The examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject. You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. (September 2021) (Learn how and when to remove this template message)

A substitute check or cheque, also called an image cash letter (ICL), clearing replacement document (CRD),[1] or image replacement document (IRD),[2] is a negotiable instrument used in electronic banking systems to represent a physical paper cheque (check). It may be wholly digital from payment initiation to clearing and settlement or it may be a digital reproduction (truncation) of an original paper check.

Standards and formats

Software providers have developed[3] "Virtual Check 21" standards within electronic banking systems which allows creation and submission of demand draft documents to the bank of deposit.

Standards may include:

Geographical significance

United States

Main article: Substitute check in United States

The beginnings of substitute checks in the United States were formalized by the Check 21 Act which came into effect in 2004.

See also

References

  1. ^ "Clearing Replacement Documents Coming This October – Amendments to Rule A10". Federal Financial Institutions Examination Council. n.d. Retrieved June 6, 2013.
  2. ^ "Frequently Asked Questions: 10. What is the difference between an Image Replacement Document (IRD) and a substitute check?". Federal Financial Institutions Examination Council. n.d. Retrieved May 2, 2011.
  3. ^ "Check 21 Processing | Check Verification | Check Scanning".

External links

Categories