Description

X9 Image Clearing - Exception Manager is a Windows based enterprise application

for inclearing processing of all image cash letter (ICL) file based check items.

X9 Exception Manager is a complete image cash letter system for managing payment decisions on all inclearing items including Transit and ONUS from any clearing network such as the FRB or SVPCO, etc. or deposit channels such as Branch, ATM, Remote Deposit or Remittance Processing for your financial institution.

 X9Exception Manager Diagram

X9 Exception ManagerX9 Exception Manager is an application for automating and managing decisions regarding all check items contained in ICL files. These check items can be forward presentment checks and drafts.

Using MICR field data (transcodes, routing numbers and other data) contained in the ICL file, the software categorizes items and routes to the business unit responsible for making payment decisions.

Using configurable business rules, X9 Exception Manager can automate payment decisions and flag items to be reviewed by designated internal business groups. The efficiency gained can result in same day payment processing and return disposition.

X9 Exception Manager integrates with accounting, general ledger, check processing and image archive systems. This means there is no need to replace expensive core systems.

Benefits

  • Increases transaction throughput by enabling same-day payment exception decisioning and returns
  • Enables Check 21 processing for legacy item processing and payment systems
  • Provides improved float management with same day payment decisioning
  • Provides scalability to grow with the volume needs of large and medium size financial institutions and departments
  • Reduces technology risks by using standard database and file formats

Workflow with and without Exception Manager

Features/Functions

Product Functions

  • Processes all incoming check image cash letter files from

      - Exchanges such as Federal Reserve Bank, SVPCO, Viewpointe...

      - Deposit channels - branch, ATM, RDC, mobile and remittance 

  • Intranet-based GUI Interface for research
  • Automatic routing based on MICR and ICL metadata such as transcode, routing number, source,
  • Configurable routing to different internal business groups & users
  • Automatic scheduled processing for return items, general ledger entries, report generation.
  • Exception list interface for all flagged items

      - Review

      - Return

  • IRD Generation in either batch mode or ad hoc

Features

  • Auto import ICL files from major exchanges: FRB, SVPCO, Endpoint. Viewpointe, etc.
  • Auto import from deposit channels: ATM, Branch, Mobile, Remote Deposit, Remittance
  • Supports check payment types: Personal, Business, Drafts
  • Provides interface for review or return of flagged exceptions from core banking system
  • Automatic catagorization and routing (see Auto Routing tab) of items based on:

      - Routing number, account number, transcodes, dollar amount

      - ICL file metadata: type, source, channel

  • Configurable business-unit queues:

      - Loan departments, mortgage, business, credit card, AP, etc.

  • Automated scheduled processing for Return files, Reports, IRD Printing, G/L files
  • Intranet web-based applications for: 
      - Payment decisioning w/assignment of return reason
      - Item & Return research
  • User access based on roles/responsibilities
  • Image Replacement Document (IRD) generation
  • Print IRDs based on flags from core banking system or on demand
  • Supports 50+ ICL file formats
  • Configurable term image archive for forward & return items
  • Email notification of automated process status
  • Licenses for production, development, test and DRS environments
  • Report module with support for customer-defined reports
  • Duplicate item and file detection
  • Data integrity module - improved check image and MICR quality
  • Interfaces to core banking, accounting and other sytems:

      - External image archive interface

      - Check Clearing system interface

      - Accounting system interface

      - Other decisioning systems

 

Workflow

Financial organizations are looking for ways to become more efficient, reduce cash reserve requirements and decrease fraud risk. At the same time they have a huge investment in legacy check item processing software systems. How to deal efficiently with exceptions  (items that require some special processing or review), is a concern of every financial institution.

X9 Exceptions is the solution.

Workflow

Using X9 Exceptions application software, all in-clearing check items from image exchanges and deposit channels can be automatically routed for decisioning prior to the day one batch processing. That saves a day in reducing cash reserve requirements and fraud detection turning around returns in one day instead of two.

