If you’re not familiar with the reasons and laws behind substitute checks, see our quick overview of Check 21:
What’s Not a Substitute Check?
There is some confusion about what is and what is not a substitute check. A simple photocopy or image of a check is not a substitute check under Check 21. In addition, a ‘converted’ check does not qualify as a substitute check. Converted checks are paper checks that get converted into electronic checks by businesses you write checks to.
Who Uses Substitute Checks?
Banks use substitute checks. As mentioned above, businesses that you write checks to do not create substitute checks. Because the substitute check is created at the bank, your transaction is subject to the laws that govern traditional check activity - not electronic transactions.
Identifying Substitute Checks
How do you know if an image of a check is really a substitute check? Look for the wording "This is a legal copy of your check. You can use it the same way you would use the original check."
If you have a substitute check, you can use it to document payments you’ve made as if it were the actual check you used.
Next, let's review some potential problems with substitute checks.
