Accounts Receivable (ARC) Check Truncation REG E Revisited Used by large receivers of periodic payments Consumer cannot opt out Notification in periodic payment packet Typically credit card, utility companies No check returned No Business Checks
Bank Check Substitution Check 21 Consumer receives Substitute Check
Effects Everyone Consumer Business Government
Who Truncates Bank Bank Representative ATM
Who is Responsible Whoever causes the creation of the paper substitute check.
Justification for Check 21 Montana Project Federal Law requires checks to clear in 3 days. Montana is 4 th largest state. If laid over the East Coast it would stretch from Boston to Detroit and from Boston to Washington DC
Check 21 Makes Paper Substitutes Legal It Does Not Make Images Legal or Required
What Defines a Legal Substitute Check Proposed X9 standard X9.90 Specifies Dimensions/Tolerances Paper Stock Perforation Tear Strength Fonts Image Scaling Aspect Ratio, Registration Point
Font Issues Using commercial vendors as “standards” reference Identifying non-existent standards
All Fonts Are Not Created Equal X9.90 references the Bitstream OCR A font as an example of an acceptable font. Only true for OCR fonts copyrighted after Previous versions were not mono spaced. Search Google for “OCR A Bitstream” and the first site sells Bitstream pre fonts.
Non Existent Font Standard References ANSI OCR-A as relevant standard but identifies a 10 point Bitstream font which has no ANSI size equivalency.
Image Presentation Requirements Original image scaled to “make maximum use of space while maintaining aspect ratio”. “The resulting scaled image shall be anchored at lower right corner of region.” Implication: Back side of image must be anchored lower left corner.
Can Any Printer be Used to Print Substitute Checks Yes but it may not create a legal substitute check. The MICR line must conform to existing check standard. If it does not, it may be rejected by the receiving institution.
Calibration Text Free test to determine if a printer meets minimum requirement to print Substitute Checks.