Federal Law Creates Electronic Checks
A new federal law will create electronic checking next month something banks and credit unions have labored over all summer.
Wednesday, September 29, 2004
When you pay with or cash a check, that physical slip of paper actually is shipped around the country for more processing … which is why it can take days to clear. In the wake of 9/11, when air traffic halted, so then did the flow of money. So Congress passed a new law that banks and credit unions will implement on October 28th in Sacramento and elsewhere. It authorizes an electronic substitute for that physical check to take its place. With business and individuals writing 42 billion checks each year, the law assures that money will move in the wake of any other terrorist incident.