Check Clearing For The 21st Century Act - Check 21
 |
Definition of 'Check Clearing For The 21st Century Act - Check 21'A federal law that took effect on October 28, 2004, and gives banks and other organizations the ability to create electronic image copies of consumers' checks. The images are then sent to the relevant financial institutions to be processed, where money from a consumer's account is transferred to the receiving party's account. |
 |
Investopedia explains 'Check Clearing For The 21st Century Act - Check 21'This law aims to make use of technology to reduce or eliminate the costs involved with paper check processing. For example, the cost of physically transporting a paper check from one part of the country to another is far higher than the delivery of an image of a check across a secure network.After a predetermined holding period has elapsed, banks may destroy the original paper check. However, not all banks do this and in some cases, consumers may be able to ask for their cashed checks back for record-keeping purposes. |
Related Definitions
Articles Of Interest
-
The Ins And Outs Of Bank Fees
These service charges could nickel and dime you right out of your nest egg. -
Your First Checking Account
This owner's manual will show you what to expect from your bank. -
Financial Career Options For Professionals
Find out if spreading your wings to try a new career will make you soar or fall flat. -
Should You Add A Securities License To Your Qualifications?
Clients love planners who sell securities, but a securities license takes a lot of work. Learn if the stress and study are worth it. -
How To Report A Tax Cheat
If you report a tax evader to the IRS, you could be eligible for a reward. -
GAAP And The IFRS Standards Convergence Efforts In 3 Substantial Areas
Understand the specific steps that have been taken in hopes of converging the GAAP and the IFRS accounting standards, despite the philosophically and culturally based methodological differences ... -
If I want to have some cash in a liquid account for unexpected emergencies, what is best? A savings account or another type?
It's always a good idea to keep some money set aside in a liquid form, but it's a double-edged sword, because the more liquid your money, the less it's earning. If you never have an emergency, ... -
How Much Will Your Taxes Rise Based On Your Salary?
Find out how high your taxes will rise this year. -
Department Of Justice Sues Standard & Poor's Over Mortgage Crisis - Is Moody's Next?
The U.S. Department of Justice sued Standard & Poor's and is seeking more than $5 billion in damages. -
New Tax Laws To Watch Out For In 2013
With a new year comes new laws, and in 2013 the U.S. government has implemented several changes to the tax code.
Free Annual Reports
