For those banks that will create substitute checks, how are you going to ensure that only the substitute check is presented for payment? It seems that after 10/28, the most significant issue that will arise from a compliance perspective is the double-posting (where bank sends a substitute check and then an original check). How are you going to ensure that you only send the substitute check?

And, as the paying bank, how are you going to ensure that you only pay the check once? I'm just wondering about what banks are doing to prevent significant customer concerns before October 28, 2004.

I don't know to prevent it (I know, I know that was your question) but it really should be no different than right now when you do an adjustment for photo/original paid or for ARC transactions when the check happens to go through. It happens now, it will happen then.

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And, as the paying bank, how are you going to ensure that you only pay the check once?

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I am told that Jack Henry recently made a fraud package available that recognizes a MICR line it has seen before. (I am not talking about positive pay.) The system is capable of remembering that it paid check #1506 for $878 and rejects a duplicate for a physical inspection.

Whether the anecdote is true or not, this is what bankers are going to be asking for at their next users' group meeting.