This process would eliminate the need for a bank to run its entire presentment from the previous day through its sorters to pull the small number of checks that need to be returned unpaid.
We believe that image-supported check truncation will become more cost effective for a growing proportion of banks as technology improves and the cost of electronic transmission declines relative to the cost of physical transportation. Beyond operational efficiencies, the draft Act could lower the hurdles that banks now face in moving from physical to electronic processing of checks.