US checking system going all-electronic

A new law permits banks forgo costly paper cheque processing this
thanks to a new law called the "Check Clearing for the 21st Century
Act" (aka "Check 21").
In the US millions of paper cheques are delivered from one place to
another and after the events of 09/11 (11/09) the federal government
decided that a change is due.
Check 21 is intended to clear a path for electronic processing, cutting
transit time and costs.
It also is aimed at ensuring that the system is not paralyzed again as
it was after the 09/11 terrorist attacks.
Some consumer and fraud experts also have been sounding an alarm about
security risks posed by new electronic databases that could be
vulnerable to hackers.
The new law does not mandate electronic check-processing, but gives it
a jump-start by allowing banks and processors to replace paper checks
they receive with electronic versions. They can then transmit the
checks electronically to processors or banks equipped to take them, or
they can create what are being called "substitute" checks. Those are
specialized paper copies of the digital image for shipment to the
paying bank. Under the law, banks and processors must accept a
substitute check as though it was the original.