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Copyright
© 2009
Relyco Sales Inc.
Relyco®
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are trademarks of
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All other
trademarks are the property of their respective owners. |
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Glossary of Terms
Check 21 and Remote Deposit Capture
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Back
Office Conversion |
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See “Merchant Capture”. Images
captured in back office of merchant, converted
to wire transfer. This term is a new “buzz
word” in the industry, as
NACHA (National Automated Clearing
House Association – the organization that
oversees rules regarding ACH transactions,
procedures, etc.) rules changed effective in
March of 2007. |
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Check 21 |
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This is a law that took effect in
October of 2004 which allows electronically
scanned images of checks or image replacement
documents (IRDs)
to be presented for collection rather than
physical checks. For more detailed information
on Check 21,
click here. |
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IRDs |
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An acronym which stands for Image
Replacement Documents. These are printed check
images that are recognized as legal financial
instruments as a result of the Check 21 Act.
Simply put, once checks are imaged (scanned) for
electronic transmission, the original paper
check is subsequently destroyed. If, during the
check clearing process, it becomes necessary to
produce a paper image of the check (at a bank
that does not have the capability of
transmitting electronic images that they
receive, for instance) an
IRD is created. The IRD includes
printed images of both the front and back of the
check, and because it is considered the
equivalent of a live check, it is usually
printed on safety paper using MICR
ink or toner. |
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Merchant
Capture |
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This is an interchangeable term
for Remote Deposit Capture at the merchant level
and/or Back Office Conversion. Remote Deposit
Capture implies that the check images will be
captured and presented in X9.37 “Fed-sanctioned”
format to their bank and/or processor (Check
21). Back Office Conversion means that images
will be captured, but rather than using
electronic presentment of images, the data will
be converted to a wire (ACH) transaction for
collection. |
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MICR |
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A check
printing acronym which stands for Magnetic Ink
Character Recognition. This refers specifically
to the line of numbers and symbols at the bottom
of a check – the “MICR Line.” These characters,
and often other parts of the check, are printed
with a specially formulated ink or
toner that has magnetic qualities.
The magnetic waves emitted are “read” by sorters
and scanners during the check clearing process.
MICR readability is a
differentiating element from standard document
scanners that use Optical Character Recognition
(OCR) or Intelligent Character Reading (ICR) to
interpret letters, numbers and/or symbols. It
is an additional safeguard against fraud, but
MICR ink and
MICR Laser Printers are readily
available in today’s marketplace. The US
banking system uses E-13B fonts for printing
MICR lines, while Canada uses CMC-7 fonts. Most
check
scanning devices can read both
fonts. |
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NACHA
Rules |
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NACHA is a governing committee that
creates and enforces the rules for Automated
Clearing House (ACH) or wire transfer financial
transactions. New to their rules is the
creation of Back Office Conversion. |
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POP |
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An acronym which stands for Point
of Presentment, a term frequently used in retail
environments. POP refers specifically to the
situation where the customer hands a cashier a
check, which is scanned on the spot to create an
ACH transaction and handed back to the
customer. Though the method has been employed
by some of the largest retail chain stores, it
has not been popular with the general public, as
people are not accustomed to having their checks
returned to them at the point of sale, and also
because it eliminates the “float time” which
many consumers count on to allow them time to
deposit funds into their accounts before a check
is cleared. |
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Remote Deposit |
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A shortened term for Remote
Deposit Capture. See “Merchant Capture.” |
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Retail
Banking |
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This refers to the portion of a
bank’s operations providing services at its
branches for small account holders, usually
individual savings and checking accounts. |
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Safety Paper |
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Specially manufactured paper that
contains built-in
security features designed to deter
fraud. There are many brands and types of
safety paper, but some of the features that may
be present in include fluorescent fibers,
watermarks, special chemical coatings to enhance
toner adhesion, and the ability to produce
indelible stains or even words (“VOID” is
commonly used) when certain chemicals or
solvents are applied to the paper in an attempt
to alter printed information. |
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121 Broadway · Dover NH 03820
T (800) 777-7359 F
(603) 742-9993 E
info@relyco.com |
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