Check 21 Frequently Asked Questions

If my check is scanned, what happens to my original check?

The original paper check is removed from the check collection or return process and an electronic image of the item is transmitted in lieu of the original item. The original check is then destroyed.

Can I obtain a copy of my check?

You will be able to receive a special kind of copy of the check called a "substitute check". The substitute check will be treated the same as the original check under state and federal law.

Will the substitute check look just like my original check?

See our sample. This document will contain the scanned image of the front and back of your check along with some legal encoding to verify its authenticity.

What will happen to my original check after the imaging process?

The institution that converts your check to an electronic transaction will destroy the check.

How long will it take for my check to clear under the Check 21 Act?

Currently checks take an average of 1.2 days to clear. This is based on 80% of checks being cleared in one day, and the remaining 20% being cleared the second day – for instance when checks have to be transported across the country. Many industry experts predict that same-day check clearing will be common place in a post-Check 21 environment.

If my check clears faster, will I gain access to my deposits sooner?

No. The legislation does not necessarily affect the hold times placed on deposited items. However, it does mean that the actual funds will make their way through the system more quickly, and this will reduce the time that you'll wait for checks to clear.

What if I want to get my original checks back? Can I 'opt-out' of Check 21?

The Check 21 Act mandates that banks accept substitute checks in lieu of the original check. This means that everyone – including banks, customers, businesses, and government agencies – must participate.

How soon after the law goes into effect will I start seeing substitute checks?

Some banks have already participated in image exchange pilot programs. No one really knows how many banks will be early adopters of the new legislation.

What if I have a legal case, and I need to present a paid check?

Under Check 21, a substitute check is the legal equivalent of a check and may be used for any purpose that a cancelled check could be used for, including proving payment.

In the past, if I deposited a check and it was later returned because the individual that wrote the check had insufficient funds in their account (NSF), then I could come to Compass and either cash the check or convert it to a cashiers check. Will I be able to do that with substitute checks?

The same guidelines apply now as then. If we would have given you immediate credit for a check in the past, we will do the same for a substitute check today.

Is there a way to tell which bank converted my check to a substitute check?

Banks are required to identify themselves as the "reconverting bank" (the one that created the substitute check) so as to preserve any previous bank identifications. This will either be indicated on the substitute check or may be obtained by contacting your bank.

Are there any web sites that provide more information on Check 21?
Does Check 21 create an enhanced risk of fraud?

No. In fact, the electronic processing allows banks and bank customers to access check images much faster, enabling them to identify potential frauds early and take immediate steps to prevent losses.