PREP Guide - Check Payments Flashcards
1
Q
What is a check?
A
A written order directing a bank to pay money as instructed.
Defined by statutory and regulatory bodies, including UCC and Reg CC.
2
Q
According to UCC §3-104, how is a check defined?
A
A negotiable instrument or an unconditional promise to pay; a draft payable on demand and drawn on a bank.
This definition is part of the Uniform Commercial Code.
3
Q
What does UCC §3-106 state about a check?
A
A check is a draft payable at a financial institution.
This is a specific definition within the UCC.
4
Q
What is the purpose of a check as defined in UCC §3-104?
A
Designed to transfer the amount of money for which it is written.
This ensures checks serve their primary function.
5
Q
According to UCC §3-108, when can a check be cashed?
A
On or after the date specified on the check.
This relates to the validity of checks.
6
Q
Who can a check be made payable to as per UCC §3-104/§3-109?
A
To a specific payee or to the bearer.
This provides flexibility in who can claim the funds.
7
Q
What does Reg CC §229.2(k) define as a check?
A
A negotiable demand draft drawn on or payable through a bank, a Federal Reserve Bank, or the U.S. Treasury.
This is a regulatory definition under Regulation CC.
8
Q
What other forms can a check take according to Reg CC §229.2(k)?
A
A U.S. postal money order or a traveler’s check.
These are included under the definition of a check.
9
Q
In Reg CC §229.2(k), what does the term ‘check’ exclude?
A
A noncash item or an item payable in a medium other than United States money.
This clarifies what is not considered a check.
10
Q
What is stated about drafts in Reg CC §229.2(k)?
A
A draft may be a check even if described by another term, such as money order.
This highlights the versatility of the term ‘check’.
11
Q
What does Reg CC §229.2(ggg) define as an electronic check?
A
An electronic image of, and electronic information derived from, a paper check.
This includes checks that have been digitized.
12
Q
What conditions must be met for an electronic check as per Reg CC §229.2(ggg)?
A
Sent to a receiving bank pursuant to an agreement and conforms with ANSI X9.100-187 standard.
This ensures that electronic checks meet specific regulatory standards.
13
Q
What does MICR stand for?
A
Magnetic Ink Character Recognition
MICR is a technology used to verify the legitimacy or authenticity of paper documents, especially checks.
14
Q
What information is included in the MICR line per Reg CC?
A
Numbers which may include:
* routing number
* account number
* check number
* check amount
* other information
The MICR line is printed near the bottom of an original check in magnetic ink.
15
Q
Where is the MICR line printed on a check?
A
Near the bottom of an original check or substitute check in magnetic ink
The MICR line is essential for the processing of checks.
16
Q
What is a standard size of a personal check generally used for consumer accounts?
A
Six inches
This size is standard in the United States for personal checks.
17
Q
What does the routing number identify?
A
All U.S. financial institutions
Each financial institution has its own unique routing number(s).
18
Q
What are alternative names for the routing number field?
A
The routing number field may also be referred to as:
* ABA (American Banking Association) number
* RTN (routing transit number)
* RT (routing transit)
These terms are used interchangeably in banking.
19
Q
How many digits does a routing number have?
A
Nine digits
This includes specific identifiers such as the Federal Reserve Routing number and the ABA institution identifier.
20
Q
What do the first two digits of the routing number represent?
A
Federal Reserve Routing district
These digits are crucial for identifying the district of the Federal Reserve Bank.
21
Q
What is the purpose of the third digit in a routing number?
A
Represents the branch office serving the bank
This digit helps in identifying the specific branch of the financial institution.
22
Q
What digits represent the ABA institution identifier in a routing number?
A
Digits 5 – 8
This identifier is unique to each financial institution.
23
Q
What is the check digit in a routing number?
A
Digit 9: Calculated value
This digit helps verify the accuracy of the routing number.
24
Q
What are the two forms of routing numbers currently in use?
A
MICR form and Fractional form
MICR form is a nine-digit machine readable format; Fractional form is a legacy format for manually sorted checks.
25
What does MICR stand for?
Magnetic Ink Character Recognition
## Footnote
MICR is used in automated processing of checks.
26
What is the primary use of the fractional form of routing numbers?
To aid in identifying check fraud
## Footnote
It provides a legacy format that can help verify information when checks are manually sorted.
27
What is the structure of the fractional form of a routing number?
