Check 21 - Check Truncation Act  
   Home Page
  Hardware Options
   FAQ's -     Consumers
   Apply
   Cost Savings
   Client Services
   Client Support


We are Faster!

We are Easier - 24 Hour Access!

Online reporting!

We want to hear from you. Please take a minute to complete our Information Request form.

A Senior Sales Representative will respond immediately!

Check 21 - IRD Check Truncation Act

Below is a Demo of our Scanned Check IRD and Customer Search solution with associated payor information

Call us for a customized Demonstration of our complete Check 21 solution (866) 927-7180

Check 21 - Check Truncation Act

Below is a Demo of the Scanned Check and Customer Search with associated payor information

Call us for a customized Demonstration of our complete system (866) 927-7180

Imaging Solutions - Scan Checks - Refresh List - Batch Edit

Check Search:

This utility allows you to view, modify, delete or release checks for processing. Select a check from the list below to continue.

Check Edit
This utility allow you to modify an existing check.
ID: ABA: Account: Check #: Amount: Action:
946 E 122000661 09005-04875 111 $64.00 Edit / Delete / Release
949 E 053112107 410093421 02 $29.99 Edit / Delete / Release
1289 E 053904483 000775291665 1164 $200.00 Edit / Delete / Release
1309 E 053904483 000775291665 1164414 $400.00 Edit / Delete / Release
Sample Check Image (Front & Back)
Name: ABA: Account: Check #: Amount: Sub: Cust ID:
ABA & Account Number Previously Scanned - Name: OfficeTeller Cust ID:

Transactions - Detail


Transaction Information
Transaction ID: 8106689 121143258225106
Transaction Status: SETTLED
Sub Merchant: OfficeTeller
Transaction Date: 1/9/2004
Transaction Type: DEBIT - CHECK 21
Account Type: CHECKING
Check Number: 111
Image: View Check Image
Amount: $64.00
Memo:
Addenda Text:
Batch File ID: 1655
ATM Verify:
Auto Resubmit: 0

Bank Information

Account Name: OfficeTeller
ABA Number: 122000661
Account Number: 09005-04875
Bank Name: Bank of America
Bank Address:
Bank City:
Bank State:
Bank Zip Code:
Customer Information
Customer ID:
Name:
Address:

City:
State:
Zip Code:
Phone Number:
E-Mail Address:

Transaction History (All Times Are PST) [ Add Note ]

1/9/2004 10:37:44 AM Transaction Created from
Check 21 Administration by: NATIONAL EFT
1/9/2004 5:18:00 PM Sent to Automated Clearing House (CN)

Feature Story

Overview of Federal Regulations - (courtesy of ABA)

  • Update – October 28, 2003
    • The President signed the bill into law.

The Check Truncation Act (CTA) is a proposed federal law drafted by the Federal Reserve Board and proposed to Congress. A version of it was introduced in the House of Representatives in September, 2002 as H.R. 5414. The goal of the legislation is to increase efficiency of the nation's payment system by removing certain legal impediments to check truncation so that banks would be able to easily present and return checks electronically. It would not mandate the receipt of checks in electronic form, but would facilitate it. A new instrument called a "substitute check" created from an electronic check image would be the legal equivalent of the original check and could be processed by receiving banks just as original paper checks are.

Click here for Hardware Options!

Among the benefits touted by the Federal Reserve:
  • quicker collection and return of checks;
  • reduction of the industry's reliance on the physical transportation of checks;
  • reduction of infrastructure costs;
  • benefit to customers if the changes enable banks to offer broader deposit options, later cutoff hours, more timely information, and faster check collection and return.
Check Clearing for the 21st Century as Presented by Electronic Check Clearing House Association: Click here for report

The FRB prepared a section by section analysis of the proposed law: Click here for report

Financial institutions that are not currently imaging checks will want to review the potential benefits.

First published on BankersOnline.com 10/21/02

National EFT ( Electronic Funds Transfer ) specializes in the origination of moving money electronically. Our online virtual terminal gateway software accepts direct ACH (Automated Clearing House) network and check truncation act transactions.

