“All Systems Go” for
Check 21 Launch

Getting 100 Percent Next-Day Credit: It's So Easy

Fed Moves to Actual Availability Accounting Practices for Check Services

We’re Counting Down
to March 31st

Reserve Notes

Learn How to Stay Moves Ahead of Your Competition

Board of Governors Proposes Changes to Cash Recirculation Policy

Federal Reserve Consolidates Administrative Billing Functions

Customer Satisfaction with TT&L Remains High

Fed Announces Upcoming
2004 Customer Events

Fed Contacts

“All Systems Go” for Check 21 Launch

The Check Clearing for the 21st Century Act, commonly known as Check 21, will take effect Oct. 28, 2004. Check 21 will spur the use of new technologies that will improve the efficiency of and reduce the cost of the nation’s check collection system and result in better services to bank customers for years to come.

“As a leading payments provider, the Federal Reserve is committed to working with the financial services industry to foster the payments system innovations that Check 21 will bring,” says Fred Herr, product director at the Federal Reserve’s Retail Payments Office. “We intend to provide solutions that will help financial institutions capitalize on Check 21 efficiencies and pass the benefits along to their own customers.”

Benefits of Check 21

By using technology to take full advantage of electronic check collection, financial institutions can offer an alternative to today’s paper-based system. They can re-engineer their check infrastructure with electronics, expedite the collection or return of checks, streamline internal processes, reduce operating costs and realize greater efficiencies.

In addition, Check 21 will pave the way for innovative new services that will provide the opportunity for financial institutions to broaden their deposit options or extend deposit cutoff hours. The Federal Reserve is no exception, Herr says. “We expect to offer our customers accelerated availability and enhanced deposit deadlines.”

Federal Reserve’s Readiness

As part of the Fed’s readiness, the Reserve Banks have recently upgraded platforms and technologies by completing Check Modernization, which brings standard platforms nationwide for check processing and adjustments, a national FedImage^SM Services archive, and robust online check services via FedLine^® Web. These upgrades provide the Reserve Banks with more flexibility to deploy and adjust services based on customer needs and technology opportunities.

Furthermore, the Federal Reserve has taken a leadership role in developing interoperability standards by working with industry contacts to assess how the Federal Reserve and other service providers can best position their operations to adopt common use of technical specifications.

New Check 21 Products

“We are positioned to make Check 21 enhancements to our existing services, plus offer new services nationwide,” Herr explains. For the Federal Reserve, accommodating Check 21 means more than just accepting and processing substitute checks. The Reserve Banks will introduce a new suite of services, which includes forward and return image cash letters, as well as image cash letter delivery, to offer customers more options than ever before.

For nearly two decades, the Federal Reserve has helped payor banks capitalize on the efficiencies brought by electronic check presentment, truncation and image service. That tradition of quality, reliability and customer service continues as the Federal Reserve prepares for Check 21.

Additional Check 21 information is posted online at www.frbservices.org.

back to the top