When a request for an external transfer is received by a customer, we currently require a form to be completed by the customer (they sign and date it) and also provide a document from the account at the other institution, usually a voided check or deposit slip. However, more and more banks are not providing checks and customers are sending us other forms of additional documents, and customers get frustrated when they fill out a form and provide a document only to be told it’s not quite the right document for our bank.

We want to ensure we know what constitutes acceptable documentation vs when we need to push back and require more of the customer. Are there any written regulations on this that we can fall back on, or at the very least some boundaries to what is within our discretion to allow/reject?

Currently, the primary debate we’re having is over whether the customer’s name must be on the document from the other institution, as it would be present on a voided check, or whether we just need to confirm the actual account and routing number at the other institution.

this is your bank's decision to determine what documentation you require, and how you validate that fraud is not occurring. since you talk about creating an external transfer to another bank, i read this to mean your customer is sending money to an account at another bank, meaning a credit. look at what your account agreement has by way of requirements and protection for your bank. but requiring a voided check has really gone the way of the dodo, as everyone uses ACH and knows what a RT# and AC# is these days

If these are done on-line, usually a test transaction is sent to the other account for a few pennies and then the customer has to verify the deposit amount to the other account before the account is activated to prove that at least your customer has control over both accounts.