X9 Exceptions works with legacy check item processing systems by immediately processing the incoming image cash letter files. X9 Exceptions will work with the current system. No need to upgrade or change your legacy core processing systems. X9 Exceptions is compatible with Day 2 exception processing, general ledger systems and long-term image archive systems.

Key to achieving these efficiencies is the X9 Exception Manager Auto Routing feature which identifies, categorizes and routes exception items based on a configurable set of business rules. Some examples are shown below: The entire financial processing system becomes more efficient by automatically routing exceptions based on customizable rules and data.

X9 Exception Manager Auto Routing

Exception items are routed to relevant business groups such as loans, credit card processing, mortgage loans, accounts payable so that they can make can make informed payment decisions on day one.

X9 Exceptions can scale and work with small, medium or large financial institutions and is architected to easily scale to millions of daily transactions efficiently.

Using standard check image cash letter files, SQL databases and off the shelf reporting software, X9 Exceptions application eliminates the need for dependency on closed proprietary systems.

 

Architecture

arch diagram

X9 Exceptions is designed to seamlessly integrate with your existing check processing systems. The architecture image below illustrates the connections to your current system.

Process Flow without X9 Exception Manager

Process Flow with X9 Exception Manager

X9 Exceptions Manager Archetecture Showing Major Components and Interfaces

The design of X9 Exceptions is to “bolt on” to your system and maintain the current workflow and processes you have in place for non-exception items. X9 Exceptions will make your system more efficient in how it handles exceptions, processing most of them on Day 1 vs Day 2.

X9 Exceptions interfaces with your current item processing, accounting, image archive and exception processing software. This eliminates the need for a major software upgrade or replacing your current legacy system.

Because the exception processing is a self-contained module, implantation is quick and reliable with little impact on the original system. X9 Exceptions “talks” to all your current software and transfers the appropriate data about the exceptions through its multiple interfaces.

Screenshots

X9 Exceptions uses a browser based intranet system. User screens and actions are available through a browser interface that is secure and safe within your internal system. X9 Exceptions comes with a variety of standard screens that can be customized for your users and business groups.

 

Payment Decisioning Work Screen

screen3

 

Work Queue Summary Screen

screen2

 

Professional Services

X9 Exceptions is based on the X9 Image Clearing Platform from All My Papers. This platform is designed to provide flexibility and efficient customization. A detailed statement of work will be provided that details the implantation plan & schedule, business consulting, system build and testing, production deployment, support and training.

Available Professional Services

  • System requirements workshops
  • Installation & integration services
  • User training & manuals

Additional Services

  • Critical production support
  • Support hotline
  • Source code escrow

X9 Exceptions is designed to integrate with your current software systems and work with your users and their desired workflow. To ensure that All My Papers delivers seamless integration a systems requirements workshop will be held with all the appropriate stakeholders involved. This will include project managers, IT staff, business work groups, security, and system architects. Items covered will be planning, system design, functional requirements, schedule and milestones, report designs

All My Papers will schedule on-site and virtual services to facilitate these workshops.

Additional workshops can be scheduled to include custom features and user screens.

Installation and integration services include workflow and process diagrams, testing systems and schedules, report designs, report, assign and define defect categories, define acceptance criteria and timeline

All My Papers provides standard support and optional extended support hours and hotlines. AMP will train first line internal support personnel. 

Requirements

Operating Platform: Windows Server 2012, SQL Server 2014, IIS, .NET 4.6
Windows is a registered trademark of Microsoft Corporation in the United States and other countries.

Downloads

About Downloaded Software

All my Papers software is available for download for trial and production use and in some cases, demo use.

  • Demo Use - You may download the software and install it - limited functionality is available without any licenses.  Products without demo functionality will require a license to use.
  • Trial Use - Qualified customers may obtain a temporary license to enable product features for trial use (usually 30-days) by contacting 
  • Production Use - When you purchase an All My Papers software license, you will be issued a license enabling it use on one workstation or server.  Licenses come with three years of support and maintenance.

