The act aims to drag the check system into the 21st century by promoting the use of electronic check images instead of physical checks. This transition allows for faster processing times, reduced costs associated with handling and transporting paper, and improved efficiency for both financial institutions and consumers. The report details the mechanisms for securely creating, transmitting, and storing these digital check images.

While embracing technological advancement, the act prioritizes consumer protection. It outlines clear guidelines for banks to follow when presenting truncated checks, ensuring consumers have access to necessary information and recourse in case of errors. Additionally, the legislation addresses concerns related to privacy and security, setting standards for safeguarding sensitive financial data in the digital realm.

Recognizing that widespread adoption is crucial for the success of check truncation, the act addresses potential roadblocks. It seeks to harmonize state laws and federal regulations related to check processing, creating a consistent framework across the country. The report highlights the collaborative efforts between Congress, regulatory bodies, and the banking industry to ensure a smooth and efficient implementation process.