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Substitute Check In United States
The substitute check (also called an Image Replacement Document or IRD) is a negotiable instrument that represents the digital reproduction of an original paper check. As a negotiable payment instrument in the United States, a substitute check maintains the status of a "legal check" in lieu of the original paper check as authorized by the Check Clearing for the 21st Century Act (also known as the ''Check 21 Act''). Instead of presenting the original paper checks, financial institutions and payment processing centers transmit data from substitute checks electronically through either the settlement process, the United States Federal Reserve System, or by clearing the deposits based on private agreements between member financial institutions. Financial institutions that process substitute checks based on these private agreements are typically members of a clearinghouse that operate under the Uniform Commercial Code (UCC). A substitute check is recognized as a legal check as long as t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Substitute Check
A substitute check or cheque, also called an image cash letter (ICL), clearing replacement document (CRD), or image replacement document (IRD), is a negotiable instrument used in electronic banking systems to represent a physical paper cheque (check). It may be wholly digital from payment initiation to clearing and settlement or it may be a digital reproduction (truncation) of an original paper check. Standards and formats Software providers have developed "Virtual Check 21" standards within electronic banking systems which allows creation and submission of demand draft documents to the bank of deposit. Standards may include: * Remotely created checks (RCC) * X9.37 files Geographical significance United States The beginnings of substitute checks in the United States were formalized by the Check 21 Act which came into effect in 2004. See also * Remote deposit * Cheque truncation Cheque truncation (check truncation in American English) is a cheque clearance system tha ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |