Substitute Checks
What Is a Substitute Check?
- It is a specially formatted paper copy of the electronic image of an original check used by banks and considered a legally valid form of payment.
- It must have the front and back image and MICR information of original check.
- The base stock paper and other specifications (perforations, check size) must be within the industry standards for regular checks.
- Substitute checks are also known as Image Replacement Documents. (IRD)
Substitute Checks
- 24# security paper
- Acts as a replacement of an original check
- Substitute checks can be transmitted electronically - regular checks can't.
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