We have a customer, whose check design is some picture in the background. However, when these checks are imaged, the image comes through with the design picture so dark, we can not read the payable to, legal line, or signature line. When viewing the original check in person these are all legible, it is just when viewing the image conversion that it is illegible.

Is there a regulation that specifically addresses check design parameters? Can we order the customer to spend more money to order more checks because the check is illegible when scanned, even though it is legible when viewing the original?

We added a paragraph to our customer agreements that stated something to the effect that they would not write with color ink or use checks with background designs that are no legible when imaged. if they do so they suffer the loss that the bank and/or any other party would suffer.

I think we did that too, walden...way back when we first went to imaging, people that ordered those checks out of the newspaper ads were notorious for bad quality images...and I remember the ink issue too...probably the language is still in our agreement if I had to guess without looking at it.

That's a great idea, we still have checks come through with yellow gel ink =/

I do not see a provision like this in our agreement.

We had a stipulation that if the customer chooses not to order checks from the financial, they would be responsible and had customer service attempt to strongly encourage them to buy through the financial.. the 'outside' checks used to cause trouble with account number errors often...Some people just have to have 'cuter, smarter, prettier, etc. pictures on their checks....HA

Suggestion: Tell the customer his checks cause problems and won't be permitted after (date X). Offer one free check order to help the customer on his way to clean living. Boot the customer out the door if he won't comply. Make sure you get the "documents used in connection with the account are subject to the bank's approval" language to your deposit agreement going forward.

What a timely post - I just saw the same thing last night in my in-clearings....

Thanks!

Spot on John. Seems we're always so afraid to offend customers when It just makes sense (as well as saves the customer from inconvenience down the road) to have reasonable 'requirements'.

IRS had a field day with the banks in the early '80's with "Red Checks". Those were the days of microfilm, and red colored checks would not microfilm (they would look blank). Customers were also signing with a red felt-tip pen. All that could be retrieved were the black lines on the preprinted check and MICR encoding.

IRS made banks outsort and save the original checks for 7 years.