Question: What does all the information on an IRD mean? Can anyone provide a basic rundown on what makes an IRD a legal check?
Answer: First off, there are six items found on an IRD you won't find on a check that allow them to be processed just like original checks:
The Unique Identifier is a MICR number in the top left-hand corner of an IRD that indicates which bank the imaged check came from.
A legend statement right below the unique identifier assures an imaged check is indeed a legal copy of the original. This disclaimer should always read "This is a LEGAL COPY of your check. You can use it the same way you would use the original check."
Located on the left side of the image is a transaction code unique to each check. The unique identifier appears here again as well. These two lines of MICR coding are also recreated on the backside of the check. Once at the very top and again down below the endorsement line.
IRDs are identified by the first character represented along the MICR line (that appears below the original check) being the number "4". The first character is also known as "position 44" or the EPC (Electronic Processing Code) field.
Position 44 is always followed by the identical MICR line (transit number and account number) from the original check.
The last set of MICR characters corresponds to the check amount.
Additionally, an IRD has with it specifications and regulations for legality under X9 Standards. Within those standards, X9.90 refers specifically to IRDs. Legality factors include legibility (for machine readability), exact positioning requirements for the items described above, and overall dimension requirements.
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