Check 21 impacts CPAs, consumers and businesses.
Position | National |
The Check Clearing for the 21st Century Act, or Check 21, becomes effective on Oct. 28, 2004.
The intent of the Act is to streamline check processing by enabling electronic processing. The Act provides for voluntary check truncation in the clearing process. It also authorizes that a "substitute check"--or a paper reproduction that contains an image of the front and back of the original check--can be processed just like the original check and is the legal equivalent of the original check for all purposes. Once a check is truncated the original check will no longer be available.
The AICPA has been working with the Federal...
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