May 20, 2004
Big Announcements on Check 21
With just over five months before the effective date of the Check 21 Act, there is major news from the Federal
Reserve Banks. Some of it will affect your institution even if you are not planning to transmit and/or receive imaged items, because it impacts the use of carrier documents on various types of items.
The Federal Reserve Banks have announced:
- a policy change regarding the use of check carrier documents which also affects photocopies in lieu, notices in lieu of return and foreign or mutilated items;
- the launch of a trio of check processing solutions to help financial institutions take advantage of opportunities made possible by the Check 21 Act;
- price ranges for Check 21-related pricing, with three price tiers for electronic endpoints and three price tiers for substitute check endpoints;
- the adoption by the Federal Reserve of DSTU X9.37-2003, Image Cash Letter Customer Documentation;
- which image format they will adopt for imaged checks; and
- what image quality checks they will employ.
The pricing will undoubtedly have an effect on many institutions' decisions about whether to truncate foreign items, whether to choose to truncate only those over a certain dollar amount or those drawn on particular check processing regions, and even the decision of to what extent they will utilize FRB check processing.
We've boiled it all down to the highlights for you. This quick read will get you up to speed.
Federal Reserve Banks Make
Check 21-related Announcements
Check 21 Forum Heats Up
As the effective date for Check 21 draws near, networking with other bankers becomes increasingly important. Comparing notes on how you will educate consumer and commercial customers about the changes they'll be seeing, deciding what new fees, if any, to implement, understanding the impact the new law is likely to have on your operations -- these discussions and many more are going on right now in the Check 21 forum on Bankers' Threads.
 And, of course, we have Check 21 e-cards, including this feisty customer who wants his checks back. You'll find them in the Office Humor section of the e-card exchange.
Now available on CD ROM . . .
 
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