industry, enabling you to consolidate banking relations and reduce associated banking fees