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Business Definition for: check safekeeping
Dictionary of Banking Terms
check safekeeping

service in which a bank holds, or safekeeps, cancelled checks or a copy of the checks, instead of returning them to the check writer. The customer receives a descriptive statement listing checks paid, the amount, and to whom they were paid. The major incentive for offering safekeeping is savings in labor costs and postage associated with statement preparation and mailing. Also called check retention.

See also truncation , microfilm
Related Terms:
truncation

shortening of processing steps, in an effort to reduce paperwork and operating costs. For example, check truncation, or check safekeeping, where the bank holds the checks or microfilm records of them in a central file.

microfilm

photographic process that copies checks and other documents for record keeping and storage. Microfilming of bank records is being replaced gradually by document image processing, in which physical documents are converted into computer readable digital images that are stored on optical laser disks for rapid retrieval.

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