The Check Clearing for the 21st Century Act, formally known in the
House as HR 5414 and informally known as Check21,
aims to facilitate check truncation by allowing banks to more easily exchange
checks electronically through the use of substitute checks. Other objectives of
the measure include fostering innovation in the check collection system without
mandating receipt of checks in electronic form, and improving the overall efficiency
of the nation's payments system.
Current law requires banks to physically present
and return original checks.
After a customer deposits a check with his or her bank, the bank typically
transports the check from the branch or ATM where it was deposited to a central
operations center. The check is then usually sent to one or more intermediaries
- such as a Reserve Bank or a correspondent bank - or to a clearinghouse for collection
before it is ultimately delivered to the bank on which it is drawn for payment.
During each step of this process, the check must be physically shipped to its
destination by air or ground transportation. The current paper-based approach
to check handling has reached its limits. There are no further productivity gains
to be made using traditional technologies. Check reader/sorters are unlikely to
be able to move checks any faster without causing physical damage to the checks.
Inefficiencies and high error rates have become burdensome and costly.
Check fraud continues to be a growing problem.
Meanwhile, competitive and regulatory pressures are leading banks to make
funds available to depositors sooner.* Banks are providing their branches with
capture hardware and software to scan checks, record the MICR information and
provide a high-quality image to meet the requirements for image retention and
replacement images from an archive.
ScanPoint can provide the branch Check Scanning hardware and software to scan
checks, record the MICR information and provide a high-quality image to meet the
requirements for image retention and replacement images from an archive. Financial
institutions, for competitive advantage and monetary gain, will want to benefit
from the efficiencies provided by check truncation, turning paper checks into
electronic form and using electronic methods to handle check clearing.
Learn more about EasyCheck21
Software 
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