  • After Sales Consultation - Some of our enterprise applications (like X9 Exception Manager) are only made available for download after a consutation with our sales group.

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To obtain a trial of X9 Exception Manager, please contact Bill Lange -

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Whitepaper

 

Download a PDF Edition of this Whitepaper

X9 EXCEPTIONS MANAGER

Working with the New Federal Reserve Bank Reg CC

 Time is Money

Executive Summary

The Federal Reserve Bank recently changed Reg CC rules, which will be effective, July 2018.  One of the changes reduces the amount of time allowed for Returns. Efficient exception processing can ensure regulatory compliance.

Return and Exception check items represent a significant number of items and dollar value. 99.9% of check items are now electronically processed either by electronic image exchange or converted to ACH payments according to ECCHO and a Federal Reserve Bank Report. The de facto standard mechanism for routing check items internally and externally is the check image cash letter (ICL) file.

Although check item processing software solutions support forward presentment ICL files, they do not embrace the ICL file as a mechanism for processing returns and exceptions. Consequently, the architecture of most item processing systems is still based on the traditional Day 1 and Day 2 item processing model. In fact, many organizations still process paper items such as IRD’s and printed PDF files for these types of items.

During the business day, sorted batches of transit and deposit items are sent to the item processing software.

Many benefits can be realized by moving exception processing and decisioning from Day 2 to Day 1. More items can be processed in a shorter amount of time by using automatic rule-based routing and decisioning technology. X9 EXCEPTIONS MANAGER will automatically process most returns and route other exceptions to the correct business group for decisioning on Day 1. The application works with all inclearing and deposited items.

The challenge that faces many financial organizations is how to justify the investment required to upgrade the legacy item processing system during a time of decreasing volume of check items.

Many exceptions can be routed to the proper work queue for decisioning response automatically. Specialty exception items can be routed to the appropriate business groups such as the credit card, mortgage, loan, accounts payable, fraud and other departments within the bank.  Routing rules and configurations can be easily created and modified as needed.

Every financial institution requires a customizable, dynamic and efficient way to research items. X9 EXCEPTIONS MANAGER uses a web-based browser model for research screens.

X9 EXCEPTIONS MANAGER is designed and architected to complement any financial institution’s item processing system. Using industry standard file formats like X9.100-187, a SQL database and standard browser user interface screens for research and administration ensures the financial institution’s long-term capability of support.

All My Papers has a suite of item processing software applications built on the X9 Image Clearing Platform. Time is money. Financial organizations can increase transaction throughput by enabling same day exception decisioning and returns with All My Papers X9 EXCEPTIONS manager software.


Exception Processing Today - Processing Paper Returns and Exceptions

The Federal Reserve Bank recently changed Reg CC rules which will be effective, July 2018.  One of the changes reduces the amount of time allowed for Returns. Efficient exception processing can ensure regulatory compliance.

99.9% of check items are now electronically processed either by electronic image exchange or converted to ACH payments according to ECCHO and a Federal Reserve Bank Report. The de facto standard mechanism for routing check items internally and externally is the check image cash letter (ICL) file.

Although check item processing software solutions supports forward presentment ICL files, they do not embrace the ICL file as a mechanism for processing returns and exceptions. This is primarily due to the evolutionary development of dealing with the transition from paper to electronic item processing.

Many organizations still process Returns and Exceptions as paper items (e.g. IRD’s and printed PDF files) for these types of items.

Day 2 Exception Processing Issues

Consequently, the architecture and workflow of most item processing systems is still based on the traditional Day 1 and Day 2 item processing model.

Exception Processing Workflow without X9 Exception Manager

Day 1 item processing accepts all the deposit and inclearing items during the business day, and then posts them into the financial system’s accounting application and general ledger accounts. Images are then archived for short-term use, which migrate over time to long-term storage.

Exceptions such as customer returns, administrative adjustments, foreign items, credit card convenience checks, and fraudulent items are not processed until Day 2.

Day 1 Exception Processing & Decisioning

Many benefits can be realized by moving exception processing and decisioning from Day 2 to Day 1.