Numerator and Denominator
## Footnote
The numerator includes city or state prefixes, followed by the ABA institution identifier; the denominator is the Federal Reserve routing symbol.
28
What must match between fractional form and MICR form numbers?
Fractional form and MICR form numbers
## Footnote
This ensures consistency and accuracy in routing information.
29
What is the purpose of a routing number in fractional form?
To determine routing if the MICR line is damaged and for fraud control
## Footnote
It allows for comparison of information to detect discrepancies.
30
What font is used for all characters on the MICR line?
E-13B font
## Footnote
This font is specifically designed for magnetic ink printing.
31
What is the character set used in E-13B font?
Characters are written in magnetic ink
## Footnote
It is possible for characters to be in the correct font but not printed in magnetic ink.
32
Fill in the blank: The fractional form of a routing number includes a city prefix (1-49) or _______ prefix (50-99).
state
## Footnote
The prefix indicates the location associated with the routing number.
33
True or False: The MICR form of routing number is only used for manual check sorting.
False
## Footnote
The MICR form is used in automated processing, while the fractional form is for manual sorting.
34
What example is provided for the fractional form of a routing number?
91-03/1221
## Footnote
This example illustrates how fractional routing numbers are formatted.
35
Identify the symbol:
Transit symbol
## Footnote
In front and back of Routing Number
36
Identify the symbol:
Amount Symbol
37
Identify the symbol:
On-Us symbol
38
Identify the symbol:
Dash symbol
39
# On the MICR
On-Us Feild include what numbers?
Account number and Serial number
## Footnote
Serial = Check number
40
What is the Amount Field in MICR?
Area of the MICR line on the document where the dollar amount is encoded
41
What is the maximum number of digits that the Amount Field can hold?
10 digits
42
What symbol identifies the Amount Field in the E-13B font?
43
What is the maximum allowed amount on a check?
$99,999,999.99
44
What does the On-Us Field include?
Fields 2, 3, and 4
## Footnote
The On-Us Field is specified by the financial institution on which the check is drawn.
45
What information may be included in the On-Us Field?
Drawer’s account number, check serial number, transaction or processing codes
## Footnote
The On-Us Field is variable and may contain specific details as designated by the financial institution.
46
What is the position of the on-us symbol in relation to the account number?
To the right of the account number
## Footnote
An additional on-us symbol is permissible but discouraged.
47
What does Field 2 represent in the On-Us Field?
Serial number field
## Footnote
This field is part of the On-Us Field structure.
48
What does Field 3 represent in the On-Us Field?
Account number field
## Footnote
This field is essential for identifying the account from which the check is drawn.
49
What is the purpose of Field 4 in the On-Us Field?
Optional field 4
## Footnote
This field can contain additional information as needed.
50
What transaction code may be included to designate Canadian items?
'45' transaction code
## Footnote
This code is used for items payable in U.S. funds.
51
What is the Routing Field?
Routing number or numeric identifier of a financial institution as assigned by the American Bankers Association (ABA) or its agent
52
What is the purpose of the Routing Field?
Used for routing purposes on checks and other MICR documents such as deposit tickets and check processing batch tickets
53
What symbols bracket the Routing Field?
The two transit symbols () - one on each side of the number
54
What must a Routing number be?
A valid routing number (not retired)
55
What does the EPC stand for?
External Processing Code
56
What is the EPC Field?
Single digit field located to the left of the routing number, reserved for special codes
57
What is the purpose of the EPC Field?
Tells financial institutions and other processors information regarding the correct handling or routing of a check or check data
58
Fill in the blank: The Routing Field is bracketed by the two transit symbols (_______).
59
What is the typical size of a check used for business checking accounts?
Longer than six (6) inches
60
What does the Aux On-Us field illustrate?
The position of the added MICR line information
61
Where is the Aux On-Us field located on a business-sized check?
To the left of the routing number field
62
What is the purpose of the Aux On-Us field? List its uses.
* Consecutive check serial numbers
* Account control information
* Product codes or other information
63
What is the drawer in a check transaction?
Party making the payment or the writer of the check
## Footnote
The drawer is responsible for ensuring there are sufficient funds in their account.
64
Who is the payee in a check transaction?
Party to whom the check is written or the party receiving payment
## Footnote
The payee can be an individual or an organization.
65
What is the role of the paying bank/drawee bank?
Bank holding the account on which check is drawn
## Footnote
This bank is responsible for processing the check and releasing funds.
