 | The examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject. (September 2021) |
A substitute check or cheque, also called an image cash letter (ICL), clearing replacement document (CRD),[1] or image replacement document (IRD),[2] is a negotiable instrument used in electronic banking systems to represent a physical paper cheque (check). It may be wholly digital from payment initiation to clearing and settlement or it may be a digital reproduction (truncation) of an original paper check.
Software providers have developed[3] "Virtual Check 21" standards within electronic banking systems which allows creation and submission of demand draft documents to the bank of deposit.
Standards may include:
The beginnings of substitute checks in the United States were formalized by the Check 21 Act which came into effect in 2004.
