Substitute check
{{Globalize|1=article|2=United States|date=September 2021}}
A substitute check or cheque, also called an image cash letter (ICL), clearing replacement document (CRD),{{cite web|url=http://www.cdnpay.ca/imis15/eng/res/ns/Image_Rule_A10.aspx|title=Clearing Replacement Documents Coming This October – Amendments to Rule A10|date=n.d.|publisher=Federal Financial Institutions Examination Council|accessdate=June 6, 2013}} or image replacement document (IRD),{{cite web|url=http://www.ffiec.gov/exam/check21/faq.htm#General|title=Frequently Asked Questions: 10. What is the difference between an Image Replacement Document (IRD) and a substitute check?|date=n.d.|publisher=Federal Financial Institutions Examination Council|accessdate=May 2, 2011}} 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
Software providers have developed{{Cite web|url=http://www.check21.com/virtual-check-21-processing.html|title = Check 21 Processing | Check Verification | Check Scanning}} "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
=United States=
{{main | Substitute check in United States}}
The beginnings of substitute checks in the United States were formalized by the Check 21 Act which came into effect in 2004.
See also
References
External links
- [https://hardbacon.ca/en/banking/laurentian-bank-sample-cheque-everything-you-need-to-know-to-find-it-and-understand-it/ Understanding Laurentian Bank Cheque]
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Category:Banking in the United States
Category:Federal Reserve System