You already know in many ways how your checking account works. You write paper checks, withdraw money from an automated teller machine (ATM) or pay with a debit card. Your paycheck might go by “direct deposit” into your account, or you might deposit checks at one of our banking centers.

But recently, you might have noticed changes in the way your account works. Checks you write may be “clearing” – meaning the money is taken out of your account – faster. Some checks you write might be listed as “Other Withdrawals”, “electronically processed” or “ACH” (Automated Clearing House) on your account statement. You may also be seeing “substitute checks” on your bank statement.

Checks are being handled in some new ways these days and those changes can affect how you handle your money. Some checks are now processed electronically and the original paper checks are destroyed. Additionally, other checks may be imaged, so we receive only a copy of your original check.

Electronic processing continues to increase the speed of the process, but one thing that will not change is your continued right to dispute any mistakes and clear up problems with your account, whether you have the original check or not.

In the past, when a paper check was written, it was transported physically from bank to bank before the money was taken out of your account. Now that many checks are being processed electronically, money may be taken out of your account faster. To avoid bounced checks and associated fees, you must be sure you have enough money available in your account to cover each check when you write it.

A check can be processed in several ways:

You will probably be able to tell how your check was processed after the fact by looking at your bank statement. Checks that now show up on your statement in the “Other Withdrawals” category are usually items that have been converted and processed by ACH (either Point-of-Sale or Lockbox). Checks processed under the Check 21 Act have images that show up on your statement appearing smaller than usual and have the statement, “This is a legal copy of your check. You can use it the same way you would use the original check.”

Generally speaking, if you notify us promptly about an error or transaction you did not authorize, you will not be held responsible. And if you notify the bank within 30 days of when you received your bank statement, you have met the requirements of reporting promptly for most institutions. Refer to your account agreement for specific information about disputing errors.

If you have questions, please contact us at 972-716-7160.