check truncation

check truncation definition - business

check truncation

Removing the original paper checks from the collection or return process. Financial institutions do not return canceled checks to an account holder, who can obtain a microfilmed copy if the need arises. Check truncation is designed to improve the efficiency of the nation's payments system. Also called truncation. See also substitute check.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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