History
Check 21 is short for "Check Clearing for the 21st Century Act.
Passage of this law was accelerated after the terrorist attacks of
September 11, 2001 when restrictions in air transportation caused
delays in the processing of paper checks.
Purpose
The intent of Check 21 is to reduce the number of paper checks that
must be physically transported through the banking system. Electronic
processing reduces check-clearing time, and, as a result, increased
electronic transmission of check information and check images has
occurred since the law went into effect on October 28, 2004.
Components
For electronic transmission to occur, a digital picture (image) of
the original check is made. (In most cases the original checks are
destroyed.) If needed, a document can be printed from this image and
this replacement document is referred to as a Substitute Check or
Image Replacement Document (IRD). Since the IRD will become a legal,
negotiable document subject to the same conditions and regulations
as the original check, it is extremely important to protect against
fraud by including essential security features.
Conclusion
As a result, Ganson has developed an Image Replacement Document
that has a host of security features including invisible fluorescent
fibers, chemical reactivity, toner adhesion and heat sensitive ink.
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Ganson Engineering, Inc., 2901 W. Clarendon , Phoenix, AZ 85017
Tel 602-264-0288, Fax 602-277-5181
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Refer a new customer to us and after they place their
first order, we will reward you with a 5% discount on your next purchase!
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