Digital Image Act Spells End of Check 'Float'

KingFishKingFish
edited September 2004 in Science & Tech
Banks are facing a new federal regulation that greenlights digital checks in lieu of paper documents.
While a hassle for the financial services space, Check Clearing for the 21st Century Act, or Check-21, is creating new opportunities for archiving service providers and storage vendors. Check 21 ends the float time for checks to clear, freeing up banks to use digital copies of checks in place of paper. Called image replacement documents (IRD), they have the same legal status as their paper predecessors. The digital image checks clear immediately. Paper checks generally require a day or two to be processed.
This was inevitable as banks have traditionally hated the 'float'. -KF

Source: Internet News
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