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How Does Deposit24 Impact Customers?
Can Customers Opt Out of Check Conversion?
Is there a dollar limit on the amount of ARC transactions?
What is check truncation?
What is check conversion?
Where are the images stored?
What is Check 21?
What is a Substitute Check?
Why is an Image Replacement Document (IRD) considered legal equivalent rather than just an image of a check?
How Does Deposit24 Impact Customers?
Customers will notice that no physical checks are returned with their bank statement, instead they will see the transaction reported on their statement under electronic transactions and bearing your company name. Customers will also note that debits may post one or more days sooner than by paper check.
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Can Customers Opt Out of Check Conversion?
Billers will need to offer an opt-out solution for consumers who prefer not to have their check converted. It is the billers' responsibility to develop their own management for the process, though CPS offers a utility for merchants to manage opt-out customers.
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Is there a dollar limit on the amount of ARC transactions?
Yes. In September of 2006, the limit for ARC transactions was changed to $25,000.
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What is check truncation?
Check truncation is the conversion of a check into an electronic debit or image of the check by a party other than the paying bank. This transaction may be governed by check law, including UCC, Reg CC, the electronic funds transfer law, or other clearinghouse rules and electronic banking laws. Examples of check truncation include RCK, IRD, ECP, and Image exchange.
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What is check conversion?
Check conversion is the act of transforming a payment initiated by a paper check that has not been processed into an electronic payment. This allows the payment to be processed under electronic banking law, instead of check law. After the conversion, the check is referred to as a source document. Examples of check conversion include POP and ARC.
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Where are the images stored?
Images are stored in our Viewpointe Archive and can be accessed through Web Reporting.
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What is Check 21?
Check 21 is the common name of federal legislation that went into effect in 2004 modernizing the legal requirements around check processing. Check 21 is intended to facilitate check truncation by authorizing substitute checks, to foster innovation in the check collection system without mandating receipt of checks in electronic form, and to improve the overall efficiency of the nation's payments system.
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What is a Substitute Check?
A substitute check is a form of legal payment transmission created by Check 21. A substitute check is a paper reproduction of the original check that meets the following criteria:
- Contains an image of the front and back of the original check.
- Bears a MICR line containing all the information appearing on the MICR line of the original check, except as provided under generally applicable industry standards for substitute checks to facilitate the processing of substitute checks.
- Conforms, in paper stock, dimension, and otherwise, with generally applicable industry standards for substitute checks.
- Is suitable for automated processing in the same manner as the original check.
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Why is an Image Replacement Document (IRD) considered legal equivalent rather than just an image of a check?
An IRD meets certain federally mandated requirements to make it a legal form of payment. An IRD is a substitute check and is the legal equivalent of the original check for all purposes, provided that it:
- Accurately represents all of the information on the front and back of the original check at the time the original check was truncated.
- Bears the legend: ‘This is a legal copy of your check. You can use it the same way you would use the original check.’
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