Substitute check

A substitute check (also called an Image Replacement Document or "IRD"), according to the US Federal Reserve, is "a special paper copy of the front and back of an original check". Not all copies of the original check are substitute checks, and copies of multiple checks on one page (image statements) are not substitute checks either. Substitute checks are authorized by the "Check Clearing for the 21st Century Act" (Check 21 Act). [ [http://www.federalreserve.gov/paymentsystems/truncation About Check Clearing for the 21st Century Act] . (2006, March 1). U.S. Federal Reserve Bank. Retrieved January 16, 2007.]

General

The substitute check is printed on a piece of paper that is usually larger than the original check with additional information. They are formatted with the machine readable numbers on the bottom so they can be processed as if they were real checks. These substitutes should state "This is a legal copy of your check. You can use it the same way you would use the original check" or some similar phrase.

Why have substitute checks

Elimination of paper checks saves the banking industry the costs of handling, sorting, transporting, storing, guarding, and mailing of paper checks. Whenever it is necessary to provide a copy of the check, a substitute check is provided because the original checks have been destroyed or handed back to the issuers.

References

ee also

*Remote deposit

External sources

* [http://www.federalreserve.gov/pubs/check21/consumer_guide.htm Federal Reserve Bank: consumer Guide to Check 21 and Substitute Checks]
* [http://www.relyco.com/ird_paper.htm Relyco - IRD/Substitute Check printing supplier]
* [http://www.x9.org/news/pr031028 The X9 standard establishes the construction, layout, data elements, data content, and printing specifications for an "Image Replacement Document" (IRD)]

www.relyco.com/ird_paper.htm