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How Check 21 saved the U.S. Payments System over $3 Billion in 2010.

A recent paper released by the Federal Reserve Bank of Philadelphia estimates the cost savings to the U.S. payment system resulting from implementing Check 21. Check 21 has effectively eliminated the processing and presentment of original paper checks over multiple days. By shifting to electronic collection and presentment, the Federal Reserve reduced its per item check processing costs by over 70%, reducing estimated overall payment system costs by $1.16 billion in 2010. In addition, payment collection times and associated float fell dramatically for collecting banks and payees with consequent additional savings in working capital costs of perhaps $1.37 billion and consumer benefits of $0.64 billion.