My bet is that the paper check carrying 135 operation will one day be history. Check21 is just part of the process.
The short version. Check21's primary purpose is to allow electronic information to replace paper check transfer while giving banks behind the times something to touch.
Credit cards, Internet banking, electronic transfers and electronic bill payment systems have already hit the check-carrying industry. How many checks do =you= write a month? When someone stands in line in front of you at the grocery and pulls out his checkbook, don't you groan to yourself, "Fer cryin out loud! Why doesn't that bozo just use his bank card?"
Check21 goes the extra step of eliminating the need to transfer the piece of paper even when a paper check is used. So you can expect that when that bozo hands the check to the supermarket cashier, the cashier may run it through a scanner and hand the piece of paper right back to the customer. (I understand that Wal-mart already has the point-of-sale technology in place.
The "substitute check" mentioned in the article is Check21's way of taking care of banks that can't or won't make the all-electronic change. Those banks in the check paying process that do not accept electronic images can still ask for pieces of paper. The substitute check (technically an " Image Replacement Document ") is essentially a special printout that is created from the electronic image.
Big deal for consumers: the end of float time. When you write that check, the money needs to a;ready be in the account. You'll be getting notices about this from your bank.
