Check truncation refers to the process of converting a physical check into a digital image for electronic processing and clearing. This method enhances the speed and efficiency of check handling, reduces costs, and mitigates the risks associated with physical check transportation.
In banking, uncollected funds refer to the portion of a bank deposit made up of checks that have not yet been collected by the depository bank. This means that payment has not yet been acknowledged by the bank on which a check was drawn. Typically, a bank will not allow a depositor to draw on uncollected funds.
