Check Imaging for Remittance Processing

New check image processing technologies can be used to eliminate a separate check scanning step in your remittance processing systems. In the past, check image processing technology could only process checks captured by the traditional check scanner. Now technology can process check images captured on flatbed scanners, from images taken with cell phone cameras, and now even from a full page remittance voucher forms. In short, remittance capture can be converted from a two pass process to a single scan.






In wholesale remittance processing, payments are often received as a Remittance Vouchers. This is a full page multi-part document that will contain a remittance advice portion and the actual check.

The check can be located in the top, middle, or the bottom tear off portions. Today remittance processors will process this voucher two different times:

  • A full page scan of the entire voucher is performed to capture the remittance advice information in the transaction.
  • The processor will then separate the checks from the voucher and scan the checks to capture the MICR and images required to clear the payment. The capture systems will need to reconcile the check payment instruments with the payment transactions.

Using check image identification technology it is now possible to scan the voucher one time only.

This technology will locate the front image of the check within the payment voucher image and extract it and produce a Black and White TIFF image compliant to image exchange standards.

The rear portion of the image can be extracted from the back image of the voucher using the known location of the front.

Capturing the check images at the same time as the entire transaction will also simplify the reconciliation process.

Scanning costs can also be reduced in retail remittance processing systems.

Processors here will often perform a scan of each transaction that can include the remittance document, checks, and correspondence. They will perform a first pass capture of everything and then separate the checks for a second pass. Check location software can be used to identify and process the checks in this scanning stream of checks and non check images eliminating the need of a second capture pass.

The check locating software will also locate and extract standalone check images captured from a page scanner.

Locating the rear image of the check from a full page image has its challenges. If the image is light with no contrast to the background of the scanner the rear image will appear as a blank document.

As there is no endorsement data yet present, there is an option to electronically generate a rear image and and electronically imprint a deposit endorsement such as “Deposit to the Account of ….”.

This option can also be used to eliminate the need for duplex scanning that can further reduce scanning and processing costs.

All My Papers (AMP) provides software server technology for the processing of check images to Remittance Processors, Remote Deposit Capture software vendors and to the internal software development teams of financial institutions.

AMP products include software development tool kits and applications that provide the ability to create, view, edit, format, sort, merge, print and process check Image Cash Letter files.


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