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Check 21: New Changes in Check Processing
It used to be tempting to write a share draft/check without actually having the funds immediately available in your account to cover it--until now. This process is called "floating" a check. Check 21 will cut the time it takes a check to clear from days to hours so that "floating" a check will be nearly impossible. So, if you need to change your checking habits, do so now before you are hit with expensive NSF fees.
What is Check 21?
The Check Clearing for the 21st Century Act (Check 21) was signed into law on October 28, 2003, and becomes effective October 28, 2004. It is designed to improve today's existing system by efficiently removing an original paper check from the check processing system alleviating the costs associated with physically transporting and securing the checks. Supporters say it could reduce the cost of trucking and flying the paperwork cross-country by $2 billion a year.
How will "Check 21" affect me?
- Checks you write will clear sooner, increasing the risk that a check will bounce if funds are not in the account when the check is first written.
- Important Note: Do not write a check unless you have sufficient funds in your account to cover the payment at the time you write the check.
- Check 21 creates a new kind of paper copy of an electronic image of a check. This special kind of copy is called a "substitute check," and it is legally equivalent to the original check to prove payment.
- Florida State University Credit Union members may receive online access to check images through PCU. This allows you to search and find your own record on your own time.
A FSU Credit Union representative will be glad to answer any questions you may have regarding the changes that the implementation of Check21 will have on you.
