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Check Fundamentals & Check Processing

Do you know the check? Get started with a review of key definitions, parts of a check, parties to a check, MICR line and the routing number as discussed in this session. Also included, is a payments system overview including a brief discussion of presentment, settlement, and float.

Check Products

Types of checks and check products including the image cash letter (ICL), remotely created checks (RCCs), ARP products including positive pay, controlled disbursement, and lockbox are covered in this session. A review of Remote Deposit Capture (RDC) and a brief overview of ACH check conversion SEC codes is also included.

Regulations: UCC 3, part 1

A review of the check payment system regulatory foundation begins with the Uniform Commercial Code. This session covers UCC Articles 3 and 4 and provides some scenarios illustrating key provisions.

Regulations: UCC 4, part 2

A review of the check payment system regulatory foundation begins with the Uniform Commercial Code. This session covers UCC Articles 3 and 4 and provides some scenarios illustrating key provisions.

Regulations: Regulation CC, part 1

Reg CC-Part I: Provides the regulatory foundation with a discussion of Reg CC as part of the Code of Federal Regulations (CFR). It reviews the background of why Reg CC was amended and then covers definitions, general provisions, and the X9 standards now referenced within the regulation. Reg CC-Part II:

Regulations:  Regulation CC, part 2

Reg CC-Part II: Provides definitions and warranties related to electronic checks and discusses the RDC indemnity and ECI Indemnity added to the regulation. Discussion includes electronic check and electronic returned check within Reg CC and what that means to the image exchange process. Also discussed is the continued requirement for rules and agreements for image exchange. Brief scenarios are included for trainees to apply their knowledge of key warranties and how breach of warranty situations may occur.

Standards & Formats

Are all those different X9 standards confusing? This session helps NCP candidates gain a better understanding of standards used in the check processing world. From X9.100-140, the substitute check standard, through X9.100-188, the new return reason standard, this session walks you through the basics. The Universal Companion Document, or UCD, to the X9.100-187 standard is also covered in this session.

Image Exchange: Rules & Agreements, part 1: ECCHO

Image Exchange in the Private Sector
Why are rules and agreements needed for image exchange? This session answers the question and reviews the rules for predominant image exchange models: ECCHO Operating Rules and the Federal Reserve Operating Circular 3 (OC 3). Part I focuses on the private sector image exchange channel and looks at private agreements with this session focused on the ECCHO rule set and commentary.

Image Exchange: Rules & Agreements, part 2: FRB OC 3

Image Exchange via the Federal Reserve
This session completes the two-part review of rules for predominant image exchange models. Part II focuses on key provisions of image exchange through the Federal Reserve with a review of Operating Circular 3 (OC 3) and how and where Regulation J is included. A brief comparison of key similarities and differences between the predominant industry rule sets - ECCHO Operating Rules and Federal Reserve's OC 3 - is included at the end of this session.

Image Exchange: Processes

The image cash letter (ICL) is discussed in this session with a focus on how the ICL is built based on image exchange standards. Scenarios are used to show various processing examples of how an image cash letter file is built; how the records are populated to move the image file through a forward or return process; and in which operational situations you need one record type versus another. Detailed examples and handouts are provided. An overview of a "day in the life of a check" in an image environment is included, and also covers common Day 1 and Day 2 processes. Paper exchange processes are minimally covered.

Exceptions - Returns and Adjustments: Overview & FRB Adjustments

What happens when an item cannot be immediately processed and needs special handling? This session focuses on those exception situations and how to decide item disposition. Should the exception be handled as a return or as an adjustment, and how does timing factor into this decision? If the item is sent as a return, what return codes should be included so that the item can be properly identified by the depositary bank upon receipt? Common error and adjustment types as handled through the Fed are covered in this session.

Exceptions: Returns & Adjustments: ECCHO Adjustments & U.S. Treasury Check Reclamation  

What happens when an item cannot be immediately processed and needs special handling? This session focuses on those exception situations and how to decide item disposition. Should the exception be handled as a return or as an adjustment, and how does timing factor into this decision? If the item is sent as a return, what return codes should be included so that the item can be properly identified by the depositary bank upon receipt? Common error and adjustment types as handled through the private sector are covered in this session. Additionally, this session provides information on the reclamation process for U.S. Treasury checks.

This session provides an overview of payments fraud with a discussion on types of fraud and ideas for identifying and potentially preventing fraud. The session includes a discussion of the Federal Financial Institutions Examination Council's (FFIEC) guidance for financial institution examiners including specific guidance on risk management. This session wraps up with the latest FFIEC guidance for RDC risk management.

This session provides an overview of payments fraud with a discussion on types of fraud and ideas for identifying and potentially preventing fraud.