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#2138970 - 07/20/17 05:59 PM Software & detection of duplicate checks
Elwood P. Dowd Offline
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Elwood P. Dowd
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Does your check processing software have a “duplicate detection” feature; i.e. if check #1449 has been paid (perhaps as a mobile deposit) and a second item bearing the same number (perhaps the original paper check) is presented your system can reject or flag the item.
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Votes accepted starting: 07/20/17 05:57 PM
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Votes accepted starting: 07/20/17 05:59 PM
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Deposits and Payments
#2139080 - 07/21/17 03:42 PM Re: Software & detection of duplicate checks Elwood P. Dowd
Elwood P. Dowd Offline
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Elwood P. Dowd
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As mobile deposits and remote deposit capture become more pervasive, it is increasingly common that a paper check that should have been truncated or destroyed makes its way into the clearing system. Regulation CC is being revised to establish a rule set where a bank that presented an item electronically agrees to indemnify the bank that later accepted the paper check for deposit.

However, the time frame in which the paying bank discovers the duplicate payment is critical. If it's before the midnight deadline, the item can be returned without a conversation as a "duplicate presentment." If it's after the midnight deadline then the paying bank will need to either 1) go through an adjustment process based on its specific clearing arrangements or 2) go bank to bank with the bank that presented the item electronically.

The 1) work load and 2) likelihood of loss increase exponentially if the paying bank does not return the item by the midnight deadline. The ability to detect the duplicate ASAP is an important feature.,,
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#2139478 - 07/25/17 07:55 PM Re: Software & detection of duplicate checks Elwood P. Dowd
madukes Offline
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madukes
Joined: Jul 2009
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Flyers Country
Our check processor does not have "duplicate payment" as a return option so for the most part we are submitting PAID cases through the fed. We have at times returned an item as "refer to maker" especially where the item has been presented multiple times. I did read that there would be additional protections for the bank accepting the paper item provided the paper item does not have "for mobile deposit" or similar restrictive endorsement. Our mobile deposit procedures state that the customers are to endorse their checks this way, however the majority do not and we still accept them. It appears this may be more strictly enforced sometime before the change to the reg takes place.

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#2141305 - 08/09/17 12:16 PM Re: Software & detection of duplicate checks madukes
Elwood P. Dowd Offline
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Elwood P. Dowd
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Bump

In polling seminar attendees, I'm getting more "no" answers than I expected...that's a problem.
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#2142483 - 08/17/17 08:15 PM Re: Software & detection of duplicate checks Elwood P. Dowd
madukes Offline
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madukes
Joined: Jul 2009
Posts: 1,448
Flyers Country
Our check processor has the ability to hold a deposited check from being submitted to the fed if it appears on our duplicate detection report. If, after review it is deemed to be a true duplicate, the funds are debited from the customer's account and the branch is informed so that they can notify the customer. If it is not a duplicate, the customer's account is left alone and our processor is advised to reprocess the item and will then submit it to the fed for payment.

If our inclearing check appears as a dup, it is reviewed and if it is a true duplicate then a PAID case is submitted to the fed. We do not have the capability to return as duplicate - that is not on our list of return reason codes at this time (we are pushing to have it added).

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#2142610 - 08/18/17 02:59 PM Re: Software & detection of duplicate checks Elwood P. Dowd
John Burnett Offline
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John Burnett
Joined: Oct 2000
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Cape Cod
You could use code X ("see reason on front of check" if you have a way to add "duplicate presentment" to the check or check image.

When you reject a check that your depositor is attempting to deposit (because it's a dupe item), do you return the check to the customer?
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