Check Processing Will Be A Faster System Soon - KCBD NewsChannel 11 Lubbock

8/31/04

Check Processing Will Be A Faster System Soon

A new law takes affect in two months that will help discover check fraud faster. The law is called Check 21 and it allows stores to take digital images of your check and turn it into your bank. The bank must then accept it.

What this does, is allow banks to speed up the check clearing process instead of physically transporting checks from bank to bank. In other words, a check that takes four days to clear could take two days.

Let's say you are writing a check at a business like Wal-Mart. It has an automated clearing house system that takes a digital image of your check. Your original check is given back to you and that image or substitute check is sent to your bank.

By law, the bank is required to take the substitute check as a form of payment.

American State Bank Vice President Greg Jones says that this is a way to help banks decrease paper use, decrease fraud, and help the consumer. "In time, many of the stores will begin doing the scanning. Just a like a few of them are now. In a few months or years probably, a lot of the stores will be doing that. A lot of checks, instead of transporting them physically, will be transferred images to your bank," said Jones.

Jones says that bigger banks like Bank of America and Wells Fargo are already using an electronic processing system. Stores like Walmart, Old Navy and Fast Stop Convenient Stores electronically process checks.

The Feds passed the check processing law last year, but takes into effect October 28th. Banks are the only entities affected by this law, it doesn't change the way you spend your money. However, you must make sure you have money in your account before writing checks because they will clear quicker than they have before.

  • Local News on KCBD.comNewsMore>>

  • DOJ looks into how AT&T, Verizon handle defecting customers

    DOJ looks into how AT&T, Verizon handle defecting customers

    Friday, April 20 2018 7:43 PM EDT2018-04-20 23:43:53 GMT
    Saturday, April 21 2018 5:56 AM EDT2018-04-21 09:56:18 GMT
    The Justice Department is investigating AT&T, Verizon and a standards-setting group. (Source: Raycom Media)The Justice Department is investigating AT&T, Verizon and a standards-setting group. (Source: Raycom Media)
    The Justice Department is investigating AT&T, Verizon and a standards-setting group. (Source: Raycom Media)The Justice Department is investigating AT&T, Verizon and a standards-setting group. (Source: Raycom Media)

    The Justice Department has opened an antitrust investigation into whether AT&T and Verizon and a standards-setting group worked together to hinder consumers from easily switching wireless carriers.

    The Justice Department has opened an antitrust investigation into whether AT&T and Verizon and a standards-setting group worked together to hinder consumers from easily switching wireless carriers.

  • Jeb Bush to eulogize mother, Barbara, in private service

    Jeb Bush to eulogize mother, Barbara, in private service

    Saturday, April 21 2018 12:04 AM EDT2018-04-21 04:04:04 GMT
    Saturday, April 21 2018 5:56 AM EDT2018-04-21 09:56:11 GMT
    (AP Photo/Evan Vucci). Mourners pause as former U.S. first lady Barbara Bush lies in repose during the visitation of former first lady Barbara Bush at St. Martin's Episcopal Church, Friday, April 20, 2018, in Houston.(AP Photo/Evan Vucci). Mourners pause as former U.S. first lady Barbara Bush lies in repose during the visitation of former first lady Barbara Bush at St. Martin's Episcopal Church, Friday, April 20, 2018, in Houston.

    As the outpouring of tributes continues for Barbara Bush, the general public can pay its respects to the former first lady.

    As the outpouring of tributes continues for Barbara Bush, the general public can pay its respects to the former first lady.

  • 4 Palestinians killed by Israeli fire in Gaza border protest

    4 Palestinians killed by Israeli fire in Gaza border protest

    Saturday, April 21 2018 1:44 AM EDT2018-04-21 05:44:10 GMT
    Saturday, April 21 2018 5:55 AM EDT2018-04-21 09:55:53 GMT
    (AP Photo/Adel Hana). Palestinian protesters evacuate a wounded youth during clashes with Israeli troops along Gaza's border with Israel, east of Khan Younis, Gaza Strip, Friday, April 20, 2018. Thousands of Palestinians joined the fourth weekly protes...(AP Photo/Adel Hana). Palestinian protesters evacuate a wounded youth during clashes with Israeli troops along Gaza's border with Israel, east of Khan Younis, Gaza Strip, Friday, April 20, 2018. Thousands of Palestinians joined the fourth weekly protes...

    Gaza health officials say 4 Palestinians, including 15-year-old boy, killed by Israeli army fire as thousands join fourth weekly protests on Gaza border.

    Gaza health officials say 4 Palestinians, including 15-year-old boy, killed by Israeli army fire as thousands join fourth weekly protests on Gaza border.

Powered by Frankly