What Check 21 Can Do For You

With the proliferation of the Internet, American consumers needed a new way to make purchases, and the Check 21 Act gave this to them. For example, when you pay for your goods with a check, the retailer creates an electronic image of it. This eliminates the need for your bank to have the paper version of your check before it can be paid. This process is known as “check truncation,” and it benefits you in several ways.

More Retailers Can Accept Checks

Online and telephone retailers are reluctant to take a check because it takes so much longer for them to receive payment this way than with a credit card. Because of the Check 21 Act, more online stores and telephone retailers can accept checks because electronic transactions can be completed at a much faster rate than in previous years. This will be to your advantage if you are unable to obtain a credit card and need to make purchases over the Internet or by phone.

Remote Deposit Is Available

Retail stores and other vendors are not the only ones that can take an electronic image of a check. You can do this as well in a transaction that is known as “remote deposit.” The Check 21 Act allows you to take electronic images of the front and back of a check and send the information electronically to your bank.

Remote deposit makes things convenient for you because it eliminates the need to go to your bank to deposit your money. You will no longer have to fill out deposit slips, stand in a long line and wait for the teller to deposit your funds. Once you have scanned the image and sent it to your bank, your job is finished.

Electronic Processing Is Safe

Before you begin to worry that this type of transaction is not as safe as offering a paper check, stop. Processing a check electronically employs technology that has been in use by financial institutions for several years. It has always been a safe and reliable form of technology, and it will continue to be so online, over the phone and in stores.

No Need to Store Cancelled Checks

Some people like to save their cancelled checks because they may need to prove to their creditors that they made their required payments, but because of the Check 21 Act, your bank may only send you a substitute check. The substitute check is as legally binding as the original check, so you will be able to show it as proof of payment.

PlanetDrugsDirect and Check 21

We find this method of payment to be much more secure than credit cards and far less expensive in terms of banking fees. That’s why PlanetDrugsDirect will be moving forward to the use of the Check 21 system.