66
What is a depositary bank?
Bank where check is deposited/cashed
## Footnote
This bank serves as the intermediary in the transaction.
67
Define endorser in the context of checks.
Payee who assigned the right to collect the amount to someone else
## Footnote
An endorser typically signs the back of the check to transfer ownership.
68
What is the primary method of exchanging check payments today?
As images
## Footnote
Remote deposit and other image-enabled processes have led to this change.
69
What has supported the growth in image exchange?
Unilateral truncation of paper checks
## Footnote
This is supported by the substitute check.
70
What consolidation has contributed to the growth in image exchange?
Consolidation of FRB offices
## Footnote
FRB refers to Federal Reserve Banks.
71
What movement has aided the transition in check payments?
Movement to all electronic processes
## Footnote
This includes the adoption of digital technologies in banking.
72
What services have seen acceptance and growth in relation to check payments?
RDC and mobile RDC services
## Footnote
RDC stands for Remote Deposit Capture.
73
What are on-us items?
Drawn on the BOFD
## Footnote
BOFD stands for the bank of first deposit.
74
What are transit items?
Drawn on a bank other than the BOFD
75
How do transit items reach the paying bank?
Through several different channels including:
* Direct exchange with the paying bank
* Exchange via the Federal Reserve banks
* Other correspondents or clearing banks
76
True or False: On-us items are drawn on a bank other than the BOFD.
False
77
Fill in the blank: Transit items are drawn on a bank other than the _______.
BOFD
78
What are the methods by which transit items can reach the paying bank?
- Direct exchange with the paying bank
- Exchange via the Federal Reserve banks
- Other correspondents or clearing banks
79
This is an image of Image Exchange - ____ Collection
Forward Collection
80
Name this image
Check Collection 101
81
What are the channels through which checks can be cleared?
Checks can be cleared via multiple channels including:
* Physical check
* Image
* Converted image to substitute check (IRD)
* ACH debit
## Footnote
Each channel offers different methods for processing checks.
82
What is an ARC in the context of checks?
ARC stands for Accounts Receivable Entry.
## Footnote
This is a type of ACH debit for checks that are eligible for conversion.
83
What does POP stand for in check processing?
POP stands for Point-of-Purchase Entry.
## Footnote
This refers to a specific method of converting checks at the point of sale.
84
What is a BOC entry?
BOC stands for Back Office Conversion Entry.
## Footnote
This entry type is used for converting checks in a back-office setting.
85
What does RCK represent in check processing?
RCK stands for Represented Check Entry.
## Footnote
This is a type of entry used for handling checks that have been represented.
86
Fill in the blank: A check can be cleared as a _______ less frequently today.
physical check
## Footnote
The use of physical checks has declined with the rise of digital processing methods.
87
What are funds available to an account holder for withdrawal or other use called?
Availability
## Footnote
May include funds from an overdraft/line of credit product and classified as available balance.
88
What is the definition of Available Balance?
Funds in account available for immediate use
## Footnote
Generally, the balance as of previous business day's processing, plus or minus any pending transactions.
89
What is Float in banking terms?
Provisional credit applied to the account of the check depositor
## Footnote
Timing of clearing can result in float; can be positive or negative.
90
What is Negative Float?
Customer Float billed is greater than bank float incurred
## Footnote
Negative position from customer’s point of view.
91
What is Positive Float?
Bank float incurred is greater than customer float billed
## Footnote
Positive position from customer’s point of view.
92
What results in checks in the process of collection appearing briefly in the accounts of both depositary and paying banks?
Delays in check clearing
93
What are Exceptions in banking transactions?
Transactions requiring further investigation before final disposition
## Footnote
Includes returns and adjustments.
94
What is a Return in banking terms?
Paying bank determines not to pay a check based on a specific reason
## Footnote
Must indicate item is a return and reason for return.
95
What must be included in a Return notice?
Indication of return and reason for return
## Footnote
Must return in accordance with statutory and regulatory guidelines.
96
What are Adjustments in banking?
Involves researching and resolving errors during item processing
## Footnote
Errors can be caused by mis-encoding, mis-routing, or incorrect posting.
97
What conditions may initiate reclamation actions against the presenting bank?
Check was presented for payment over a forged endorsement, benefit check negotiated after payee’s death, or materially altered check
98
What is the time frame for reclamation if the payee is deceased?