Exception Processing Workflow with X9 Exception Manager

More items can be processed in a shorter amount of time by using automatic rule-based routing and decisioning technology. Due to the inverse relationship between volume and price, as check volume is decreasing, the processing cost per item is increasing. This is especially true with exception items.

  1. Regulatory Compliance

Efficient return processing can ensure regulatory compliance. The Federal Reserve Bank recently changed Reg CC rules and the changes will be effective, July 2018.  One of the changes reduces the amount of time allowed for Returns. To those financial organizations still using paper based workflows for returns this new rule will have a significant impact. 

  1. Mitigate Fraud

More efficient returns processing can mitigate fraud exposure risk. The financial organization that is more efficient with Day 1 exception processing will be able to minimize the reserves required for uncollectable funds on exception items and improve float management.

Inclearing check items are presented to financial organizations every day and arrive from a variety of different exchanges. Clearing networks such as the Federal Reserve Bank, SVPCO, Endpoint Exchange and Viewpointe as well as regional exchanges and correspondent banks present both forward presentment and return transit items. The Universal Companion Document has a table of unique field and file validation differences for each organization.

Deposited items may arrive at the financial organization from a variety of channels such as branch teller stations, ATM machines, mobile deposit software applications, commercial remote deposit applications and wholesale and retail remittance service centers.  Some bank’s item processing software converts batches of the items into the bank’s proprietary image cash letter file format for internal routing.

The challenge that faces many financial organizations is how to justify the investment required to upgrade the legacy item processing system during a time of decreasing volume of check items.

Traditional Day 1 and Day 2 Item Processing

During the business day, transit and deposit items are processed by the item processing software. It will take until late in the day to complete item processing, generate posting files, and transfer the images to the image archive. Every check item received by a financial organization is either associated with a deposit account (On-Us) or another institution (transit). Each of those categories must be recognized and dealt with differently.

Not until Day 2 are Items flagged as exceptions by the accounting systems and exception processing module or software. This software routes the exceptions to be returned or reviewed by different business groups.

An effective exception processing system must be adoptable to the many different types of Returns and Exceptions. There are 5 general types of exceptions:

  1. Customer (monetary) returns i.e. non-sufficient funds, closed account, etc.
  2. Administrative adjustment returns i.e. missing image, illegible MICR codes
  3. Duplicate/Item – paying the same item more than once
  4. Specialty items as defined by the financial organization – credit card convenience checks, pre-approved loans, positive pay, HELOC and other types of drafts 
  5. Flagged items based on dollar amount or potential fraud status, mismatched MICR between ICL file field and check image, duplicate items, foreign items, etc.

 

Solution Moving Exception Processing to Day 1

The balance of this white paper will explain the All My Papers’ ICL file based solution architecture and application, X9 EXCEPTIONS which allows exception processing to be moved to Day 1. This application can be added to legacy item processing software without going through expensive upgrades and working with proprietary formats and can be implemented in a short amount of time.

  

X9 EXCEPTIONS MANAGER Enables Day 1 Decisioning and Returns

X9 EXCEPTIONS MANAGER will automatically process most returns and automatically route other exceptions to the correct business cue for decisioning on Day 1. The application also works with all inclearing and deposited items. No need to change your current workflow for non-exception items.

Comparing Exception Processing Workflow with and without X9 Exceptions Manager

X9 EXCETPIONS MANAGER will work in parallel with your current legacy system components such as the item processing, image archive and accounting system.

Auto-Routing

Many exceptions can be routed to the proper work queue or decisioning response automatically. Returns can be placed in Return ICL files the same day for re-presentment with separate files for designated On-Us or transit items. A configurable short time image archive for return items can be created for efficient item research and then eventually migrated to long term image storage. Image Replacement Documents (IRDs) can be printed with advice letters for those items requiring that type of resolution.

Specialty exception items can be routed to the appropriate business groups such as the credit card, mortgage, loan, accounts payable, fraud and other departments within the bank.  Routing rules and configurations can be easily created and modified as needed.

