What is a substitute check?

What is a substitute check?

• A. A digital image that represents a check
• B. A check printed on plastic
• C. A paper rendition that includes the original image of the check
• D. An electronic funds transfer

Answer: (C)

A substitute check is a physical, paper reproduction that serves as the legal equivalent of the original check after it has been converted to an electronic image under Check 21. It must include a clear image of the front and back of the original check and carry the MICR line information, so banks can process it just like the original. That’s why the option describing a paper rendition that includes the original image is the correct choice—it reflects the required tangible copy that can stand in for the original check. A digital image alone isn’t a substitute check, a plastic-printed check isn’t it, and an electronic funds transfer is a different payment method.

A substitute check is a physical, paper reproduction that serves as the legal equivalent of the original check after it has been converted to an electronic image under Check 21. It must include a clear image of the front and back of the original check and carry the MICR line information, so banks can process it just like the original. That’s why the option describing a paper rendition that includes the original image is the correct choice—it reflects the required tangible copy that can stand in for the original check. A digital image alone isn’t a substitute check, a plastic-printed check isn’t it, and an electronic funds transfer is a different payment method.