Due to upgraded technology and the federal Check 21 law, bank customers can start to expect less “float” time when they write and deposit checks.

While the impact is minimal, it is important to be aware of a few key changes and to be prepared.

1. Checks are being processed more quickly. That means that when you write a check, the money may be deducted from your account sooner. Be sure you have enough money in your account at the time you write a check. (You may have noticed many retail stores already scan your check instead of keeping the paper check.).
2. Items listed on your account statement may look different from one another. Some items may be listed by check number while others are listed by the name of the company that you paid. Always review charges on your statements (or through your online banking) to make sure they match your receipts.
3. Customers who receive cancelled checks in their monthly checking account statements as well as those receiving image statements will notice some of the checks look different. Customers requesting copies of cleared checks may receive a “substitute” check instead of the original paper check. This “substitute” will contain all of the information of your original check and is the legal equivalent of the original for all purposes.

The Check 21 Law allows all U.S. financial institutions to replace paper checks with electronic equivalents in order to speed up check clearing. This allows for greater efficiency and cost savings because financial institutions can lessen the handling, processing and storage of paper checks. It also eliminates the possibility of check processing delays due to natural disasters, storms or any road closures.

Most customers will notice little or no changes with regards to their checking accounts. However, if you have any questions about how this may impact you or about Check 21, please contact your financial center manager for more information

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