With the popularity of mobile payments and digital wallets, ordering paper checks might seem like a thing of the past. But there are still plenty of reasons to keep them around: avoiding overdraft fees, for instance. The Check 21 Act changed the way we use checks. Instead of the original copy, we only require a substitute check that has the same power as the original copy. Keep reading to know Zil Money a print check online free can assist you in Check 21 act.
What is Check 21 act?
On October 28, 2004, the Check Clearing for the 21st Century Act was implemented in the US. Its goal is to make check processing more efficient for American banks.
It enables banks to execute payments without using the original physical checks by using an electronic check and substitute checks. Checks can be converted into electronic checks through a procedure known as check truncation. Financial institutions can then use the new substitute check for processing, which lessens the manual aspect of conventional check processing.
The standards necessary to develop substitute checks are also described in the Check 21 Act. The Check 21 Act does not cover the actual act of depositing funds. “A remote deposit” is when a check is electronically deposited.
How Check 21 act is helpful?
Before Check 21 was implemented in 2004, a check or checks had to be physically transferred from the bank where they were placed to the bank that would pay them. Thanks to the Check 21 Act, banks can now electronically transfer a check’s front and back as well as the payment information linked to the bank, which will be cashed. A “substitute check” can be printed using the images if either bank needs a physical copy of the check.
What Is a Substitute Check?
An original check has been turned into a substitute check. The Check 21 Act allows banks to process electronic checks with the same power as the original checks. A “substitute check” can be printed by a bank if it wants to obtain an additional physical copy of a check.
A substitute check has the same privileges as the original check. This substitute check can frequently be used as evidence of payment by the check’s owner (the payer).
Security of Electronic Payment Transfer:
Electronic payment transfer was there long before the Check 21 Act was introduced. The payment information sent is completely secure so far, no security problems have arisen, and each day the security keeps on improving. Zil Money is a check-printing online platform with a state-of-the-art security system. The cloud-based platform stores all your information in the cloud which will be completely secure.
Other Features:
Send checks by mail for $1.25 through USPS/FedEx and also, You can send or transfer money through ACH/ RTP, email check, digital check, print deposit slips, get paid link, bank data, bill payment, invoicing, AP.
Online Checkbook Balancer
By connecting to several banks and offering checkbook balancing software, our online platform aids customers in managing their funds. You can access your transactions in one spot by connecting to different banks. The platform provides bank reconciliation, budgeting, and checkbook balance solutions and is integration with banks and Finacial services.
Zil Money is the best check printing and mailing software on the market with many other features, Zil money is a financial management platform to control finance. Its features make it easy to use and quickly help to print checks. It is also highly accurate and user-friendly. If you are looking for a check printing software download, stop looking and use our cloud-based platform, which will save you time and money.
Use of MICR Toner
Even though only a small number of organizations, including banks, still process checks using magnetic ink character recognition, Check 21 requires magnetic ink to be used for the MICR line.
You don’t have to waste money on tonner, Zil money is there for you. Our platform helps you print MICR lines accurately and as per Check 21 Act in a blank stock paper, saving your precious money and time and instantly printing checks on demand. Our platform provides other added features for managing your business finance.
There are still plenty of reasons to use paper checks, even in the age of mobile payments and digital wallets. The Check 21 Act changed the way we use checks now. Instead of the original copy, we are only required to submit a substitute check with the same power as the original copy. Zil Money’s print check online free service can help you create the best high-quality check substitute copy in compliance with the Check 21 Act.
