Substitute check

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A substitute check or cheque, also called an image cash letter (ICL), clearing replacement document (CRD),^[1] or image replacement document (IRD),^[2] is a negotiable instrument used in electronic banking systems to represent a physical paper cheque (check). It may be wholly digital from payment initiation to clearing and settlement or it may be a digital reproduction (truncation) of an original paper check.

Software providers have developed^[3] "Virtual Check 21" standards within electronic banking systems which allows creation and submission of demand draft documents to the bank of deposit.

Standards may include:

• Remotely created checks (RCC)
• X9.37 files

The beginnings of substitute checks in the United States were formalized by the Check 21 Act which came into effect in 2004.

• Remote deposit
• Cheque truncation

• Understanding Laurentian Bank Cheque