Payee Positive Pay
Roundtable
Solutions Summit 2014
John Snyder
Ati Azemoun, A2iA
What Is The Problem?
• Payee fraud is the largest remaining opportunity for check fraudsters
• Only the check payee name is altered
• As long as there is no change to the MICR line as verified by
traditional Positive Pay, no exception will be flagged
• Payee fraud works with any valid check, stolen and altered or copied
and modified
• Can be as simple as adding an “OR” payee
Chesapeake System Solutions, Inc. • Proprietary and Confidential
What Is T-Recs Payee Positive Pay?
• T-Recs Payee Positive Pay processing closes the payee alteration
fraud loophole
• Also referred to as “Payee Name Verification”
• Banks offer Payee Positive Pay as a valuable additional service to
their Positive Pay customers
• Corporations can also perform Payee Positive Pay on their own
checks if they have access to the images
• Creates a new check exception type – payee mismatch
Chesapeake System Solutions, Inc. • Proprietary and Confidential
How T-Recs Payee Positive Pay Works
• Like traditional Positive Pay, the process requires daily issue files to
be imported
• All check issue records must include a payee name value, consistent
with the printed check payee name
• Payee verification compares the payor’s issue data payee name value
to the check image payee name
• Works with any existing check stock – no special layout is required
• Processes handwritten as well as computer printed checks
Chesapeake System Solutions, Inc. • Proprietary and Confidential
Payee Name Verification Processing Flow
Bank Inclearings
and/or
DDA System
1
Paid Check Data
2
PNV
Check
Data
3
T-Recs
PNV
Module
4
T-Recs
Check Image
Retrieval
Enterprise
9
Payee
Compare
Results
5
Bank Image
Archive
6
8
Payee Name Read
And Compare
7
PNV
Check
Images
10
Pay/Return
Exception
Report/Export
Chesapeake System Solutions, Inc. • Proprietary and Confidential
Implementation
• Check “reading” technology is used to find and interpret (using OCR
and ICR) the payee name on the check image
• All necessary software is provided by Chesapeake as part of T-Recs
• Chesapeake implements an interface to the existing image archive to
retrieve check images on demand, as needed, for matching
• Identified payee mismatches are simply flagged as another T-Recs
exception type
• All subsequent research and processing is the same as any other
exception
Chesapeake System Solutions, Inc. • Proprietary and Confidential
About A2iA - Artificial Intelligence and Image Analysis
• A2iA is the leading recognition technology provider.
A2iA is a developer of specialized and highly intelligent software tools that help
end users optimize their data capture, document processing and workflow
automation capabilities. A2iA’s products feature state-of-the-art and proprietary
recognition technologies – including handwriting recognition, intelligent word and
optical character recognition – that address our customers’ complex data
extraction and document processing needs
• Founded in 1991
• A2iA Corp founded in 1999.
• A2iA technology covers all aspects of image analysis, pre-processing
technologies, classification, data location and data extraction.
Chesapeake System Solutions, Inc. • Proprietary and Confidential
About A2iA CheckReader™
A2iA CheckReader™ is an all inclusive Software tool kit applied by Chesapeake System Solutions, to address
the complex work of Payee Name Recognition, as well as additional points of data collection from a payment
document.
Date
Payer Name &
Address
Check
Number
Payee
Name
Legal
Amount
Courtesy Amount
Memo
Line
MICR
Signature Detection
Chesapeake System Solutions, Inc. • Proprietary and Confidential
How to Optimize Performance for Positive Pay
Chesapeake System Solutions, can review your client’s payment
documents, and printed matter, and where possible a set of guidelines can
be applied to improve recognition results.
•
•
•
•
Use 200 to 300 DPI when scanning the payment documents.
Introduce white space around the Payee Name if possible.
Avoid Background “Noise”, such a logo’s or stamps.
Print quality should be closer to 600 dpi.
A2iA recommends an Implementation Services for your clients prior to initiating a Payee Name
Recognition Strategy. Please see Chesapeake System Solutions for details.
Chesapeake System Solutions, Inc. • Proprietary and Confidential
T-Recs Payee Positive Pay Demo
Chesapeake System Solutions, Inc. • Proprietary and Confidential
Q&A