As of October, 2004 banks have a new negotiable instrument at their disposal- the substitute check. The Check Clearing for the 21st Century Act became law. This key legislation provides for a new, negotiable instrument called a “subsititute” check that banks can exchange electronically – in place of the traditional paper check which needs to be physically transferred between financial institutions. What does it mean for your business? Now checks can clear in a matter of hours, rather than days.
This electronic facsimile allows banks to transfer funds instantly between the account on which the check is drawn and the account into which it is deposited, without the original paper check ever changing hands.
Your deposits made through your office with check “truncation” via a check reader, and made via Accounts Receivable Conversion, known as ARC, become an electronic transfer, rather like your credit card transactions. They get into the flow faster, allow for automatic re-deposits, do not carry the usual bank NSF fees.
This Scanner from Digital Check will read 65 items per minute.
For training and information videos on this scanner click here.
Contact your Sales Representitive or CLICK HEREabout this unique process for your check deposits.