Talk:Check 21 Act

From Wikipedia, the free encyclopedia

The primary article states that no retaielrs have implemented this. What is Wal-Mart doing? They have a new system that allows them to scan the check at the register and hand it back to the consumer. —The preceding unsigned comment was added by Rjbrown99 (talk • contribs) 00:47, August 27, 2006 (UTC)

Essentially all Check 21 did was create a recourse for clearing houses called the substitute check. The Check 21 Act has however helped check clearing under Check 21 authority be a more workable technology. Also, Wal-Mart uses a system called POP (Point of Purchase ACH debit conversion) that falls under NACHA rules, not Check 21.

In the article there is this comment: "Not all banks have the ability to receive image files". The truth be told, most banks do not have the ability to receive image files. In fact, the issue is even deeper: the number of banks actually processing all of it's chacks as images internally, ie processing them as paper items or printing images as IRD's, and then processing the paper, may well be "zero". Even the Federal Reserve is still substantially printing IRD's, sorting the paper and rescanning the documents to create on-going image files.

Then, there is this statement: "Several banks have plans for 'corporate capture'. Retailers, such as Walmart, can convert a paper check into an ACH (Automated Clearing House) debit." These are two completely different technologies, and the Wal-Mart usage (since ceased) is actually of the ACH system, as noted in the paragraph, and doesn't involve check21 at all.

Further, there is a reference to ACH being less expensive than paper check processing. While banks do not publish their costs associated with different processes, the banks we do business with tell us exactly the reverse is true and ACH is presently more expensive than processing paper checks. Perhaps as check volume declines (a reflection of increased use of credit and debit cards by consumers), this statement will someday become true but there isn't any evidence it is true today. In any event it is a totally unsupported statement, reflective more of the authors faith than demonstrated fact. What is true is that banks charge depositors more for ACH transactions than for paper check deposits. What is also true is the ACH is not the subject of this article, and the whole discussion is moot. Perhaps the author should expand the article to be titles "Check Electronification".

This comment is somewhat mystifying: "Bank Customers may no longer be able to obtain autographs from cancelled checks endorsed by celebrity recipients. This practice may have been used by some charities to encourage donations [1] and may have also been used in other contexts as well." What does this have to do with anything?

Lastly, the author makes this assertion: "Although banks will clear and receive the funds associated with a deposited transaction sooner and the issuer of the check may find that the funds are debited from his account faster, banks are not under an obligation to make these funds available to the account holder that deposited the check any faster." I was under the impression that all items deposited as a Check21 image had to be credited as good funds with two business days. Items deposited as paper can still be cleared according to published check clearing schedules. It's a small distinction in the overall scheme of things, but one more clarification the author might consider making. —Preceding unsigned comment added by MdTrFn (talk • contribs) 14:17, 13 October 2007 (UTC)

To address the paragraph immediately above, section 16 of the Check Clearing for the 21st Century act required the Board of Governors of the Federal Reserve to report to congress 30 months after the law's effective date. They were primarily to report on whether or not permissible hold periods should change due to the changes in local and non-local checks brought about by Remote Deposit Capture by way of Check 21. Long story short is that the hold periods did not change. So cash availability to the presenter is still subject to the current state of Reg CC and Subpart D.