Checking Account Tips

Providing valuable educational information to our Members is a priority at RCU. Checking Accounts have changed. Read all about these changes and your rights as a consumer by following the links below. If you have questions about RCU Checking Accounts, please call us at: (800) 479-7928, or visit an RCU branch.

• What You Should Know About Your Checks
• Check Clearing for the 21st Century Act (Check 21)
• When is a Check Not a Check? Electronic Check Conversion

What You Should Know About Your Checks

Checking accounts have changed. Checks are being processed more quickly these days. Faster processing means that when you write a check, the money may be deducted from your account sooner. Items on your checking account statement may look different from one another. Read more at: http://www.federalreserve.gov/pubs/check21/shouldknow.htm

Understanding Check 21

The Check Clearing for the 21st Century Act (Check 21 Act) is a federal law that went into effect October 28, 2004. Check 21 allows financial institutions to clear checks by exchanging electronic images. If financial institutions are not set up to receive electronic images, they may make a "substitute check", which is a legal copy of the original check with the same legal status.

While Check 21 represents the beginning of a new era in financial services, the effects of Check 21 on banking will be very gradual. Over time you may see the following effects:

Checks and deposits will clear faster. Checks that once took days to clear will start to clear in hours.

• If a check you deposited is returned, instead of receiving the original check, you may receive a substitute check. A substitute check will have an image of both the front and back of the original check along with a statement that the check is a legal copy of the check.
• When you request a copy of a check, you may receive a copy of a substitute check, rather than the original.

• Frequently Asked Questions About Check 21
• Substitute Checks and Your Rights Brochure

Electronic Check Conversion

Suppose you’re at a store making a purchase and decide to pay by check—at least, that’s what you believe you’re doing. The clerk asks you for a check that is completely filled out, partially filled out, or even blank. The clerk then runs the check through a machine and hands the voided check back to you with your receipt. What just happened? Did you pay by check? Why did the clerk return the check to you? The answer is, you just experienced electronic check conversion. Read all about how electronic check conversion works at http://www.federalreserve.gov/pubs/checkconv/default.htm