Check21 transaction process
- A business receives a check for payment via mail, at their business location or at a payment center
- The original check is "scanned" through an Imager and transmitted to gateway servers for processing
- Original check image and transaction data is converted to an Image Cash Letter and forwarded to the
Federal Reserve network for clearing and settlement
- Check writer's account is debited and cleared funds are deposited into the businesses account
- Files are made available for direct import into the businesses in-house accounting system
Benefits of Check21
- Improves settlement time by up to 24-48 hours
- Eliminates data entry of updating files into an account receivable system
- Image processing system is easy to implement and use
What industries can benefit with a Check21 system?
- Retail/merchant (back office implementation)
- Utilities (Payment centers)
- Manufacturing
- Distribution
- Service and rental agencies
- Independent insurance agencies
- Check cashing stores
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What does a business need to process Check21 transactions?
- Internet access
- Check Scanner / Imager
- API link to Remote Deposit Capture Server
How is Check21 different from ACH check conversion?
More checks are available for "truncation" in a post Check21 environment than in a POS (ACH) check conversion environment since business checks, payroll checks, cashier checks, any and all checks can now be truncated. ACH check conversion is limited to consumer checks. More importantly, Check21 truncated checks clear and post more expeditiously than checks converted to ACH transactions. The ACH is a batch processing system. That means checks converted to ACH payments must be sent en masse by a certain cut-off each day to the bank that processes the items through the ACH.
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