The check, or an image of the check, is delivered to the bank on which the check is drawn for presentment, which is a formal request for payment. If the check is physically delivered, it may take an involved route through intermediary banks to get where it's going. If an image is forwarded instead, its route may be more direct, and is likely to take less time. In either case, unless the check is not paid, the bank that took the check for deposit does not get a report. The check collection system operates on an exception report basis.|
The bank accepting the check for deposit has to make the funds from the check available for withdrawal under a specific regulatory schedule, regardless of whether it knows the fate of the check at the paying bank. If the check is returned unpaid and the depositor has used all or part of the funds, the depositor remains responsible for paying the funds back to the depositary bank.
Published on BankingQuestions.com 9/04/08