X9 Exception Manager Auto Routing

Configurable Research Screens

Every financial institution requires a configurable and efficient way to research items. X9 Exception Manager uses a web-based browser model for research screens. Browser based screens can make a dynamically sized work group more efficient. On some days, the work load will be heavy with many users needed to access and process the exceptions and on other days a smaller work group can get the process accomplished without using thick client computer workstations.  All the necessary information is presented for efficient decisioning. View the check images, transaction data, MICR code, clearing history, additional records, and disposition tasks can be configured for your institution to make exception processing quick, easy and efficient.

 X9 Exceptions Manager Research Screen

X9 EXCEPTIONS MANAGER Architecture – Image Cash Letter File Based

X9 EXCEPTIONS MANAGER is designed and architected to complement any financial institution’s item processing system. Using industry standard file formats like X9.100-187, an SQL database and standard browser user interface screens for research and administration ensures the financial institution’s long-term capability of support. Technology risks are minimized by using standard database and file formats.

All My Papers has an experienced professional services group who will quickly and accurately scope out the required interfaces required to seamlessly integrate with your existing legacy check processing systems. There is no need to go through the time-consuming process and expense of an item processing system upgrade to gain automation, efficiency and speed in processing exceptions.

All My Papers professional services team will develop system and platform requirement specifications. Everyone will agree on specifically what will be delivered and when. All My Papers has a history of rapid deployment and robust dependable software.

The SQL database is designed to hold only textual information for fast response times and minimal storage requirements. The check images are retained in the ICL files with a pointer back to their location.  Stored SQL procedures mean industry standard maintenance and support, now and in the future instead of proprietary file structure of most closed item processing systems.  Duplicate item and file detections ensure data integrity.

X9 Exceptions Manager System Architecture

Solution Deliverables

All My Papers will deliver a complete solution including

  • System Definition
  • Implementation
  • Software licenses and manuals
  • System Integration Services
  • User and Support training
  • User Acceptance Support
  • Go Live Support
  • Long Term support and maintenance.

Item Processing Solutions from All My Papers

All My Papers has a suite of item processing software applications built on the X9 Image Clearing Platform. Other applications include an enterprise return management system, a returns consolidator, and an Image Cash Letter management system.

X9 Image Clearing

Conclusion & Summary

The Federal Reserve Bank recently changed Reg CC rules and the changes will be effective, July 2018.  One of the changes reduces the amount of time allowed for Returns. Efficient exception processing can ensure regulatory compliance. Time is money. Financial organizations can increase transaction throughput by enabling same day exception decisioning and returns with All My Papers X9 EXCEPTIONS MANAGER software.

X9 EXCEPTIONS MANAGER enables legacy item processing and payment systems to move from Day 2 to Day 1 without going through expensive and time-consuming upgrades or replacements. X9 EXCEPTIONS MANAGER is a scalable solution meeting the needs of large and medium sized financial institutions and departments.

Related Links

X9 Exceptions Manager Press Release

X9 Exceptions Manager Product Page

 

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Ensure FRB Reg CC Compliance

X9 EXCEPTONS MANAGER

Click to Learn More

 

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Products

amc-logosmAll My Checks™
• Extract MICR data accurately
• Format check images for exchange
• Create ICL files for exchange or RDC
• Ready to run software application

ampLIB-logosmX9 Exception Manager

• Increase transaction throughput
• Enable Check 21 processing for legacy systems
• Acheive improved float management

x9LIB-smlogoampLIB MICR OCR SDK 

• Process check images
  From Phones, Cameras, Scanners
• Extract MICR data from check images 
• Format check images for exchange
• Fast programming with single call implementation

ampLIB-logosmX9 RCC
• Build Remotely Created Checks
  - for presentment or exchange
  -on behalf of your customers 
• Produce Test ICL Files
  - to debug Check 21 Applications
  - without risking customer data

viewer-smlogoX9Viewer
• View content of ICL files
• View check images
• Edit records and fields
• Print IRDs and CRDs

qualifier-smlogoX9 Qualifier
• Detect non-conforming TIFF tags
• Correct TIFF Tags
• Detect MICR Mis-Match
• Image IQA

x9LIB-smlogoX9LIB SDK
• Create ICL Files
• Format ICL Files
• Save as CSV Files
• Sort & Merge ICL Files

