Proof & Transit Alert
We've talked about putting a strip (e.g., a Lundy strip) on the bottom of the check when the computer will not "read" because of some error on the MICR line.
Our high speed readers are pretty remarkable pieces of equipment. One computer expert told me the checks go by "about 400 mph." The only reason they don't go faster, he said, is because they'd catch on fire! (I have my reasonable doubts about that!)
But the remarkable thing about the speed is that when the MICR line is incorrect, the reader/sorter computer not only "kicks" out and rejects, it also tells you why. So that if the line is printed too lightly to read, or one of the numbers is out of line, or one of the fields is off or incorrect, it will tell you so.
The real indicator of fraud, however, is when it tells you the entire line is either not printed in magnetic ink, or is incorrect in sequence or placement. That should alert the proof and transit person the item is a true, out-and-out fraudulent item - not an item to be stripped and put back into the work! Make sure your proof and transit people know who to call quickly if such an item hits their desk to strip.
Copyright © 1998 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 8, No. 7, 7/98
First published on 07/01/1998