Senate OKs Check Truncation Act

The Senate voted to approve the Check Truncation Act, which will let credit unions and banks process all checks electronically. The Senate version must now be reconciled with a separate, but almost identical version of the bill pass by the House earlier this month. The bill is expected to provide substantial cost savings for credit unions by allowing them to eliminate handling and processing of paper checks. Credit union members who want to receive paper checks would still be able to request a substitute check, or paper receipt of the transaction under the bill.