check image interchange

The transmission of digitized images of checks between banks as part of the check clearing process. Since each check image requires approximately 40,000 bytes, images are not expected to replace paper checks soon. The first likely use will be as part of notification from one bank to another when the bank on which a large-dollar check is drawn decides not to honor the check and desires to provide the image of the check to the bank which originally accepted the check so that fraud or other problems can be rapidly investigated. Currently such notification is done by phone or Fed Wire. See presentment. (See clearing and Fed Wire in the hard copy dictionary.)

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