What is Check 21?
A: Check 21 speeds the process of clearing checks
by allowing financial institutions to take a copy (electronic
image) of your check and process it electronically rather than
transport the original check by truck, plane or train.
This allows the check to travel from the payee’s bank to
the credit union much faster and eliminates the risk of
While Check 21 may further reduce check float time; MCU has
always advised our members that checks should not be written
unless you have the funds to cover them in your account. However,
should you inadvertently overdraw your account, many of our
checking accounts are covered with Overdraft Privilege, which
normally allows us to cover your overdrafts as outlined in the
Discretionary Overdraft Policy.
To find out if you have the protection of Overdraft
Privilege, call today for more information.
Q: Do we have to accept
A: Yes! Everyone, including banks, credit unions, paying
customers, depositing customers, consumers, corporations and the
Federal Government must accept a Substitute Check that meets the
entire legal requirements.
Q: What happens to my
A: When an
electronic image is created the original check is taken out of the
check clearing process and at some point may be destroyed – this
process is called truncation. The original check may no longer be available, but in
its place is a substitute check – a legal equivalent that can be
used just like the original check. You will be able to obtain a
copy of the substitute check as proof of payment if needed.
Q: What is a Substitute
A: The law permits financial institutions to replace an original
check with a “Substitute Check”, a paper reproduction of the original. The Substitute
Check will be approximately the same size as a business check and
will contain a slightly reduced image of the front and back of the
original check. The
image must accurately represent all the information on both sides
of the original check at the time it was truncated.
On the front of the Substitute Check and to the left of the
image is a legend that states – “This is a legal copy of
your check. You can
use it the same way you would the original check”.
For years Marine Credit Union has been truncating checks, so
changes as a result of Check 21 will be very minimal. We will work
to make this a smooth transition and will continue to provide
information as updates occur.
If you have any additional questions regarding Check 21
please contact your local
Marine Branch or Click Here
to have one of our friendly staff members contact you. Please be
sure to include your name and daytime phone number in your email.