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#2241483 - 08/21/20 09:08 PM X9 files
Baker Offline
Platinum Poster
Joined: Nov 2005
Posts: 773
Washington State
Is anybody familiar with X9 files? Clients have the ability to submit their own Inclearing File directly to core processor via a X9.37 file.

They utilize a vendor for submitting their X9 file to JH. Essentially, the vendor provides an app for consumers to use to “mobile deposit” their checks directly to the Company’s acct.

Just wondering what risks are to the bank, what precautions should be put in place, monitoring, contract language. Would there be any reasons not to allow this? Should it be limited to certain clients? What is process for determining who should be allowed to have it?

Really just looking for any input. Thanks!

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#2241765 - 08/28/20 07:11 PM Re: X9 files Baker
Ric30 Offline
100 Club
Joined: Apr 2005
Posts: 186
How does this work? Does it go through any item processing software? You mention JH so I assume that is Jack Henry. How do the items get to your check21 software to send the outclearing items out?

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#2241773 - 08/29/20 03:51 PM Re: X9 files Baker
InFairness, CRCM Offline
Platinum Poster
InFairness, CRCM
Joined: Nov 2010
Posts: 578
X9 is just a file format. The FRB adopted it for Check 21 purposes. JH can accept both formats and convert them to a format that can be used in their ImageCenter, SuperImage, and 4|Sight systems. I don't think it is avaialbe to all JH clients - just those on the SilverLake System®, CIF 20/20®, and Core Director platforms.

I've not audited use of these systems, but my gut is to treat this as outsourced data processing. I'd look for data integrity, consistency, and completeness of the X9 data files sent and received. If customers are uploading their own data files directly, I'd also look for controls to ensure the checks actually exist, although I suspect you'd see an uptick in returns if they didn't.

The link below is to the last FRB standards update on Image Cash Letters that I recall seeing. It gives a little info. on the X9 format.

Image Cash Letter Customer Documentation
Opinions are strictly my own, and have nothing to do with my employer.

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