1 year from the date the check was presented for payment
99
What is the liability of the presenting financial institution in a reclamation?
Principal amount of check and applicable accrued interest, penalties, and administrative fees
100
What happens if a reclamation is not paid or protested within 31 days?
Direct debit process occurs
101
Who can submit reclamation protests?
Only financial institutions
## Footnote
Customers or correspondents cannot submit protests.
102
What is the deadline for a bank to respond to the Notice of Direct Debit?
30 calendar days from the date of notice
103
What is required in a protest for a reclamation?
Written statement and supporting documentation proving bank is not liable
104
What continues to accrue while a protest is under review?
Interest, penalties, and administrative fees
105
True or False: Protests can be submitted to any person other than the bank to which reclamation was directed.
False
106
Fill in the blank: Protests received more than ______ days from reclamation date are unacceptable.
60
107
What must a protest not include to be considered acceptable?
Insufficient documentation to substantiate them
## Footnote
Protests that attempt to transfer liability from bank to prior indorser are also unacceptable.
108
What are the two main divisions of operational processes?
Day 1 and Day 2
109
What functions are included in Day 1 operational processes?
* Process incoming/outgoing cash letters and deposits
* Proof and Capture
* Repair
* Balancing and Reconciliation
* Posting to accounts (customer and GL)
110
What functions are included in Day 2 operational processes?
* Handling and resolution of exception items
* Exceptions: Items rejected from DDA posting on Day 1
* Incoming Returns/Chargebacks
* Research and Adjustments
111
What does Day 1 typically involve regarding image processing?
* Receive incoming file from remote deposit channels or other financial institutions
* Work Set-up/Proof & Encoding if required
* Image quality analysis (IQA) and Code line match
* Electronic (virtual) capture process
* Edit rules and field validations
* Duplicate item detection
* Image reject/repair processes
* Balancing
* File transmission(s)
* Settlement
* File Control - Management of file receipt and transmission
112
Fill in the blank: Day 1 functions include processing incoming/outgoing cash letters and deposits, ______, repair, balancing, and reconciliation.
Proof and Capture
113
What is the purpose of File Control in Day 1 processes?
Management of file receipt and transmission to ensure all files are properly received and/or sent and are processed/settled with correct totals
114
What are the key components of balancing in Day 1 processes?
* Confirmation and verification of control totals
* Preparation of cash letters (paper and/or check image files)
115
What is the function of image exceptions in Day 2 processes?
Create return item pull file to retrieve images from archive and examine image to identify BOFD or utilize indorsement records
116
True or False: Incoming returns in Day 2 processes are items matched to the bank’s 'all items file'.
True
117
What happens to items that are charged back to the depositing customer?
* Images of items to be charged back provided to customer
* Printed notice sent or IRD created
118
What is the purpose of outgoing returns in Day 2 processes?
Create outgoing image cash letter file and transmit it to FRB, clearinghouse, correspondent, or another bank
119
What does the adjustment process in Day 2 include?
* Item retrieval
* Adjustment case resolutions
120
Fill in the blank: The electronic (virtual) encoding for Day 2 processes includes BOFD, amount, and ______.
return reason code
121
What does the term 'duplicate item detection' refer to in Day 1 processes?
Identifying and preventing the processing of duplicate items
122
What is the image reject/repair process in Day 1?
Processes to handle images that do not meet quality standards or have errors
123
124
125
What is the purpose of the Uniform Commercial Code?
Model state law
126
What must happen in all states with the Uniform Commercial Code?
Must be adopted in each state
127
What does Article 3 of the Uniform Commercial Code cover?
Negotiable Instruments - Definition and requirements for the negotiation, transfer and endorsement of these instruments
128
What is addressed in Article 4 of the Uniform Commercial Code?
Bank Deposits and Collections - Covers check collection, payments, liabilities, related time frames and responsibilities
129
What is the purpose of Regulation CC?
To establish rules regarding the availability of funds and the collection of checks
## Footnote
Regulation CC aims to provide consumers with clearer information on when their deposited funds will be available for withdrawal.
130
What does Subpart A of Regulation CC cover?
Purpose, organization of subparts, definitions, administrative enforcement
## Footnote
Subpart A sets the foundation for understanding the regulation's structure and enforcement.
131
What is addressed in Subpart B of Regulation CC?
Availability of Funds and Disclosures of Funds Availability Policies
## Footnote
Subpart B outlines the timing and conditions under which banks must make deposited funds available to consumers.
