|
The general consensus is that when Check 21 arrives, all banks will have to move to image statements. However, there are several good reasons to move directly to check truncation, sending only statements instead of image statements.
Major factors to consider are:
Check conversion to ACH - not all check images are available
Steep decline in number of checks
Poor quality of incoming check images
The need for full size front and back check images in case of disputed payments
Images of checks converted to ACH transactions will never be available, and cannot be placed on image statements. The ACH transaction will be on the statement, but if image statements are in use, the absence of ACH converted item images from the image statement pages may create unnecessary concern and generate customer inquiries that will require employee time to handle.
With the rapid rise of cash back debit card usage at supermarkets and large retailers, the volume of checks has declined and is expected to decline even more rapidly in the next few years. In addition, as more and more payments are handled online, the use of checks in this area will continually decline. The percentage of checks compared to other statement items will probably become very small, but the effort and expense in preparing and handling the image statement pages will go on forever.
In the Check 21 world, the images of checks will be created by the initial processor, not the customer's bank, and may be of much poorer quality than those created by the customer's bank. However, banks sending image statements will have no choice but to place these poor quality images on their customer statements. The blame is likely to be placed on the customer's bank, and hard to read images may generate unnecessary customer support calls. The Check 21 system has minimum image quality standards, but checks can pass these standards and still be of much poorer quality than most people find acceptable. Banks sending image statements may wish they could stop.
In cases of disputed payments, a full size image of both check sides is usually needed. Only a very small percentage of check payments are disputed, and printing small front side only images on statements does nothing to address this issue. The MICR Automation System finds items instantly and prints full-size both-side images on a page with the customer name and address where it will show through a window envelope. Employee time responding to requests for check images is minimized. Printouts for electronically presented checks may optionally show the bank of first deposit and the credit account number receiving the funds, further aiding the customer in settling any dispute. This information may also be faxed or emailed from the MICR Automation Image System.
By placing check images on the Internet using the affordable MICR Automation self-hosted secure website server, and pressing non-Internet customers to adopt carbonless second copy checkbooks, banks can make the move to truncation a positive customer experience.
In summary, there are good reasons to go directly to check truncation when Check 21 arrives. Banks who never start sending image statements will never have to stop.
|
|
