Substitute check

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A substitute check or cheque, also called an Image Cash Letter (ICL), Clearing Replacement Document (CRD),[1] or Image Replacement Document (IRD),[2] is a negotiable instrument used in electronic banking systems to represent a physical paper cheque (check). It may be wholly digital from payment initiation to clearing and settlement or it may be a digital reproduction (truncation) of an original paper check.

Standards and formats[edit]

Software providers have developed [3]"Virtual Check 21" standards within electronic banking systems which allows creation and submission of demand draft documents to the bank of deposit.

Standards may include:

  • remotely created checks (RCC)
  • X9.37 files

Geographical significance[edit]

United States[edit]

The beginnings of substitute checks in the United States were formalized by the Check 21 Act in 2003.

See also[edit]

References[edit]

  1. ^ "Clearing Replacement Documents Coming This October – Amendments to Rule A10". Federal Financial Institutions Examination Council. (n.d.). Retrieved June 6, 2013. 
  2. ^ "Frequently Asked Questions: 10. What is the difference between an Image Replacement Document (IRD) and a substitute check?". Federal Financial Institutions Examination Council. (n.d.). Retrieved May 2, 2011. 
  3. ^ http://www.check21.com/virtual-check-21-processing.html