- Substitute checks are copies of checks used by banks in lieu of the original.
- This practice was made legal by the Check Clearing for the 21st Century Act in 2003, better known as the Check 21 Act.
Next, Are substitute checks bad? A substitute check is an image or a copy of an original paper check. 1 Even if banks use electronic images of a check, the copy is a valid form of payment, and is just as good as the paper check itself.
When must a financial institution provide a substitute check disclosure?
A bank must provide the disclosure to a consumer customer who receives paid checks (which could include paid original checks and/or paid substitute checks) with his or her periodic account statement (1) no later than the bank’s first statement cycle after October 28, 2004, for each consumer who is a customer of the …
in the same way, Why did I receive a substitute check? You may receive substitute checks in other limited circumstances. For example, your bank may give you a substitute check if you ask to have a particular canceled check back to prove a payment. Also, your bank might provide a substitute check to you when returning a “bounced” check that you deposited into your account.
Can you deposit a substitute check chase? A substitute check is a copy of a check that is the legal equivalent of the original check. You may receive a substitute check, such as when a check you deposited is returned unpaid. If you deposit a substitute check and we suffer a loss, cost or expense as a result, you will have to pay us that amount.
What is a substitute check reversal?
Reversal of Refund Within one business day after we reverse a refund, we will send you the original check or a better copy of the original check than the one you previously received, explain to you why the substitute check was correctly charged to your account, and tell you the amount and date of the reversal.
Are banks required to provide check images?
Banks and credit unions are generally not required by law to return cancelled checks or check images. Usually your monthly statement will include the check number, amount, and date of payment for each check you wrote.
Can a substitute check bounce?
Problems Created by Substitute Checks You can’t take advantage of float time like you might have in the past, and you risk bouncing checks and paying overdraft fees. As things move faster, you need to be certain that you have funds available before paying by check.
Can you mobile deposit a substitute check?
Real World Example of Substitute Checks In the past, she had to physically deliver her checks to the bank so that they could be cashed. Today, however, she can deposit her checks electronically using her mobile phone.
What happens if you mobile deposit a fake check?
The fraudster uses the information to deposit a fake check. Once the deposit has been made, the scammer will request funds to be immediately transferred back to them via money order, person to person transfer, wire transfer, reloadable cards or even gift cards.
What size is a substitute check?
Sometimes, a copy of a substitute check will be printed on standard 8.5” by 11” paper without the warranty language or added MICR line, and some may even have optical security features indicating that the document is an original or a copy. 33.
