[Hurricane Andrew]

Checks are processed by the Federal Reserve, not the banks!

That is incorrect. The Federal Reserve processes some checks, but not all. Many banks, especially those close to one another and virtually all large banks have "direct presentments", in which they bypass the clearing agents. Also, many community banks (such as the one I work for) share regional data-centers that act as mini-clearinghouses. There are also larger regional clearinghouses that bypass the Fed. Part of the reason is that the Fed is generally the most expensive of the clearing mechanisms available.

[maui_hawaii]

I am glad to have a small community banker here to help us big bad evil bankers out :o)

Small or big, banks are businesses. We are not doing things as a public service as many want it done. True we are regulated, but that doesn't make us public property.

Small or large we are entrepreneurs.

All in all though, Check 21 will be good for large and small banks, and will better serve the public at large, including your customers and mine.

[blackdog]

And thus every check I flew was a fed system document. I had just assumed that since the delivery vans met the plane with bags marked for each fed city that it was how they processed everything. Kind of like the Federal Express model.

I guess you are saying those vans also would make local stops after the planes were met with the bags routed for local banks? Makes sense. I guess that's why when you pay your bills for satellite television or credit cards, the PO Box is not too far away even though the company is? I guess they maintain PO Box's and an agent in every region in order to speed up the processing time at minimal expense.