Our proof operator & I were discussing Check 21 and carriers. We need a clarification on whether or not carriers can be used. At present they are used on return items and damaged or wrinkled items. If they are not allowed then how would return items and damaged items be processed through proof? If you "no sort" items then your endorsement and current date are not on the item.

yes, you may continue to use carriers. The risk you run with check 21 if that is someone converts it to an image, you may not get all of the endorsements. FRB is trying to discourage their use, and will be charging a higher fee for use of carriers.

If you use carriers for damaged return items, for example, then they must be sorted into a separate return letter. Any items in carriers must be in a separate "raw" cash letter whether forward or return letters. If you include these in high-speed forward or return cash letters you will have to assume liability for Check 21 losses. This info should be at frbservices.org

I asked the same question about endorsing returns with strips. I have no idea what to do because we want to endorse the items but don't want to make the original and subsequent endorsements illegible either because then we have another can of worms to address. I guess we will call FRB and see what is the correct thing to do.

We have purchased a stripper to use for our return items and will put any items that must be put into a carrier on a separate 'non-machinable' cash letter to Fed. I have been given the impression from our local FRB that carriers in high speed cash letters will cause the whole cash letter to be charged at non-machinable pricing which could be huge! The stripper we are using for returns has been really great and is a labor savings over manual strips or carriers.