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Reference.org
Cheque truncation
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<p>Cheque truncation is a <a href="/facts/Cheque_clearing/pbU9sA1j">cheque clearance</a> system that involves the <a href="/facts/Digitization/RRdE9Ma9">digitization</a> of a physical paper <a href="/facts/Cheque/AmS09zUa">cheque</a> into a <a href="/facts/Substitute_check/pw3UGzWp">substitute electronic form</a> for transmission to the paying bank. The process of cheque clearance, involving data matching and verification, is done using digital images instead of paper copies. </p><p>Cheque truncation reduces or eliminates the physical movement of paper cheques and reduces the time and cost of cheque clearance. Cheque truncation also offers the potential reduction in settlement periods with the electronic processing of the cheque <a href="/facts/Payment_system/GnsE8Ftn">payment system</a>. </p>