132
What does Subpart C of Regulation CC focus on?
Collection of Checks
## Footnote
Subpart C details the procedures and responsibilities involved in the collection of checks, including the roles of banks.
133
What is the topic of Subpart D of Regulation CC?
Substitute Checks
## Footnote
Subpart D provides guidelines regarding the use and legality of substitute checks in banking transactions.
134
What does Regulation J provide?
Legal framework for DFIs to collect checks and other items and to settle balances through the Fed
## Footnote
DFIs refer to Depository Financial Institutions
135
What is Regulation J used in conjunction with?
Regulation CC
## Footnote
Regulation CC deals with the availability of funds and the collection of checks
136
How is Regulation J referenced?
By operation circulars for warranties
## Footnote
Operation circulars provide guidance and instructions related to the regulation
137
What do the ECCHO Rules govern?
Electronic checks exchanged between ECCHO members by agreement
138
What foundational documents are the ECCHO Rules built on?
UCC and Reg CC
139
What provisions are included in the ECCHO Rules?
Forwards presentment, returns, and adjustments
140
What do Federal Reserve Operating Circulars govern?
Exchanges to/from Reserve banks
## Footnote
They establish the rules and procedures for transactions involving Reserve banks.
141
What types of items are handled under Federal Reserve Operating Circulars?
Cash items and noncash items
## Footnote
Cash items typically refer to currency and checks, while noncash items may include electronic payments.
142
What provisions are included in Federal Reserve Operating Circulars?
Provisions for forward, returns and adjustments
## Footnote
These provisions outline the procedures for managing various transaction scenarios.
143
What does Regulation CC define?
The electronic check and electronic returned check
## Footnote
Regulation CC outlines the framework for electronic check processing and returns.
144
What is covered in Subpart A of Regulation CC?
Authority and purpose of the regulation and definitions
## Footnote
Subpart A establishes the foundational elements of Regulation CC.
145
What does Subpart B of Regulation CC address?
Funds availability and disclosure requirements
## Footnote
This subpart is managed under joint jurisdiction with the Consumer Financial Protection Bureau (CFPB).
146
What is the focus of Subpart C in Regulation CC?
Interbank electronic check exchange
## Footnote
Subpart C specifically applies to transactions between banks.
147
What does Subpart D of Regulation CC support?
Substitute checks
## Footnote
This is related to the Check 21 Act, which allows for electronic check substitutes.
148
What type of rules does Regulation CC defer to for many terms of exchange?
Interbank rules and agreements
## Footnote
These rules establish operational terms for electronic check delivery and handling.
149
What are some aspects that interbank rules/agreements establish?
Where/how/when electronic checks are delivered, whether banks act as intermediaries, exceptions and variations, terms for dealing with exceptions and adjustments
## Footnote
These aspects help standardize the exchange process between banks.
150
What does the UCC apply to in relation to electronic checks?
Electronic checks in interbank exchange
## Footnote
The UCC provides a legal framework for these transactions.
151
What may interbank rules require from a bank when exchanging images?
Additional warranties and indemnities
## Footnote
This includes warranties under ECCHO Rules for Forged or Counterfeit checks.
152
What does the UCC and bank-to-customer agreement address?
Remote deposit capture (RDC) deposit, payment, and the customer relationship
## Footnote
This is crucial for understanding the customer experience in check processing.
153
What does Article 3 of the UCC cover?
Negotiable instruments such as checks, money orders, or traveler’s checks
## Footnote
Article 3 specifically addresses the law governing these financial instruments.
154
What does Article 4 of the UCC cover?
Bank deposits and collections
## Footnote
Article 4 outlines the regulations regarding bank transactions and collections.
155
What is the purpose of the UCC as defined in the first article?
To simplify, clarify, and modernize the law governing commercial transactions
## Footnote
The UCC aims to enhance the efficiency and clarity of commercial law.
156
What is one of the policies of the UCC?
Permit the continued expansion of commercial practices through custom, usage, and agreement of the parties
## Footnote
This policy allows for flexibility in commercial transactions.
157
How does the UCC aim to affect the law among various jurisdictions?
Make uniform the law among the various jurisdictions
## Footnote
The goal is to create consistency in commercial law across different regions.
158
What is the UCC considered?
Model law
## Footnote
The UCC serves as a template for states to adopt their own commercial laws.
