Beginning October 2004, the way banks process checks has changed as the Check Clearing for the 21st Century Act (Check 21) took effect. Check 21 includes a set of new industry standards that allow banks to process checks more efficiently.

In fact, you may have already seen some substitute checks, which are a component of this new system, show up in some of your recent account statements.

We have created this page to answer your questions about those strange-looking checks and to explain other changes you may notice.

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What is Check 21?

The main purpose of the Check Clearing for the 21st Century Act (Check 21) is to make the U.S. banking system more efficient by eliminating the need to physically transport paper checks between banks for payment.

Beginning on October 28, 2004, banks are allowed to process checks electronically by creating digital images of original checks. This shortens the check payment cycle and makes the process more efficient.

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How does Check 21 affect me?

There are two possible changes you may have experienced since Check 21 went into effect:

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What is a Substitute Check/IRD?

An IRD, or substitute check, is a copy of an original check generated from an electronic image that may be used in the check payment process once Check 21 takes effect.

Once checks are converted into IRDs, they are still considered to be checks and will have the same legal standing as the original checks you write.


An example of a valid IRD

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How can I learn more about Check 21?

Armed Forces Bank is committed to helping you understand Check 21 and answering any questions you have. Please contact an Armed Forces Bank Customer Service Representative to learn more about how Check 21 will affect your Armed Forces Bank accounts.

For more general information about Check 21, visit the Federal Reserve Bank's Check Clearing for the 21st Century page.