Check 21 Finds Smooth Rollout at Banks

The deadline for meeting the requirements of a new law requiring financial institutions to prepare for electronic check processing came and went last week. There were no immediate glitches, and bank officials do not expect any down the road.

Still, banks and credit unions did need to prepare for the new law, known as Check 21. Preparations included updating internal computer systems — or, more often, ensuring that vendors had theirs ready to go — training staff on the nuances of the new law and informing customers about how the law will affect them.

Financial institutions have had these details handled for quite some time. A bigger question is whether bank customers, including businesses, have faced the fact that the new law quickens check processing and they will need cash immediately in their accounts to cover the checks they write.

“Every bank is up and running with this,” said Bruce Spitzer, spokesman for the Massachusetts Bankers Association. “They have been prepared for a year. The industry is in the habit of adopting new technology and preparing for it. Consumers and businesses are the ones that will need to change quickly.”

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