The ACH / EFT Network is a highly reliable processor and efficient nationwide batch-oriented electronic funds transfer system governed by the NACHA ( National Automated Clearing House Association ) Operating Rules and electronic funds transfer act which provide for the inter-bank clearing of electronic check payments for participating depository financial institutions. The Federal Reserve and electronic payments network act as ACH operators, central clearing house facilities through which financial institutions transmit or receive ACH entries. Over the past five years our merchants have processed MILLIONS OF TRANSACTIONS proving the software and service to be reliable, effective and a cost saving process for electronic transactions.

National EFT continues to meet the challenge of our clients by offering a cost effective e-check gateway into the electronic banking system often referred to as the Automated Clearing House ( ACH ). Electronic banking includes the transfer of funds between companies and/or consumer accounts for collection and payments.

Use our check truncation act software with confidence! Enjoy using our online ecommerce gateway for your eCheck, electronic checks, Check 21, ECC, recurring transactions, accept Credit Card, Shopping Cart, Merchant Account, check conversion. Our virtual terminal also stores the check data and check images in a database for future research and retrieval, re-submission of NSF checks and more.

Feature Story

Overview of Federal Regulations - (courtesy of ABA)

  • Update – October 28, 2003
    • The President signed the Check 21 bill into law.

The Check 21 Truncation Act (CTA) is a proposed federal law drafted by the Federal Reserve Board and proposed to Congress. A version of it was introduced in the House of Representatives in September, 2002 as H.R. 5414. The goal of the Check 21 legislation is to increase efficiency of the nation's payment system by removing certain legal impediments to check truncation so that banks would be able to easily present and return checks electronically, image replacement documents. It would not mandate the receipt of checks in electronic form, but would facilitate it. A new instrument called a "substitute check" created from an electronic check image would be the legal equivalent of the original check and could be processed by receiving banks just as original paper checks are.

Click here for Hardware Options!

Among the benefits touted by the Federal Reserve:
  • quicker collection and return of processed checks;
  • reduction of the industry's reliance on the processing and physical transportation of checks;
  • reduction of infrastructure costs;
  • benefit to customers if the changes enable banks to offer broader image deposit options, later cutoff hours, more timely information, and faster check collection and return.
Check Clearing for the 21st Century as Presented by Electronic Check Clearing House Association: Click here for report

The FRB prepared a section by section analysis of the proposed law: Click here for report

Financial institutions that are not currently imaging checks will want to review the potential benefits.

First published on BankersOnline.com 10/21/02

OfficeTeller ( Electronic Funds Transfer ) specializes in the origination of moving money electronically. Our online virtual terminal gateway software accepts direct ACH (Automated Clearing House) network and Check 21 solution transactions.

The ACH / EFT Network is a highly reliable processor and efficient nationwide batch-oriented electronic funds transfer system governed by the NACHA ( National Automated Clearing House Association ) Operating Rules and electronic funds transfer act which provide for the inter-bank clearing of electronic check payments for participating depository financial institutions. The Federal Reserve and electronic payments network act as ACH operators, central clearing house facilities through which financial institutions transmit or receive ACH entries. Over the past five years our merchants have processed MILLIONS OF TRANSACTIONS proving the software and service to be reliable, effective and a cost saving process for electronic transactions.

OfficeTeller continues to meet the challenge of our clients by offering a cost effective e-check gateway into the electronic banking system often referred to as the Automated Clearing House ( ACH ). Electronic banking includes the transfer of funds between companies and/or consumer accounts for collection and payments.

Use our Check 21 software with confidence! Enjoy using our online ecommerce gateway for your eCheck, electronic checks, Check 21, ECC, recurring transactions, accept Credit Card, Shopping Cart, Merchant Account, check conversion. Our virtual terminal also stores the check data and check images in a database for future research and retrieval, re-submission of NSF checks and more.

ACH / EFT Terms

ABA Number - A nine digit number (eight digits and a check digit) that identifies a specific financial institution. These numbers are assigned by the Rand McNally Corporation and are listed in its annual publication Key to Routing and Transit Numbers.

ACH Automated Clearing House- The Federal Reserve Bank or other organization operating as a clearing house for automated entries. The ACH processes entries between an originator and receiver.

ACH Association- An organization formed by financial institutions to regulate and support the exchange of electronic transactions among member institutions.

ACH Credit- A transaction through the ACH network originated to pay a receiver (deposit funds into an account).

