Security Center

Check 21

The Check Clearing for the 21st Century Act (Check 21) is legislation enacted by Congress in an effort to improve the way in which checks are handled at financial institutions. The law makes it possible for financial institutions to process checks electronically, eliminating the need to handle the original, paper check.

How Check 21 May Affect You

Affinity has implemented Check 21, allowing for faster, more efficient electronic check processing. By putting this new process into place, you will experience:

• Faster Check Processing
  
  Questions?

  If you have questions about Check 21, please contact the Member Service Center at 800-325-0808 or by email.
  The checks you write will clear much faster than before. Because of this, before you write a check, be sure that your account has enough money to cover the funds that will be withdrawn.
• Increased Security
  Check 21 will eliminate the need to physically transfer your original paper checks from one location to another. This will increase the degree of protection we provide for your personal and account information, ultimately decreasing the chance of account or identity theft. Original paper checks will be destroyed and disposed of in a secure manner.

Also, Check 21 removes the original paper check from the clearing and collection process. This means that Affinity and other financial institutions may provide you with what is known as a "substitute check," instead of your original paper check. Substitute checks are negotiable documents, legally the same as your original paper checks, and should be treated the same way.

Frequently Asked Questions

• What is Check 21?
• How does Check 21 work?
• How will Check 21 affect me?
• What is a substitute check?
• What does a substitute check look like?
• Is a substitute check legally the same as the original check?
• Can I use a substitute check as proof of payment?
• Can I get my original check if I need it?
• What if I need a copy of my canceled check?
• What is a truncated check?
• What checks are eligible to be truncated?
• Can I choose not to participate in Check 21?
• What should I do if something is wrong with the substitute check that I receive, or if I suffer a loss related to a substitute check?
• What are the consumer protections under Check 21?
• How do I file a claim for an expedited recredit?

What is Check 21?
Check 21 is short for the "Check Clearing for the 21st Century Act", legislation enacted by Congress that is designed to improve check processing methods at financial institutions, primarily by decreasing processing time and reducing the chance that checks will get lost or destroyed in processing.

How does Check 21 work?
Instead of transporting paper checks from location to location, your checks will be "truncated," or removed from the check collection and return process. Financial institutions then process truncated checks electronically by transmitting an image of the front and back of the paper check along with associated payment information. If a customer or another institution requires a physical copy of the check, the images and payment information can be used to create a paper "substitute check." These substitute checks are considered legally the same as the original check.

How will Check 21 affect me?
For the most part, you will not notice a difference in how your checks are handled. However, there will be two changes of which you should be aware:

• Check clearing time decrease: Truncating paper checks and processing them electronically greatly reduces the amount of time it takes for the checks you write to clear. As a result, it is important that you ensure your account has sufficient funds to cover any checks you write.
• Secure disposal of original paper checks: Original paper checks are destroyed by shredding after they are truncated, eliminating the need to physically transfer them to other locations. This decreases the risk of account or identity theft.

What is a substitute check?
A substitute check is essentially a paper copy of the front and back of the original check, printed according to specific guidelines. Substitute checks constitute a legal copy of the original check, and as such are considered legally the same as the original check. Thus, they can be used in the same way as the original check.

What does a substitute check look like?
Substitute checks are approximately the same size as regular checks, and must contain a reproduction of the front and back of the original check, including all of the information contained in the original. They must also have the identifying number of the financial institution that truncated the original check or created the paper substitute check, and a message that reads, "This is a LEGAL COPY of your check. You can use it the same way you would use the original check."

Is a substitute check legally the same as the original check?
Yes, provided that it accurately represents the information on the original check and includes the following statement: "This is a legal copy of your check. You can use it the same way you would use the original check." A substitute check must also have been handled by a financial institution.

Can I use a substitute check as proof of payment?
Yes. Because the substitute check is legally the same as the original check, you may use it for proof of payment.

Can I get my original check if I need it?
No. Because substitute checks are legally the same as the original check, we will not retain your original check - it will be destroyed by shredding.

What if I need a copy of my canceled check?
Contact us with the details, and we will provide you with an image of your original paper check. If you require a legal, executable copy of your check, you must file a claim with Affinity.

What is a truncated check?
A truncated check is a regular paper check that has been removed from the check collection and return process, and converted to an electronic image and destroyed. When a check is truncated, the recipient does not receive their original paper check back.

What checks are eligible to be truncated?
Any check, except foreign checks, may be truncated. This includes consumer, business and corporate checks, as well as government issue warrants or checks, money orders, traveler's checks, and more.

Can I choose not to participate in Check 21?
No. All financial institutions and their customers must accept substitute checks in the place of the original check.

What should I do if something is wrong with the substitute check that I receive, or if I suffer a loss related to a substitute check?
Substitute checks must be printed according to very specific guidelines. If you should receive a substitute check that does not meet these standards, appears to have a different problem, or if you suffer a loss related to the substitute check, contact us immediately.

What are the consumer protections under Check 21?
Laws pertaining to checking protect you against erroneous or unauthorized check payments. Under Check 21, there is a special refund procedure called an "expedited recredit" that allows you to file a claim if you believe you have suffered a loss related to a truncated check you received.

How do I file a claim for an expedited recredit?
If you believe that you have suffered a loss related to a truncated check you received, you must contact us within 40 days of when your account statement was mailed or delivered. At that time, you will need to provide a description of the problem, an estimate of the loss, and information about the truncated check. Your claim will be investigated promptly, and you will be contacted with the results.

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