We are a bank that is about to embark on branch remote capture and plan to print IRD's at our central site for forward collection. We anticipate receiving a percentage of these substitute checks back through returns. We inturn will charge back our depositor. My question is: When my depositor brings a Return Substitute check to the bank for redepositing, can I process it through my remote capture process? Keeping in mind if it goes through my remote capture process I will truncate the original IRD at the branch and create an IRD (substitute check)of the Original IRD for forward collection. My remote capture vendor tells me I can't do that. I can't find in any regulations where a bank would be prohibited from doing this. Does anyone do this today? Maybe offer some resources to get more info?

An IRD of an IRD is called a "Subsequent IRD". The first IRD should have had a "4" in position 44 of the MICR line so that, when it is redeposited, the system will know that it is an IRD and handle it correctly. Get a copy of the ANSI X9.100-140 IRD spec to be sure that your remote capture and IRD printing is being done right.