Bar Codes for Teller Checkout
Several new fraud-fighting tools have hit the news recently that use embedded code and readers to battle counterfeiting, theft or misuse of checks.
At Community National Bank, Chanute, KS, a software system is being tested that both guards against fraud and provides the bank quicker turnaround time for getting new checks to commercial customers. To ensure the system will work right, the bank is first using the system to print its own internal checks.
The system consists of three components: a software application that enables the bank and its customers to issue their own checks and make electronic payments from a desktop; a business development software application that issues official checks and other documents on-demand within the bank from bank paper stock; and a validation component that allows checks and documents to be authenticated at the teller line.
The system prints an encrypted bar code on the checks and documents. The code can be read at the teller line by an optical bar code reader, which can also read the MICR information. The bank can print a commercial customer's checks in three days using the secured system - a lot less than the usual two to three weeks. The new system will be rolled out to the bank's customers by the fourth quarter of this year.
For information on the system, visit www.asdc.com.
Meanwhile, Payformance Corporation, a business-to-business payment automation provider, announced a new software service designed to minimize corporate check fraud at the point of first presentment.
This system also depends on bar coding and authentication. It allows pre-determined information about a check (account number, amount, payor/payees) to be embedded in a bar code that also embeds a Payformance code. The resulting bar code is then printed directly onto a check. The code is then read by a bank's reader-sorter equipment and the information on the check and in the bar code can be compared to detect alterations or attempted changes.
The software works with all accounting packages and systems.
For information, visit www.paybond.com.
Copyright © 2001 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 11, No. 9, 9/01
First published on 09/01/2001