The substitute check meets the Act’s requirements, and then it is the legal equivalent of the original paper check. A substitute check can be processed in the same manner as the original paper check. Parties cannot refuse to accept a substitute check that meets the Act’s requirements. “Parties” includes everyone: other banks, paying customers, depositing customers, consumers, corporations, Federal Reserve, processors, etc.

 

●	To facilitate check truncation
●	To foster innovation in the check payment system without mandating receipt of checks in electronic format
●	To improve the payment system overall
●	The Act creates a new negotiable instrument, called a “substitute check”
Check 21 Solution's Key Features
●	Create and send image exchange files to another bank or an image exchange network
●	Receive image files from another bank, or retrieve them from an image exchange network
●	Perform image validation and quality assurance
●	Provide for the handling of substitute checks (IRDs)
●	Conduct reject/repair processes on exchanged items
●	Process return items, Monitor and manage the entire image exchange process
●	Delete files, based on successful file receipt acknowledgments
●	Create status messages and reports
●	Maintain an environment secure enough to protect the confidential nature of the file data being transferred