Substitute Cheque

Cheque Truncation
Cheque truncation is the process of converting a paper cheque into a digital image for electronic transmission to the drawee bank rather than physically presenting it. This often includes creating a substitute cheque or image replacement document that serves as a legal equivalent.
Substitute Cheque
A substitute cheque, also known as an image replacement document (IRD), is a negotiable instrument used in electronic clearing mechanisms to improve the efficiency and speed of check processing.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.