IRD-Print-smlogoIRD Print
• Conforms to latest standard
• Prints Negotiable IRDs and CRDs
• Works with many printers
• Prints one item or the entire ICL file

x9ImageClearing-smlogoX9 Image Clearing
• Check Archive
• Duplicate Detection 
• Research Check Items
• Forward & Return Clearing

x9ImageClearing-smlogoX9 Returns
• Imports ICL files into SQL database
• Supports 50+ ICL formats
• Return item research & sorting
• Browser-based user interface

News

2014

July 22, 2014 - ALL MY PAPERS Software Selected by Tangerine Bank -- Cheque imaging technology provides low cost solution for Canadian Banks

2013

April 10, 2013 - ALL MY PAPERS Signs Reseller Agreement with Orbograph

2012

September 25, 2012 - Orbograph and All My Papers Form Alliance for Remote Deposit Capture & Mobile Marketplace Complementing technologies improve efficiency and reduce risk of fraud

August 3, 2012- Credit Union Times - Mobility Matters: Tracking the Mobile Banking Revolution in Credit Unions

2011

September 28, 2011- All My Papers Announces a Software Application That Makes Every Scanner a Check Scanner - You can read the press release online by going HERE.

April, 2011- Check Deposit Challenges Using Scanners Without MICR Readers - Transaction News - You can read the article online by going HERE.

January 25, 2011 - All My Papers Updates MICR OCR SDK with Additional Camera Capture Features For Mobile Phones and Desktop Scanners

2009

February 24, 2009 All My Papers Publishes Case Study of X9 IMAGE CLEARING Software Solution For the State of North Carolina Check 21 Processing.

2008

December 2 , 2008 All My Papers Awarded Bid by State of Nouth Carolina for Check 21 Processing

October 24, 2008 All My Papers previews Beta version of X9 Viewer with support for the Universal Companion Document, UCD.

July 23, 2008 All My Papers Releases Software Reader for USPS 4-State Barcode

May 6 , 2008 All My Papers Releases Federal Reserve Bank MICR Conversion Utility for Check 21 Files

2007

December 12, 2007 All My Papers Releases X9 TIFF QUALIFIER For Testing To the New ECCHO Check Image Exchange Rules

October 23, 2007 All My Papers Releases White Paper on Ramifications of MICR Mis-Match in Check Image Exchange

October 22, 2007 All My Papers Releases X9 TIFF QUALIFIER for Image Cash Letters

August 21, 2007 All My Papers Joins Financial Industry Organizations ECCHO and FSTC To Facilitate Check Image Exchange

May 2, 2007 - All My Papers Releases X9 VIEWER for Image Cash Letters

March 27, 2007 - All My Papers Releases White Paper on Check Image Exchange Interoperability and Data Integrity Issue Resolution

February 21 , 2007 - All My Papers and Unisys Deliver Unrivalled Check Image Data Precision for Financial Institutions

2006

January 17 , 2006 - Sterling National Bank, Leveraging All My Papers Technology, Granted Federal Reserve Board Approval for FedReturn™ Image Cash Letter

2005

October 4 , 2005 - All My Papers MICR OCR Technology Integrated into 1,050 7-Eleven Vcom© Kiosks Verifies Check Image Data

August 12 , 2005 - All My Papers Publishes a FREE white paper - Combining Remote Capture and IRD Printing, A Check 21 Strategy for Community and Regional Banks.

July 20, 2005 - All My Papers Business Partner, Aquracy LLC, uses IRD print technology in Remote Image Capture Solution.

July 18, 2005 - All My Papers and Intactis Software Inc. form Strategic Business Partnership.

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