Although Check 21 is effective for financial institutions on October 28^th, 2004, not all consumers and small businesses will see changes immediately. Some financial institutions will be early adopters of new check imaging technologies, and others will implement changes more gradually.

For Financial Institutions Check 21 will impact every financial institution in one way or another, since they must be ready to accept check images from other financial institutions. It is essential that financial institutions understand and adapt to the new regulations and requirements, and make necessary adjustments to their check processing systems.

Top priorities include: Educating employees and customers about Check 21 Preparing internal check operations to receive or accept substitute checks Communicating to customers about their protections under Check 21 Planning for the future on how Check 21 could be implemented

For Consumers Consumers won't see a difference when they write checks, but they'll notice the effects of processing changes under Check 21.

Checks will clear faster. For example, a check deposited in New York from a bank in Los Angeles may be posted in a matter of hours rather than days. With faster check clearing, financial institutions may be able to detect fraud faster. Consumers will likely have more options in viewing bank statements electronically

For Small Businesses Check 21 does not require small businesses to change the way they make deposits or accept checks from customers. All checks drawn on U.S. financial institutions are eligible for electronic processing with Check 21. Changes small businesses may see include:

A faster return and collection of checks Quicker access to revenue from customers who pay by check. Alternatives for returning checks in monthly statements, providing options for secure storage of images or substitute checks. Some financial institutions will use Check 21 as the opportunity to promote new services or deposit options designed for small businesses.