Check 21 was passed by Congress in 2004 with the goal of eliminating the physical transfer of paper checks between financial
institutions. This legislation was prompted after the events of 9/11 grounded the nation’s transportation system and disrupted check processing. Under Check
21, institutions transmit digital images instead of checks which are far more timely and efficient.
Today, not all merchants and financial institutions have fully adopted Check 21 into their business practices; however, this will soon
change. The Federal Reserve has set the goal for not less than 90% of institutions to be transmitting electronic images by end of year 2009. Beginning in February 2008, Security Service will adopt Check 21 and begin transmitting check images.
This will affect you in that the checks you write could clear faster than they have in the past. The credit union wants to make you aware of this change so
that you can consider faster processing times when paying by check.
Security Service will continue to keep you informed of technological and legislative developments and how they could affect you. For additional
information on Check 21, please visit the links below.
