What is a primary characteristic of check truncation?

A primary characteristic of check truncation is that it eliminates the need for paper checks. This process involves converting the paper check into an electronic format at the point of deposit, which allows for faster processing and more efficient handling of transactions. By capturing the necessary information from the check electronically, banks and financial institutions can process transactions without the physical check needing to move through the banking system. This leads to reduced operational costs and increased convenience for both consumers and banks.

While faster processing and simplified audits can be benefits of check truncation, they are not defining characteristics of the process itself. Check truncation fundamentally changes the way checks are handled, focusing on the electronic aspect rather than the physical movement of paper checks, which directly ties back to the elimination of the need for paper checks. The other options do not encapsulate the main feature of check truncation as effectively as this one does.