"Check 21" is industry shorthand for the Check Clearing for the 21st Century Act signed into law on October 28th, 2003 and becoming effective on that day in 2004. Check 21 allows for the creation of Substitute Checks from a check image. These Substitute Checks have the same legal status as the original paper check are processed in the same way.

With approximately 42 billion checks written in the United States each year, financial institutions are embracing check imaging as a way to reduce transportation costs, processing costs, and fraud risks associated with physically processing the original checks.

Check Imaging Statistics

• More than 42 billion checks written in the U.S., annually
• A check is typically handled on average 19 times, increasing the opportunity for errors.
• Financial institutions spend $6 billion to $8 billion per year on check processing.
• Estimates of the cost savings attributed to check imaging and image exchange range from $1 billion to $2.1 billion.
• Empty envelope fraud accounts for 49% of all ATM fraud (source: Fair Issac's Card Alert Fraud Manager Team).