Operational Practices

Discover a wealth of information and recommendations on issues identified in the image-based clearing environment. Review the links provided here for assistance in common issues experienced by the members of our organizations and to learn more about the image-based clearing environment.

ANSI X9.100-188 | Return Reasons
The Uniform Commercial Code (UCC) and Regulation CC (Reg CC), do not include a list of specific reasons that an item may be dishonored and returned. However with image exchange, the standard exchange format provides a list of return reasons and associated codes that must be used for image exchange. Use of these return reasons has become the standard industry practice. (Version 2Version 1)

Paper: Additional Issues Regarding Possible Duplicate Payment of Check Items
Duplicates continue to be a challenge for the banking industry. This paper addresses certain issues associated with duplicate presentment of check images.

Check Issues Document: Payee Indorsements
Since the implementation of Check 21 and Remote Deposit Capture (RDC), there have been questions regarding the need and/or requirement for payee indorsements on deposited checks under applicable law and the rules governing image exchange generally. This document provides some general information and discussion on the topic of payee indorsements. Banks are encouraged to consider the information in this document with their legal counsels and other appropriate members of their check collection operations. The document identifies legal, business and operational considerations with respect to decisions concerning the handling of checks without payee indorsements.

Duplicate Prevention and Detection
Review guidelines to assist institutions of all sizes in the prevention of duplicates and failing that, in the detection of duplicate payments.

Resolving Duplicates as Adjustments versus Returns
Understand the decision of handling duplicates received by the paying bank that are discovered within the legal required return time windows.

Ways to Use Check 21
Review the variety of applications your institution can use to create substitute checks, including Remote Deposit Taking, Image Exchange/Truncation, and Lockbox Application.

Operational/Implementation Issues
Learn about issues associated with the creation of substitute checks and/or image exchange. This comprehensive document includes diagrams of potential transaction flows under an image exchange process, outlines the standards that have been developed for the creation of substitute checks, and discusses the processing of these items including issues that may arise as well as many other pertinent topics.

Avoiding Duplicates
Learn the proper procedures for handling duplicate substitute checks whether your institution is responsible for creating duplicates or your institution is receiving duplicates.

Dashes and Spaces in Substitute Checks and Images
Discover the impact to an institution of a change to the MICR line of a substitute check.

Endorsements
View a pictorial representation of an “Image and Document” flow overview showing how endorsements will be transferred and/or applied as items flow from original checks to electronic images and IRDs.

News Archives
A compilation of news archives including articles on duplicates, duplicate prevention, unpostable account numbers, zero dollar items and other helpful information.