Has anyone had someone present Web based checks at their bank? We have a customer that has begun making payments to their clients this way using VerifyValid. In case you are unfamiliar with this, it is a check that is created online and sent electronically to the payee who is then able to print off the check onto regular paper and present it to their bank for payment or use RDC. The bank is supposed to be able to go to VerifyValid's website and verify the validity of the check. My question is how are checks that come through the Fed Wire verified prior to being applied to our customers account? Or, is it the responsibility of the bank it was presented to to have procedures inplace to verify the check? It seems like there is a risk with multiple checks being printed off and presented to multiple banks for payment. Who is responsible for this if this were to happen? I am trying to mitigate any BSA Risks associated with this type of product and come up with procedures to safe guard us. Any advice you have would be greatly appreciated.

This really is not a BSA issue. It's a check fraud question, and probably better posted in the Deposits and Payments forum.