Check 21 – The Wave of the Future
Technology has revolutionized the ways in which businesses can accept payment. In the olden days, like the seventies, most people had to cart cash and checks around with them if they wanted to make a purchase. They had to stand in long lines at the bank in order to withdraw cash. They had to keep track of all the checks they wrote in order to make sure not to overdraw their accounts. Carrying cash made them subject to robbery on the streets. Carrying checks made them subject to forgers who could write unauthorized checks and steal their money. But thanks to Check 21 and the electronic revolution, these things aren’t a concern anymore.
Check 21 is shorthand for the Check Clearing for the 21st Century Act. This federal law was enacted by Congress on October 28, 2003, and was enacted a year later, on October 28, 2004. It gave businesses the option of making a digital version of a paper check, eliminating the need to continue handling the original document. This prevented the occasional occurrence of the lost paper check. The electronic version of the document is called a “substitute check,” and is handled electronically and, therefore, more efficiently. Check 21 has streamlined the payment process.
By processing checks submitted to them for payment electronically, businesses are able to protect themselves from further loss. Since Check 21 isn’t under the jurisdiction of the National Automated Clearing House Association (NACHA, the Electronic Payment Association) rules and regulations, checks cleared by Check 21 aren’t subject to the same fees and fines. This means that it’s incredibly simple and incredibly affordable to use Check 21 to process checks that are submitted to your business for payment. All you need in order to do this is a scanner to enable you to create substitute checks and software to allow you to present that substitute check to the appropriate financial institution.
Check 21 offers you unparalleled freedom and security in the way you do business. Scanning checks as soon as you receive them prevents them from getting lost, making it difficult for you to collect payment from the customer. And collecting those funds electronically makes it more likely that you’ll be able to get those funds in a timely basis, and will protect you from returned check fees from your financial institution as well. Check 21 is the wave of the future in cashing checks.