Combining Remote Capture and IRD Printing
Non-image enabled financial institutions can take advantage of the Check 21 Law by partnering with Independent Software Vendors (ISVs) and VARs. Rural, regional and community banks can compete with the large, fully image enabled banks.
Until now, the regional and community banks had a geographic advantage. That local geographic advantage is going away. The larger banks are moving outside of their geographic “footprint” and pursuing customers that currently have their business with local financial institutions. Now a corporate customer, retail establishment, non-profit or small business can scan their checks and send the electronic file to any financial institution that is set up to accept that type of file. This paper will describe the three simple processes the non-image enabled financial institution can implement to compete against predatory competition without the cost of becoming fully image enabled.
The practical implementation of Check 21 is that bank customers can remotely scan paper checks, convert them to electronic files, and transmit those electronic files to the bank via various means. Fully imaging enabling a financial institution can be a major change in the operations of the bank. A financial institution can be partially image enabled and quickly, easily and economically reap the benefits and achieve a quick Return On Investment (ROI) by implementing three processes:
- Remote check image capture
- X9.37 file, Image Cash Letter creation
- Valid IRD printing
First, it is very important to capture and verify the information at the time of capture when imaging checks. Banks should focus on the accurate reading of MICR data from check images verifying the captured data is accurate at the time of capture.
Second, a cash letter is an inter-bank transmittal letter that accompanies cash items sent from one bank to another. The X9.37 file is the electronic image version of the cash letter. A bank may be receiving X9.37 files from many different remote capture sites. These files must be checked for format and content validity.
The third and final process for the non-imaged enabled bank is to convert the Image Cash Letter (X9.37 file) into valid IRD. The paper IRD can be processed as a normal paper check. Software composes the IRD by assembling the data, creates the MICR line, fulfills the static endorsements, graphically lays out the components, ensures the alignment and sends the information to the printer.
A bank does not have to be fully image enabled to take advantage of the Check 21 law to provide better service to their customers. By implementing three processes any financial institution can take advantage of the Check 21 law. These processes and applications are available through All My Papers business partners. View the complete white paper;
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