A new check clearing policy will eliminate float time for checks and is aimed to increase efficiency in the banking system.

The Check Clearing for the 21st Century Act – or Check 21 – which Congress passed last October, enables banks to handle more checks electronically.

The act, effective Oct. 28, makes check processing faster and more efficient, according to the Federal Reserve Web site.

The act allows banks to create electronic copies of the checks called “substitute checks.” The substitute checks will be used in transactions between banks, said office manager Kirk Pearson at Fifth Third Bank, 2707 Sycamore Road.

“The major advantage of it is to eliminate float,” Pearson said.

Under the current system, banks have to load checks onto airplanes or trucks and transport them to other banks, Pearson said. Though banks try to do this as quickly as possible, it often resulted in a delay of several days for a check to clear.

“Now, when you deposit a check it takes a couple of days to clear,” he said. “I know a lot of people write a check today and then make the deposit on Tuesday,” he said

Not all bank customers use float time when writing checks.

“I’ve never taken advantage of float time,” said freshman undecided major Eleni Tsapralis.

Junior corporate communication major Kevin Lucca said he also does not take advantage of float time.

“I never write a check unless I know I can cover it at the time I’m writing it, so I never really needed to take advantage of the float time,” Lucca said.

As debit cards have increased in popularity, some customers do not use checks at all.

“I like using the debit card – it keeps me honest,” said Dave Guetschow, a senior mechanical engineering major.

Many consumers use cancelled checks as proof of payment. The act will not change the way consumers use their cancelled checks as receipts, Pearson said. The electronic checks can be used in the same way paper or cancelled checks can be used.

Fifth Third Bank already uses electronic copies of checks instead of paper copies, he said.

Pearson likened any security concerns involving computer worms, viruses or hackers to the risks of a bank’s Web site.

“As far as I know, it is as safe as can be,” he said.