ACH Debit- A transaction through the ACH network originated to remove funds from the receiver (withdrawal from account).

Addenda Record- An ACH record type that carries the supplemental data needed to completely identify an account holder(s) or provide information concerning a payment to the Receiving Depository Financial Institution and the Receiver.

ANSI X12- A communications format for electronic business data interchange established by the American National Standards Institute, a voluntary body supported by the American Bankers Association.

ATM- See Automated Teller Machine.

Authorization Agreement- A written agreement signed by an employee or customer to allow the posting of ACH transactions to his or her account.

Automated Deposit- A deposit made directly to an account at a depository institution through the ACH network (i.e., payroll deposits, social security payments, and retirement benefits).

Automated Teller Machine- A computer terminal to dispense cash, accept deposits and loan payments, and enable a financial institution's customer to order transfers among accounts and make account inquiries.

Banking Day- Any day on which a participating financial institution is open to the public during any part of the day for carrying on substantially all its financial functions. With reference to an automated clearing house, any day on which the appropriate facility of the clearing house is being operated.

Batch- A group of records or documents considered as a single unit for the purpose of data processing.

Cash Concentration and Disbursement (CCD)- A format for ACH payments.

Customer Initiated Entry (CIE)- These are ACH entries initiated by a consumer through direct contact with an originator such as a bill payment system.

Central Information File (CIF)- A master file maintained by the ACH containing information on each depository financial institution. This file includes the depository financial institution's name, transit routing number, address, settlement and delivery information and output medium requested.

Clearing House- A voluntary association of depository institutions that facilitates the clearing of checks or electronic items through the direct exchange of funds between members.

Company- A business entity which creates paperless entries for introduction into the ACH network.

Composite Receivers' File (CRF)- A file listing all depository financial institutions qualified to receive ACH entries. Call your association office to subscribe. The CRF is available from the FRB as magnetic tape for direct computer input, or on microfiche.

Corporate Trade Payment (CTP)- A payment made between corporations through the ACH network.

Corporate Trade Exchange (CTX)- An ACH payment program for corporate to corporate payments.

Customer (Receiver)- A natural person(s) that maintains an account at a Depository Financial Institution. A customer may authorize a financial institution to debit/credit his or her account in response to an ACH entry.

Data Base- A collection of records stored electronically.

Data Encryption Standard- A technique by which a message is scrambled into an indecipherable stream of bits for transmission.

Data Transmission- The electronic exchange of information between two data processing points (computers).

Day Cycle- The first scheduled time for the Federal Reserve system's interregional transmission of data from Originating ACHs to Receiving ACHs. Also referred to as the "day time window".

Descriptive Statement- A bank account summary that contains information concerning one or more entries for which no separate item is enclosed. ACH entries necessitate some form of descriptive statement unless a substitute enclosure document is produced by the financial institution. Minimum reporting requirements are defined by Regulation E.

DFI- Depository Financial Institution.

Direct Debit- A method of ACH collection used where the debtor gives authorization to debit his or her account upon the receipt of an entry issued by a creditor.

Effective Entry Date- The date placed on an ACH transaction by the Originator of the transaction - it is normally the date the originator intended the transfer to take place.

Electronic Benefits Transfer (EBT)- Government benefits distributed electronically through Point of Sale (POS) Terminals and Automated Teller Machines. Benefits can include Aid to Families with Dependent Children, Aid to the Aged, food stamps and child support payments.

Electronic Federal Tax Payment System (EFTPS)- Beginning July 1, 1997, employers who made more than $50,000 in employment tax deposits in 1995 must make their tax payments by electronic funds transfer. Employers are required to enroll to use the EFTPS. They must choose to use either the ACH Debit or ACH Credit method for deposits.

Electronic Funds Transfer- A generic term used whenever money is moved without the use of a check or draft.

File Header- The first record of an ACH file containing information necessary to route, validate and track the ACH contained within the file.

Funds Availability- The time at which funds associated with paperless entries have been made available to the customer.

Intercept Point- An institution or computer service company designated to act on behalf of another institution to receive and/or send ACH entries.

Interregional Exchange- The exchange of ACH entries through more than one ACH, to financial institutions throughout the United States.

Intraregional Exchange- The exchange of ACH entries between two financial institutions within the same Federal Reserve zone.

