Topic: Check Clearing for the 21st Century Act (Check 21)
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Are we still required to use magnetic ink when printing the magnetic ink character recognition (MICR) line on our checks?
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Yes, we believe that the MICR line still must be printed in magnetic ink in order for a check to be treated and processed as a check, under both Regulation CC and standards for check printing promulgated by the Accredited Standards Committee (ASC). For purposes of Regulation CC, a check that does not include a…
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We recently started offering remote deposit capture (RDC) for consumer accounts through mobile phones. A customer recently deposited a check using our RDC phone app. Three days later, the check was cashed at a currency exchange (we don’t know if it was our customer who cashed the check or someone else), and the currency exchange’s deposit of the check was returned. The currency exchange is demanding that we reimburse it under the Check 21 Act warranty provisions and as a “holder in due course” under the Uniform Commercial Code. Are we required to reimburse the currency exchange?
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No, we do not believe that your bank is required to reimburse the currency exchange under these circumstances. There have been two attempts to deposit this check. First, your customer deposited the check using your bank’s mobile app, and your bank successfully obtained payment from the paying bank (the bank on which the check was…
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Are we required to provide check images to our customers? If we are required to provide them upon request, can we charge for the check images?
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You are not required to include check images in customers’ account statements, but you must retain check images and provide them to customers on request. You may charge a reasonable fee for such images, provided that your customers have agreed to the fee. Neither Regulation CC nor the Uniform Commercial Code require that you provide…