Check 21

Frequently Asked Questions about Check 21.

In the weeks ahead, you'll be hearing about "Check 21," a new Federal law that takes effect October 28, 2004. In a nutshell, Check 21 (formally called the "Check Clearing for the 21st Century Act") allows banks to replace original paper checks with digital images of those checks. The law enables banks to create "substitute checks" from those digital images. Because you may begin to see "substitute checks" with your account statements after October 28th, we want you to know about this new process.

  1. Will the Check 21 law change the way I write and accept checks?

    No, it will have no impact on the way you write or use checks. However, if you receive cancelled checks with your account statement or if a check you deposited to your account is returned unpaid, you may receive a "substitute check" instead of the actual original. If you don't receive your checks back today, you may not notice any change.

  2. What does the law do?

    Currently, checks travel on trains, planes and automobiles during the clearing process. When Check 21 takes effect, banks will be able to send digital images of checks electronically, eliminating the need to physically transport paper checks. "Substitute checks" are paper copies created from electronic images of original paper checks.

  3. What does a substitute check look like?

    Please click here for a sample. Although it looks different, it includes all the information from the front and back of the original check and includes the statement: "This is a legal copy of your check. You can use it the same way you would use the original check."

  4. What if I need to show proof of payment using a copy of my cancelled check but have a substitute check instead?

    All businesses, government agencies, customers, service providers, and financial institutions are required to accept the substitute check as proof of payment. The substitute is the legal equivalent of the original.

  5. Will I still be able to get my cancelled checks back with my statement?

    Yes. Customers who currently have cancelled checks returned with their checking account statements will continue to receive them, but some of these items may be substitute checks.

  6. What happens to my original checks?

    Banks that convert checks to electronic images may destroy the original paper checks shortly after the images have been created, which means the originals would no longer exist.

  7. If a check I deposited into my account is returned unpaid, will I get the original back?

    You will receive either the original check or the substitute check. If an original check is returned unpaid to First Hawaiian Bank, the original will be returned to you. If a substitute check is returned to First Hawaiian Bank in place of the original, the substitute check will be returned to you.

  8. What happens if there is an error on my account involving a substitute check?

    For personal accounts, Check 21 requires that we provisionally recredit your account, usually within ten business days, for any substitute check you receive and dispute. Please review your monthly checking account statements and contact us immediately if you suspect an error. We will be providing customers with a disclosure statement containing details on provisional recrediting in cases of errors involving substitute checks.

  9. What happens if I have CheckStorageSM?

    If you have CheckStorageSM, where images of your cancelled checks are retained by the bank for safekeeping, First Hawaiian Bank will also retain images of any substitute checks that may have been paid from your account. Your statements will be unchanged. If you need a copy of a cancelled check, follow the same request procedures that you use today.

  10. Will the checks I write and deposit clear faster than they do today?

    Check processing will be faster under Check 21. Funds may be removed from your account sooner than in today's system, with less "float time." As always, make sure you have enough money in your account before writing a check. As more banks process checks electronically, an imaged check could literally go from the first bank where it was deposited to the last bank (where it is drawn) in minutes if each bank handling the check processes it electronically.

  11. What if I'm just not comfortable with this whole new system? Can anyone refuse to accept substitute checks?

    No. Once the Check 21 law goes into effect on October 28, 2004, it will apply to everyone -- all banks, customers, businesses (retailers and service providers), government agencies, law enforcement. The law has no exceptions.

  12. What are the benefits of Check 21?

    By eliminating the need to physically transport checks over long distances, Check 21 will reduce the vulnerability of the check payments system to disruptions, such as extreme weather and natural or man-made disasters. Our payments system will become more efficient and reliable.