Electronic Check Conversion IS NOT THE SAME AS Check 21 Substitute Checks

While both involve electronic processing, the processes differ.

Electronic Check Conversion works like this: When you give your check to a merchant for payment, the check is processed through an electronic system that captures your bank account information and the amount of the check. The check information is electronically presented (not the paper check itself) to your bank, and the Federal Reserve transfers money from your bank to the merchant’s bank. Your check is returned to you for in person payments, or for mail-in/drop box payments your check is destoyed.

The bottom line is: Electronic check conversion is an electronic fund transfer. The processed information will appear on your bank statement in an area with similar payments, like direct deposit of your paycheck, or debit card payments and withdrawals. Finally, Electronic check conversion has specific protections for errors and unauthorized transfers under the Federal Electronic Fund Transfer Act.

Federal Reserve Board:
General Check 21 Information
Check 21 FAQ