Key Bank USA Informative - Check 21
Someone recently posted that they were told checks clear in one day. Well since Check 21 went into effect that is no longer the case in many situations. Digital images are taken of checks and funds deducted sooner then later.
The Check Clearing for the 21st Century Act (or Check 21 Act) is a United States federal law, Pub. L. 108-100, enacted into law October 28, 2003 by the 108th Congress. It took effect one year later, on October 28, 2004. The law allows the recipient of the original paper check to create a digital version of the original check—called a "substitute check," thereby eliminating the need for further handling of the physical document.
Consumers are most likely to see the effects of this act when they notice that certain checks (or image of) are no longer being returned to them with their monthly statement even though other checks are still being returned. Another side effect of the law is that it is now legal for anyone to use a computer scanner to capture images of checks and deposit them electronically, a process known as remote deposit.