© 2004 Quality Park/PrintXcel
Why Sell Business Checks?
» $1.5 Billion Market
» No manufacturer or distributor has market dominance
» Over 50% of BTB checks are sold by distributors or forms
professionals
» Formats are traditional continuous, unit set, and cut sheet
» Value add security features, packaging, encoding (and now image
compliance) require expertise and specialized equipment
» Less competition and less price sensitive
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Market Considerations for Check Distributors
» Increased concerns over fraud and the need for security
processes and features
» Bank’s concerns over the costs of processing and
handling checks
» Bank’s concerns over product that does meet ANSI
standards
» Check 21 legislation
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What is Check 21?
» Legislation signed into law by President Bush
» Will become effective October 28, 2004
» Allows banks to create “substitute documents”
or IRDs
» Substitute documents are considered the legal
equivalent of the original paper check
» The Act does not mandate receipt of check images or electronic checks
» However, banks who wish to take advantage of the Act will need at least
some level of image technology
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What are the benefits of Check 21?
» Allows any institution to truncate all paper checks without agreements with any
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other party
Does not force the acceptance of electronic records (images) by creating a
substitute document
The substitute document can be created from the electronic image
The significance of the Act is that it encourages the use of technology to improve
the overall efficiency of the check payment system
Eliminates many costly processing steps for financial institutions
A depositary bank could image capture a check at the earliest point of entry and
never handle the original check again
» Check 21 does not provide guidelines or requirements for the printing or
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creation of the original check
However, documents must be “image friendly” in order for banks to comply
with Check 21
Requirements for image compliant documents are outlined in ANSI X9.7,
X9.90
Requires that areas of interest (CAR, micr line, signature line, etc.) have
defined print contrast levels that allow scanning of the handwritten or
printed data
Requires that background print not interfere with handwritten or printed data
in areas of interest
Areas of Interest
» Date
» CAR — Courtesy Amount Recognition
» Payee and Legal
» Signature areas
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ANSI guidelines for image compliance
» Background reflectance for Date, Payee, Legal and
Signature areas is 40% or greater and the paxel count is
less than 12
» Background reflectance of the CAR area is 60% or
greater, Print Contrast is .3 or less and paxel count less
than 12
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Sample of Original Document as it
appeared when presented for
payment at Bank of First Deposit
Substitute document created
through electronic image capture.
This document is the legal
equivalent of the original check.
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Distributor Concerns
» Background inks, especially void pantos in these areas may not
be compliant
» Redesign of stock and custom products may be required
» Distributor’s understanding of Check 21 and Image Compliance to
provide education for their check customers
» Access to manufacturing expertise and compliance guarantees
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As a distributor,
how can I ensure that
my customer’s checks
are image compliant?
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» There is no way to determine compliance
through a visual inspection.
» The document must be tested through
an image qualifier
» PrintXcel has invested in RDM
image qualifiers for all forms
production facilities
» RDM qualifiers are the only equipment that
meets the requirements of ANSI X9.7
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RDM
Image Qualifier
PrintXcel Services to
Ensure Your Checks
are 21 Ready
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» Testing of all new and repeat check products at the time
of quoting
» Pre-production testing of all new and repeat check
products
» Certification documentation on all image compliant forms
» Design recommendations for products that are not
compliant
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Additional Information
» Additional information about Check 21 is available at this
site
» ECCHO (Electronic Check Clearing House Organization)
has posted additional information at their web site
» For document testing, contact your sales service
representative
» For detailed questions, contact Deanna Day at
800-767-3743, ext. 306
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