Electronic check conversion is sometimes confused with innovations associated with the Check Clearing for the 21st Century Act (commonly known as Check 21). This very important law will ultimately bring about fundamental changes to the check-collection system, because it facilitates the adoption of check truncation and electronic collection of checks through the action of market forces.
I would note, however, that even before Check 21 became law, one out of every five checks collected through the Federal Reserve Banks was being presented electronically. Check 21 contains consumer protection provisions that differ from those provided under electronic check conversion. But the substantive rights of consumers are very similar whether they are derived from check or electronic fund transfer law.