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Bureau of Financial Institutions
OTHER PFR AGENCIES
Electronic check conversion is a process in which your check is used as a source of information-for the check number, your account number, and the number that identifies your financial institution. The information is then used to make a one-time electronic payment from your account-an electronic fund transfer. The check itself is not the method of payment.
If you don't want your check to be used for electronic check conversion, you may have to provide another form of payment (for example, cash, debit card, or credit card).
At least three days before the date of the scheduled electronic transfer, notify your financial institution that you wish to place a stop payment on this transfer. You will need to know the exact dollar amount. (If done orally, the financial institution may request written confirmation). Check your contract with the health club, you may still owe them money if you agreed to a long term membership or promised to give them an agreed upon notice (30 days, 60 days, etc.) prior to termination.
Its official name is the Check Clearing in the Twenty-First Century Act. It enables a more electronic check collection system for the country, taking some of the costs and delays of paper processing and transportation out of the check system. It does not require financial institution to change the way they collect checks. However, it gives them a new option, and in doing so it does require institutions, and their customers, to accept paper reproductions of their original checks. It may decrease the time it takes for a check to clear your account. Check 21 is scheduled to go into effect in October 2004.
Last Updated: February 14, 2012
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