We deposit eChecks into escrow, under a firm commitment, with an irrevocable escrow agreement.
In lieu of presenting the eCheck to the bank, we send it to the escrow attorney. Upon verification, the attorney issues an attestation. Then, at the appropriate time we move funds between institutions.
Once a check is truncated, businesses and banks can work with either the digital image or a print reproduction of it. Images can be exchanged between member banks, savings and loans, credit unions, servicers, clearinghouses, and the Federal Reserve Bank.
Not all banks have the ability to receive image files, so our company offers this as a service.
It may be wholly digital from payment initiation to clearing and settlement or it may be a digital reproduction (truncation) of an original paper check.
We are global custodians, safekeeping eChecks for our clients in multiple jurisdictions around the world, using their own local branches or other local custodian banks to hold accounts for their respective clients.
An eCheck is a negotiable instrument used in electronic banking systems to represent a physical paper (check). They may be issued up to $99,999,999.99 in a single document.
The eCheck may be wholly digital from payment initiation to clearing and settlement or it may be a digital reproduction (truncation) of an original paper check.
Congressional Act Check 21 lets banks take advantage of image technologies and electronic transport while not being dependent on other banks being ready to settle transactions with images instead of paper. The process of removing the paper check from its processing flow is called “check truncation“. In truncation, both sides of the paper check are scanned to produce a digital image. If a paper document is still needed, these images are inserted into specially formatted documents containing a photo-reduced copy of the original checks called a “substitute check“.