Asked by Garrett Brown on Jun 15, 2024
Verified
Which of the following is true about electronic check presentment?
A) The UCC is silent as to electronic check presentment.
B) The individual who encodes the information from the check does not need to warrant that the information is correct.
C) Only the actual check may be transmitted for payment between banks.
D) Banks may transmit substitute checks, instead of the actual checks, for payment between banks.
E) It is not possible process checks on the day of deposit.
Electronic Check Presentment
A process that allows financial institutions to exchange digital images of checks instead of physical checks for faster processing.
Substitute Checks
Digital or paper reproductions of original checks that are legally equivalent for processing payments.
UCC
A complete collection of regulations that oversee business dealings within the United States, known as the Uniform Commercial Code.
- Identify the criteria necessary for electronic check presentation and the electronic processing of checks.
Verified Answer
PS
Philo SultanJun 18, 2024
Final Answer :
D
Explanation :
Electronic check presentment allows banks to transmit substitute checks, instead of the actual checks, for payment between banks. This process is facilitated by the Check 21 Act, which enables banks to handle more checks electronically, speeding up the check clearing process.
Learning Objectives
- Identify the criteria necessary for electronic check presentation and the electronic processing of checks.