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FINANCIAL INFORMATION SYSTEMS

FINANCIAL INFORMATION SYSTEMS. IMAGING & CHECK 21. HOW A CHECK MOVED BEFORE CHECK 21. 11 OTHER FEDERAL RESERVE BANKS. BACKGROUND. EFFICIENTLY STORE AND VIEW SIGNATURE CARDS & ID INFO IMAGE DEPOSITS AND CHECKS REDUCE FRAUD AND RESEARCH TIME CHECK 21 WENT INTO EFFECT 10- 28-04

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FINANCIAL INFORMATION SYSTEMS

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  1. FINANCIAL INFORMATION SYSTEMS IMAGING & CHECK 21

  2. HOW A CHECK MOVED BEFORE CHECK 21 11 OTHER FEDERAL RESERVE BANKS

  3. BACKGROUND • EFFICIENTLY STORE AND VIEW SIGNATURE CARDS & ID INFO • IMAGE DEPOSITS AND CHECKS • REDUCE FRAUDAND RESEARCH TIME • CHECK 21 WENT INTO EFFECT 10-28-04 • ALL BANKS MUST ACCEPT SUBSTITUTE AND TRUNCATED CHECKS AS LEGAL DOCUMENTS

  4. IMAGING AND CHECK 21 • A CHECK IS TRUNCATED INTO AN IMAGE FILE AND SENT TO THE FEDERAL RESERVE VIA THE INTRANET • TRUNCATION: A DIGITAL IMAGE OF THE FRONT AND BACK OF ACHECK • A SUBSITUTE CHECK IS CREATED IF A PHYSICAL CHECK IS NEEDED

  5. SUBSTITUTE CHECK

  6. WHO DOES THIS AFFECT? • BANKS – LESS EXPENSIVE, RECEIVE FUNDS FASTER • BANK EMPLOYEES • IMPROVES CUSTOMER SERVICE AND MINIMIZES FRAUD • CUSTOMERS • ATMS – NO MORE LOST CHECKS • SUBSTITUTE CHECKS AND IMAGES ARRIVE IN PAPER STATEMENTS • NSF FEES – ITEMS MOVE FASTER, SO MONEY NEEDS TO BE IN THE ACCOUNT BEFORE YOU WRITE THE CHECK • SMALL BUSINESSES - MAKE DEPOSITS AT THE OFFICE • SAVES GAS & TIME • ALWAYS HAVE A HARD COPY OF YOUR DEPOSITS

  7. TECHNOLOGY • EXPENSIVE INVESTMENT • MANY BANKS ARE UNABLE TO SEND OR RECEIVE IMAGE FILES • COMPANIES OFFER IMAGING SERVICES • FIDELITY NATIONAL INFORMATION SYSTEMS • ImageCentre, Renaissance Imaging, Outsource, Remote Deposit and Shared Process • DIEBOLD - ImageWay® BRANCH, REMOTE AND IDM

  8. TECHNOLOGY • CENTRAL PROCESSING CENTER WITH A IMAGE PROCESSING CAPABILITIES • OUTSOURCE THEIR SCANNING TO ANOTHER COMPANY • SCANNERS LINKED TO A PC AT EACH BRANCH, WHICH SENDS THE FILES TO A COMPANY FOR ENCODING AND SORTING • BUSINESSES SCAN DEPOSITS AND SEND THEM TO THEIR BANK • COMPATABLE WITH MICROSOFT WINDOWS & STANDARD PCs

  9. SCANNERS • NCR7780 • CANNON CR180

  10. ERRORS?!! • DEPOSIT AMOUNT “CORRECTED” • ITEM NOT ENCLOSED • ERROR IN ADDITION • DEPOSIT NEVER CREDITED TO YOUR ACCOUNT • CHECK YOU WROTE GAINED AN EXTRA ZERO ON THE WAY TO YOUR ACCOUNT • SAME CHECK CAME OUT OF YOUR ACCOUNT TWICE • CHECK YOU NEVER WROTE DEBITS YOUR ACCOUNT • WHY?

  11. HUMAN ELEMENT TECHNOLOGY IS ONLY AS GOOD AS THE INFORMATION HUMANS PUT INTO IT • PEOPLE STILL HAVE TO READ THE CHECK • PRETTY PASTEL INKS • DARK PICTURES ON THE CHECK • MISMATCHING AMOUNTS ON THE CHECK • POOR HANDWRITTING • THE SCANNER MAY MISREAD THE CHECK • OLD, WET, EXCESSIVLY FOLDED, TORN, MUDDY, MOLDY CHECKS • CHEAP CHECKS OR CHECKS MADE AT HOME WITH POOR MICR QUALITY

  12. MOST ERRORS THE CUSTOMERS NEVER SEE • CORRECTION ACCOUNTS • ERROR NOTICES ARE SENT THERE FIRST • A MISSING OR ILLEGIBLE CHECK IN YOUR DEPOSIT • YOUR ACCOUNT WILL BE CREDITED THE FULL AMOUNT • A PERSON WILL PHYSICALLY LOOK AT YOUR DEPOSIT AND RESCAN THE MISSING CHECK OR CREATE AND SCAN A DEBIT FROM YOUR ACCOUNT

  13. YOUR RESPONSIBILTY • CONTACT YOUR BANK ABOUT THE ERROR AND SUBMIT A RESEARCH REQUEST • THESE ARE NOT HIGH PRIORITIES FOR THE BANK SO EXPECT A 2 WEEK DELAY OR MORE • CONTACT THE OTHER BANK OR PREFERABLY THEIR CUSTOMER AND HAVE THEM REPORT THE ERROR • ALWAYS CHECK YOUR STATEMENTS • 60 DAYS TO REPORT AN ERROR

  14. CONCLUSION • COST EFFECTIVE • EFFICIENT • LESS ERRORS & FRAUD • ALLOWS FOR BETTER CUSTOMER SERVICE • MORE CUSTOMER RESPONSIBILTY • NEW REG CC DEPOSIT HOLDS NEEDED

  15. SOURCES • http://en.wikipedia.org/wiki/Banking • http://en.wikipedia.org/wiki/Check_21 • http://www.westsuburbanbank.com/aboutWSB-check21FAQ.asp • http://www.federalreserve.gov/paymentsystems/truncation/default.htm • http://www.diebold.com/ImageWay/atm.htm • http://www.fidelityinfoservices.com/FNFIS/Markets/AllIndustries/CheckImaging/ • http://www.remitplus.com/scanners/high_range_scanners.php • http://www.rpsolutions.com/rpweb/index.php?option=com_content&task=view&id=72&Itemid=233 • http://www.eccho.org/images/point_of_sale.jpg • http://www.taxguru.net/check21nobankfloat.gif

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