Check 21
Questions & Answers
Q: What is Check 21?
A: The Check Clearing for the 21st Century Act, also known as Check 21, streamlines and improves efficiency in the U.S. bank processing system by allowing for the electronic exchange of check images and eliminating the need to physically transport checks between banks.
Q: Who is affected by Check 21?
A: Everyone, including banks, businesses, and individual consumers.
Q: How does Check 21 affect me?
A: Checks will be processed faster and may clear your account sooner, reducing the "float time," so be sure you have funds available when writing a check.
Q: What is a substitute check?
A: A substitute check is a paper copy of the digital image of your original check (front and back). The entire magnetic ink character recognition (MICR) line will be included and the words "This is a legal copy of your check. You can use it the same way you would use the original check" will be printed on the check.
Q: Will I see substitute checks in my statement?
A: If you receive your canceled checks with your statement, you may receive a mix of substitute and original checks. If you don’t receive your checks back with your statement, you may not notice any change at all.
Q: Does Check 21 only impact HomeStreet Bank customers?
A: No. The legislation is broad in scope and covers all banks and all customers within the United States.
Q: Can I opt–out of Check 21?
A: No. All banks are required to accept substitute checks.
Q: Are there any checks exempt from Check 21 legislation?
A: All checks, except foreign checks, are eligible to become substitute checks.
Q: Are substitute checks an acceptable proof of payment?
A: Yes. Substitute checks have the same legal status as the original paper check and everyone must accept substitute checks as legal proof of payment beginning October 28, 2004.
Q: Are my checks properly imaged if I use gel pens or colored pens?
A: Checks written in gel or colored pens may not be imaged clearly. We recommend that checks be written and endorsed in black ink.
Q: Does HomeStreet Bank convert my paper checks to electronic format?
A: No. We currently have no plans to do so at this time. However, other banks that convert checks to electronic format may do so if your check is included in their customer's deposits.
Q: What happens to my original check?
A: The bank that images your original check may destroy your check once the digital image has been made. Since substitute checks are legal copies of your original check, there is no need to retain the original.
Q: What if I need a copy of my canceled check?
A: Contact our Customer Service Center or visit your bank branch. They will be able to provide you with a copy.
Q: What if there is an error involving a substitute check?
A: If you think there is an error, please contact your branch of account or the Customer Service Center at 1-800-719-8080 or 206-389-6309 in the Seattle area.
|