On June 5, the House approved H.R. 1474 (Check Clearing for the 21st Century Act), “a bill to facilitate check truncation by authorizing substitute checks, to foster innovation in the check collection system without mandating receipt of checks in electronic form, and to improve the overall efficiency of the Nation’s payments system, and for other purposes.” Banks could eliminate the process of returning paper checks to customers each month, but would offer the option of a monthly transaction document.
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