Check truncation

The conversion of data on a check into an electronic image after a check enters the processing system. Check truncation eliminates the need to return canceled checks to customers.

To process payments faster and more efficiently, many banks no longer transport paper checks, but replace them with digital images - called substitute checks - that can be transferred electronically, in a system called check truncation.

When you receive your account statements, the bank may send you substitute checks in place of cancelled checks, each formatted on a separate piece of paper, with the words "This is a legal copy of your check" appearing next to the image.

Most banks destroy original checks once they've archived the substitutes. However, many banks send out either a line item statement or an image statement with photocopies of multiple cancelled checks on each page.

If you need to verify a payment, you can request a substitute check from your bank. There may be a fee for this service.