Check21

 

eDoc Innovations is excited about the new year because we are poised to benefit so many credit unions and other financial institutions that will start using Check 21 systems in the next 12 months. DocManager and DocForms™ software modules were specifically designed to work with your system for just this type of activity. The bottom line is that you may be further along your path to Check 21 compliance than you thought just because you have eDoc products. For those who do not currently use DocManager or DocForms™, we are pleased to announce a great solution to you that is robust, feature rich and affordable.

We invite you to call us no matter what stage you are at in implementing Check 21. We will gladly show you how eDoc Innovations products will get you started or improve your Check 21 efforts.

A little background: “Check 21” is short for The Check Clearing for the 21st Century Act; a piece of federal legislation that became effective on October 28, 2004. The purpose of the law is to make digital images of checks legally acceptable debit instruments to reduce the transaction time between intra-bank money exchanges. While the law neither requires financial institutions to accept digital images of checks nor requires banks to create these “substitute checks”, many banks and credit unions that have utilized it have already received huge benefits. The Check 21 Act includes new warranties, an indemnity, and expedited recredit procedures that protect substitute check recipients.

Why is Check 21 so important for your organization?

  • Operational savings in lost time and opportunities
  • Strategic value for your clients in the form of reduced fraud loss and increased institutional strength through the ease of being able to interact other institutions
  • Speed increases mean that you, your staff and, most importantly, your clients are able to get on with the things that matter most like funding the deal, completing monthly accounting tasks, and fulfilling personal objectives (respectively) without “float time” delays

Check 21 System – Check Capture and Transmission Capabilities

Draft Control Processing Systems (“DCPS”) is a low-cost, high-quality solution for Day 1 and Day 2 transaction processing. Check image readers capture draft and internal document information. MICR line information is converted into ACH form for clearing, and internal document information is captured to facilitate balancing. Alternative to ACH, high quality MICR encoded images may be printed. Images may also be edited as would be required for a clearinghouse environment. DCPS uses an image character recognition (“ICR”) program to perform a second scan of the MICR line, as well as non-MICR information on drafts and internal documents. Not only does the ICR software enable DCPS to incorporate critical account or transaction information not printed on the MICR line, but it performs the scan of both sides of the document simultaneously so it passes through the scanner only once.

Product Features

  • CAR/LAR capability, which allows automation of the check amount input. This reads the hand writing and translates that to data. The corporate solution requires the user to input the check amount for each item.
  • Centralized database for storage. This allows the credit union to store and own the image data. Having the storage and retrieval allows you to eliminate costs from corporate for check retrieval both by staff and members through the internet.
  • The accounting capability to balance the checks with the credit documents and ensure the batch total and the amount taken in through the core processing system balance.
  • The ability to create and post the transactions to the core accounting software and eliminate the exposure of sending an item to corp., only to have it returned because funds aren’t available when the item comes back to clear.
  • Integration with eDoc Innovations’s image data base for research, reports and interactive eStatement and DocAgent.
  • Bi-directional image processing. With a corporate solution, you can only push the image to them. You can’t accept images directly nor can you re-print the image for presentment. Additional eDoc’s modules allow you to do these functions as well.