159
True or False: The UCC has legal effect in a State or U.S. territory without being enacted by individual legislatures.
False
## Footnote
The provisions of the UCC must be enacted by state legislatures to have legal effect.
160
What does Federal Reserve Regulation CC implement?
Regulation CC implements both The Check Clearing for the 21st Century Act and the Expedited Funds Availability Act.
## Footnote
Regulation CC is issued by the Board of Governors of the Federal Reserve System.
161
What acts are included in Regulation CC?
Regulation CC includes:
* The Check Clearing for the 21st Century Act
* The Expedited Funds Availability Act
## Footnote
The EFA Act is codified at 12 U.S.C. 4001–4010 and the Check 21 Act at 12 U.S.C. 5001–5018.
162
What is the purpose of Regulation CC?
The purpose of Regulation CC is to implement the Expedited Funds Availability Act and the Check Clearing for the 21st Century Act.
## Footnote
It is issued by the Board of Governors of the Federal Reserve System.
163
Fill in the blank: Regulation CC implements the _______ and the _______.
Check Clearing for the 21st Century Act, Expedited Funds Availability Act
164
True or False: Regulation CC is only related to the Expedited Funds Availability Act.
False
## Footnote
Regulation CC implements both the Expedited Funds Availability Act and the Check Clearing for the 21st Century Act.
165
Where are the electronic check and the electronic returned check defined?
Regulation CC §229.2 (ggg)
## Footnote
This regulation specifies the definitions and standards for electronic checks and returned checks.
166
What constitutes an electronic check?
An electronic image of, and electronic information derived from, a paper check
## Footnote
This definition indicates that the electronic check is based on a paper check.
167
What constitutes an electronic returned check?
An electronic image of, and electronic information derived from, a paper returned check
## Footnote
Similar to electronic checks, this refers to the electronic representation of returned checks.
168
What must an electronic check conform to?
ANSI X9.100-187 standard
## Footnote
This standard governs the format and processing of electronic checks.
169
What is required for sending an electronic check to a receiving bank?
Agreement between sender and the receiving bank
## Footnote
This agreement ensures that both parties consent to the electronic processing of the check.
170
What is the fractional form of a check routing number?
Fractional RT = 91-03/1221
## Footnote
The fractional form represents the routing number in a specific format, where the numerator and denominator have distinct meanings.
171
What does the numerator in the fractional routing number represent?
City prefix (1-49) or State prefix (50-99)
## Footnote
The numerator indicates the geographical location of the financial institution.
172
What follows the prefix in the numerator of the fractional routing number?
ABA institution identifier (zero-suppressed)
## Footnote
This identifier uniquely identifies the financial institution.
173
What does the denominator in the fractional routing number represent?
4-digit Federal Reserve routing symbol
## Footnote
This symbol is used to route items through the Federal Reserve system.
174
How does the fractional form relate to the MICR form?
The ABA and Federal Reserve numbers match corresponding numbers in MICR form without leading zeros
## Footnote
This relationship helps verify routing information in case the MICR line is damaged.
175
What is the purpose of using the fractional form of routing numbers?
To determine routing if MICR line is damaged and for fraud control
## Footnote
Comparing the MICR line information to the fractional form helps prevent fraudulent activities.
176
Who assigns routing numbers in the United States?
The ABA through their official registrar, Accuity
## Footnote
The American Bankers Association (ABA) manages the assignment of routing numbers.
177
What is the significance of the ABA Routing Number?
Identifies the specific financial institution responsible for payment of a negotiable instrument
## Footnote
This number is crucial for processing checks and electronic payments.
178
How many active RTNs are estimated to be in use currently?
About 28,000
## Footnote
Each financial institution in the U.S. has at least one routing number, and many have multiple.
179
True or False: Every financial institution in the United States has multiple routing numbers.
False
## Footnote
While many institutions have multiple RTNs, each has at least one.
180
What is the purpose of the aux on-us field on a check?
The aux on-us field is typically used for the placement of consecutive serial numbers.
181
Where is the aux on-us field located on a check?
To the left of the routing field on the MICR line.
182
What appears to the left of the Auxiliary On-Us field if included?
External Processing Code (EPC).
183
Are checks with an aux on-us field eligible for conversion to ACH entries?
No, they are ineligible for conversion to ACH entries ARC, BOC, POP.
184
What type of checks typically use the aux on-us field?
Business-sized checks.
