ibm trained me on check sorters for banking systems this year. the base machine is over 1/2 million dollars. yearly maintenance is an enourmous expense.

they may maintain the check any longer but they do maintain a digital image of the check including signatures and all. The courts say no problem for legal issues.

reducing the overhead of checking accounts will lead to increased profits for the banks <you don't think they will reduce fees do you?> good for them, status quo for us. Frankly i am amazed they have not phased checks out completely yet. Predictions on our side say around 2012 checking accounts won't exist anymore.

mike

Quoted: Quoted: Anybody else feel this way, or am I the only livin person who still requires his bank provide this service? Thanks for your comments fellas, hard as it is to believe, appears I am the exception to the rule and the only livin American left that receives his "original" checks back.............. This un-reported method of disposal for my "original check" still gives me the willies, though. Mike

so stop writing checks then.

I am down to one check a month now and life hasn't been easier for paying bills. The bank takes the resposibility for mailing a check if need be <no postage> no more wondering when it will clear, No late fees EVER. Too many positive aspects not to do it. In 8 years i have had one problem. it was with sprint wireless. <sprints fault not the banks> i called the bank and THEY handled the issue with sprint. one phone call and i was done with it.

mike

Quoted: There are going to be poor images lost images problems galore -------- And we had no say in it...........................

nope, digital imaging has been around for AT LEAST 10+ years. I service the machines that sort and scan those checks. Missing or mismatched images are not only rare they are almost impossible to have occur due to the way the systems work. Images are as good as or typically better than the current microfiche system that are in place in most areas. In fact the MF was more prone to bad or missing images than the digital systems as there is real time data analysis vs having to wait for film processing.

mike

Quoted: nope, digital imaging has been around for AT LEAST 10+ years. I service the machines that sort and scan those checks. Missing or mismatched images are not only rare they are almost impossible to have occur due to the way the systems work. almost. Maybe thats good enough for you...

the rate is better than The MF system and how many checks do you think get LOST in the sorting equipment never to be seen again? I removed 30+ a week that are simply shredded beyond all recognition. At that point all you have is the MF image which is slow and painful to retrieve in a timely fashion. The digital system is instant. Trust me. THIS IS A MUCH SUPERIOR SYSTEM.

mike

Quoted: There is one store by me that don't "take" checks you give them a check to pay for your stuff with and they scan it through a little machine that files the check automaticly and writes void on the check with the amount you payed. This is not Check 21 this type of transaction is ACH Edited for spelling

This is incorrect correct in the sence that it's not a Check21 transaction.  This type of transaction is a POP (Point of Purchase) transaction.  It is a conversion of a paper check item to an electronic ACH (Automated Clearing House) item.  A POS (Point of Sale) transaction is a similar transaction, but instead of using a check the buyer uses a debit card.

Check21 makes legal the conversion of certain paper check items to electronic payments.  The legislation also reduced the number of days in which you can dispute with your bank incorrect debits to your account from 60 to 40 days.  Only certain documents can be converted to electronic items.  For example, corporate checks and checks draw off certain accounts (such as Money Markets) are not eligible for conversion.  This will change in the next couple of years.

If a paper item is converted and the item is returned (for insufficient funds or any other reason), Check21 allows the electronic image of the original check item to be re-printed (including the MICR line) and re-presented for payment.  This is called a check replacement document.

Most remittance processor vendors and banks destroy the converted paper items within 14 days of conversion.  Many do it sooner.  The original document image is retained by most processors a minimum of seven years.  

I rarely write checks anymore anyway.  I much prefer electronic payments.  It’s easier and actually more secure.  

Mike, what kind of check sorters does IBM use?  Are they IBM built machines or are you guys using Unisys or OPEX machines?  


Edit - the part in red to be more specific.  

BTW, most companies allow an "opt-out" for their customers.  The big billers will start converting your checks unless you notify them not to convert it.  Oh, and writing something on the check that says "do not convert" will NOT stop the conversion.  

We are still using the IBM 3890's. the last one came off the assembly line in october. We have been told by the industry to expect to be completely out of the paper check business by 2012 with SHARP decreases each year up to it.

For you guys griping about checks, get used to it. they won't be around much longer. Like it or not they are going to drag you into the 20th century