Aoutomated check systems endorsement query
May 23, 2012 9:25 AM Subscribe
When check deposits are processing internally, instead of being physically deposited at the bank, what are the endorsement requirements? Do they always need to have an endorsement stamp? Is there a requirement for the OCR processing to print coding info on each check?
More and more places are depositing checks internally with OCR processing and i wonder if the old rules apply that for a check to become negotiated an endorsement is required. I'm seeing checks that have no markings for negotiation. Is this considered OK? Or are the places that process checks without endorsing missing a step that can create issues?
More and more places are depositing checks internally with OCR processing and i wonder if the old rules apply that for a check to become negotiated an endorsement is required. I'm seeing checks that have no markings for negotiation. Is this considered OK? Or are the places that process checks without endorsing missing a step that can create issues?
I use a remote deposit machine to deposit payment checks sent in by customers, and the current machine (our 4th, long story!) is set up to take anything up to $25,000. Both the front and back of the check are read by the machine, but I have never been instructed to stamp or otherwise endorse the back, and I haven't had any problems.
posted by Glinn at 9:38 AM on May 23, 2012
posted by Glinn at 9:38 AM on May 23, 2012
We're like Glinn. We have a remote deposit machine in our office (our second in 5 months so maybe that isn't just glinn). We don't endorse the checks before putting them through the machine either.
posted by magnetsphere at 10:25 AM on May 23, 2012
posted by magnetsphere at 10:25 AM on May 23, 2012
Some remote deposit systems "stamp" the check digitally, after it has been scanned, by burning an endorsement onto the scanned image. I've seen these come through my bank account and the endorsement text is so clear, it's obvious that it wasn't scanned and was added afterwards.
Whether that is what's happening in every instance, or whether banks are just accepting and processing the deposit without checking for the endorsement (or have decided they don't care on small checks) I can't say.
posted by Kadin2048 at 1:03 PM on May 23, 2012
Whether that is what's happening in every instance, or whether banks are just accepting and processing the deposit without checking for the endorsement (or have decided they don't care on small checks) I can't say.
posted by Kadin2048 at 1:03 PM on May 23, 2012
Response by poster: I've seen it a few places, but in particular I've been thinking about it in regards to a client that receives checks for $10k + in this way. The OCR processor has an internal ink thing, but it's been empty for a while and it hasn't been a part of their check processing in at least a year. Copies of the check front and back are taken as part of the processing.
posted by readery at 1:21 PM on May 23, 2012
posted by readery at 1:21 PM on May 23, 2012
I think the only reason you need an endorsement is so someone else can't get their hands on the check and write "Pay to the order of Francis X. Grifter" on the back and cash it themselves.
posted by gjc at 4:18 PM on May 23, 2012
posted by gjc at 4:18 PM on May 23, 2012
This thread is closed to new comments.
As checks are being phased out, these codes become more important in transactions as listed by your bank.
Endorsements are not as prevalent today as they once were, due to the number of transactions recorded electronically.
I've deposted paper checks into may bank and not endorsed them and as long as they get paid, it doesn't matter.
posted by Ruthless Bunny at 9:28 AM on May 23, 2012