Number: RL31591
Title: Electronic Banking: The Check Truncation Issue
Authors: Walter w. Eubanks, Government and Finance Division 
Abstract: The clearing process for checks is more expensive than other methods of payment which are cleared electronically, such as credit cards and Internet banking. The Check Clearing for the 21st Century Act (H.R. 5414) would eliminate the requirement to physically return the original checks to the paying bank. On April 3, 1002, the Senate held its first hearing on the Feds Check Truncation Act proposal that was sent to banking committees of both Houses in December 2001. On April 8, 2003, the Subcommittee on Financial Institutions and Consumer Credit of House Financial Services Committee held a hearing on H.R. 1474. On May 21, 2003, the full Committee amended H.R. 1474 and ordered it to be reported by voice vote.
Pages: 12
Date: Updated November 8, 2003