March 1, 2007

The transition to “image friendly” cheques in Canada is well under way.

Business Cheques 

The new specifications in Standard 006 require all businesses to modify their cheques, and many have done so since the publication of the Standard in January 2005. Businesses that have not yet updated their cheques are strongly encouraged to do so by June 30, 2007 in preparation for the new image-based clearing process. In particular, any new cheque orders printed after that date should reflect the new specifications.

Notwithstanding the above target date, to help their business customers make a smooth transition, financial institutions will continue to process “old format” business cheques until implementation of the new clearing process begins in the latter part of 2008. This extended transition or “grace period” will allow businesses that are still working on the changes to use up their existing supply of cheques and to make any required changes to software.

 

To view the new Canadian Payments Association (CPA) Standards in their entirety, please click here.