Dusty Johnson: “I am proud to sponsor the Check Truncation Act, which will be a significant step in improving the Nation's check payment…”

“I am proud to sponsor the Check Truncation Act, which will be a significant step in improving the Nation's check payment system. The Act improves America's check payments system by allowing banks to exchange checks electronically. Current law requires banks to physically present and return original checks, a tedious, antiquated and expensive process. This legislation will also reduce infrastructure costs for banks, allowing for more flexibility and greater cost savings for the consumer. In the days following September 11, 2001, when planes across the country remained grounded, banks were forced to take drastic steps to ensure the shipment of checks from bank to bank. Check payments across the country were delayed, which opened up possibilities for processing errors and fraud. Electronic payments, on the other hand, continued to be processed in a safe and timely fashion during the crisis. Processing challenges confront banks in my State of South Dakota every winter. Deep snowfalls and vast distances between small-town banks and processing centers add significant costs to physical transportation of checks. These costs trickle down to consumers, and everyone ends up paying the price of our outdated system. I am proud to introduce this legislation, which would help to ensure the financial stability of our system in the event of another attack, and would increase its efficiency day-to-day.”