What is Check21?

The Check Clearing for the 21st Century Act, commonly known as Check 21, was signed into law October 2003 and becomes effective Oct. 28, 2004. This Act proposes to make an image of a check the legal equivalent of a real check and will permit the digital clearing of checks. The law will allow--but not require--checks to be scanned and sent through electronic systems and stored in databases that can be accessed using secure online pathways. The need for digital clearance was highlighted in the wake of the Sept. 11 terrorist attacks when banks were unable to process checks due to the grounding of flights.

The Act enables collecting banks to remove or truncate the original paper check from the check collection or return process. Your financial institution can then process checks electronically by transmitting check images instead of the original paper check. Branch21 branch capture and image item processing solutions provides you the power to take advantage of the Act by reducing processing costs and improving efficiencies.

In today's ever changing world, technology is providing new opportunities, cost savings and streamlining bank processes and allowing banks to focus on customer relationships and strategic opportunities.

What are the benefits of Check21 legislation?

Branch Capture & Image Item Processing will allow you to:
• Minimize Transportation Costs – reduce dependency on   couriers
• Improve Customer Service – electronic files are available   without delay
• Gain Operational Efficiencies – reduce staffing and training
• Lower Postage Costs
• Minimize Float – faster processing means better control of funds
• Reduce Fraud – image processing can eliminate some forms of   fraud and reduce others

"Full image (electronic) processing is clearly the way of the future." American Bankers, Dec. 2003

Why should you use branch capture and image item processing solutions?

Branch21 has prepared for Check 21 and is strongly positioned to help your bank take advantage of its benefits. Our proven item and image offerings enable your financial institution to better serve valued corporate accounts, clear items more quickly, reduce check fraud, and provide better customer service. Check out our workflow process Branch Capture and Image Item Processing, case studies and press releases.