Memo Posting- A notation posted to an account which indicates credit funds will be posted, but have not yet been posted to the account.

Machine Transfer Entry (MTE)- ACH entries initiated by a consumer through direct contact with an originator, including automated teller machines.

National Automated Clearing House Association (NACHA)- A body which oversees all ACH activities and procedures and is composed of all local ACHs.

Night Cycle- The second scheduled time for interregional transmission of data from Originating ACHs to Receiving ACHs. Also referred to as "nighttime window."

Originating Depository Financial Institution (ODFI)- A member institution which is responsible for the origination of ACH transactions. This institution may deposit items directly with an ACH or may work through a processing center which is the actual sending point.

On-Us Entries- Entries on an ACH file that belong to the originating financial institution. These entries may be stripped from the file and posted internally before a file is sent to the ACH.

Originating Company- An organization or company that produces an ACH file and delivers it to an ODFI for introduction into the ACH network.

Prenotification (Prenote)- A zero dollar entry that must be sent through the ACH at least ten calendar days prior to any live entries affecting an account at a receiving institution. The prenotification (prenote) allows the receiving institution to validate entry information.

Processing Day- Any day that a member institution is open to the public to conduct business, or that an ACH facility is being operated.

Participating Depository Financial Institutions- Any financial institution that is authorized to originate/receive ACH entries.

Receiving Depository Financial Institution (RDFI)- A receiving financial institution is an ACH transaction's final destination. The receiving financial institution may receive the items directly from an ACH or may work through a processing center, which is the actual receiving point.

Receiving Point- Any site where entries are received from an ACH for processing. This may be the member financial institution, its data center, or a data processing service authorized to receive entries on behalf of a member institution.

Regulation E- Federal regulations governing electronic funds transfer.

Remake- A replacement file generated upon request because an original file was unprocessable for some reason.

Returned Item- An ACH entry that has been rejected by a receiving financial institution because it is non-postable.

Reversing Entry- A file created by a sending point to completely cancel a previous file or entry because the previous file or entry was in error for some reason. Used extensively with duplicate entries.

Sending Point- A processing site that sends entries to an ACH. This may be a member institution or a data processing service operating on its behalf.

Settlement- The process of accounting for dollar transactions processed through the ACH. There is a daily settlement, which occurs directly in the case of Federal Reserve member financial institutions unless those financial institutions designate other members to settle in their behalf. Non-members of the Federal Reserve System must settle their accounts through a member of the Federal Reserve System.

Settlement Date- The day on which settlement occurs, i.e., funds actually change hands as a result of an ACH entry.

Standard Entry Class Code- A 3 character code within an ACH Company/Batch Header Record to identify the payment types contained within an ACH batch, (e.g., ARC, CCD, CIE, CTP, CTX, MTE, POS, PPD or WEB).

Statement of ACH Activity- The advice prepared by the ACH stating the number of items and dollar value of an ACH file.

Trace Number- A number assigned to every ACH entry by an originating institution that uniquely identifies that entry with a specific ACH file. First eight digits of the trace number are transit/routing number of ODFI and last seven digits are sequence numbers assigned by the originator.

Transit Routing Number- A nine digit number (eight digits and a check digit) that identifies a specific financial institution. These numbers are assigned by the Rand McNally Corporation and are listed in its annual publication Key to Routing and Transit Numbers.

Uniform Commercial Code Article 4A (UCC 4A)- Uniform Commercial Code (UCC) is a comprehensive body of state law governing commercial transactions. Article 4A covers certain funds transfers, including ACH credit transactions not subject to the Electronic Funds Transfer Act.

Warehousing- The ability of an originating institution to receive 1 file from a customer/company ahead of the effective date and hold it for release to the ACH on the effective date or for a receiving financial institution to receive entries ahead of the effective date and hold them without posting until the effective date has been reached.

Wholesale Credit- A credit transaction originated or received by a non-consumer, i.e., a credit transaction to a "business account".

Window- A predetermined period in time in which an exchange of information and funds can take place.

Copyright © 2003 OfficeTeller.com | Privacy Policy | Affiliates


For more information:
(866) 927-7180



© Copyright 2005 OfficeTeller, Inc.. All Rights Reserved.