C
heck 21 facilitates check truncation by creating a new
negotiable instrument called a substitute check or Image
Replacement Document (IRD) that permits banks to truncate
original checks, to process check information electronically, and to deliver
substitute checks to banks that want to continue receiving paper checks.
A teller receives a check deposit or payment at
a local bank branch. The check is scanned at
the point of presentment and the bank uses
a check processing software solution with the
CR-55 to send the image of the check to a
central processing bank or directly to the
Federal Reserve Bank for processing.
At larger bank branches, the tellers accept the
checks at the front counters and could scan them at
this point of presentment with the CR-55, or they
may batch scan them at a back counter at specified
times during the day. Using the check processing
software with the CR-180 or CR-55, the images are
then sent either to a central processing bank or
directly to the Federal Reserve Bank for processing.
3. Remote Deposit/
Merchant Capture
P
a
yme
n
t
s
lip
s
for credit cards, utility bills,
e
tc. are usually sent through the mail with a
check to an intermediary facility where they are
received in a “locked box.” Together, the check
and pa
yme
nt slip are scanned and balanced
using the CR-55 and/or CR-180 systems.
Customer-facing businesses—such as retail
stores, utilities, and doctors’ offices—accept
checks for payments. Depending on the volume
and if they process the checks at the point of pre-
sentment or in batches, the business can utilize
either the CR-55 or CR-180 to transmit received
checks electronically to their bank for deposit.
• Capture Image at Point of Presentment
Bank Branch
• CR-55 at Teller
• 3,000 items/day
• Capture Image at Point
of
P
resentment and/or
as Batch Processing
• CR-55
• 3,000 items/day
• CR-180
• 20,000
items/day
• Any Business
Accepting Checks
• CR-180 or CR-55
(depending on volume)
Central Processing Bank
Merchants
Federal Reserve Bank
Paying Bank
• Retail Stores
• Utilities
• Accounting Offices
• Mom and Pop Shops
• Doctors’ Offices
Customer Statement
Teller
Teller
Postal
Letter
Check 21 Workflow Applications
2. Back Counter/
Branch Capture
4. Remittance/
Lockbox Processing
• Batch Processing
•
CR-180 or CR-55
(depending on volume)
Intermediaries
KEY
C
hec
k
Image
s and
Electronic Cash Letters
=
The following illustrations describe four current
check payment trends in the U.S. market: 1) Front
Counter/Teller Capture; 2) Back Counter/Branch
Capture; 3) Remote Deposit/Merchant Capture;
and 4) Remittance/Lockbox Processing.
Bank Branch
1. Front Counter/
Teller Capture
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