A substitute check or cheque, also called an image cash letter (ICL), clearing replacement document (CRD),
or image replacement document (IRD),
is a
negotiable instrument
A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, whose payer is usually named on the document. More specifically, it is a document contemplated by or consisting of a ...
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
In mathematics and computer science, truncation is limiting the number of digits right of the decimal point.
Truncation and floor function
Truncation of positive real numbers can be done using the floor function. Given a number x \in \mathbb ...
) of an original paper check.
Standards and formats
Software
Software is a set of computer programs and associated software documentation, documentation and data (computing), data. This is in contrast to Computer hardware, hardware, from which the system is built and which actually performs the work.
...
providers have developed
"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
The beginnings of substitute checks in the United States were formalized by the
Check 21 Act which came into effect in 2004.
See also
*
Remote deposit
*
Cheque truncation
References
External links
Understanding Laurentian Bank Cheque
{{DEFAULTSORT:Substitute Check
Banking in the United States
Federal Reserve System
Negotiable instrument law
Cheques
Banking technology
Banking terms