One of the most common points of confusion in the check image exchange process is the notion that all imaged checks contain an electronic Bank of First Deposit (BOFD) endorsement record (Check Detail Addendum A record (Type 26)). Although the DSTU  x9.37-2003 standard and industry’s Universal Companion Document detail the requirements of image exchange, they lack clarity regarding how files should be constructed from a work flow perspective.

ECCHO (Electronic Check Clearing House Organization) has provided final rule clarity to this issue. i3G provided input in the rule process. 

To read more about i3G's recommendations on electronic endorsements and various scenarios in interpreting electronic endorsements, download our paper by clicking here.

With all of the financial institutions using the same “play book” when it comes to endorsement record population and procedures, the industry can collectively insulate the customer for intra-bank returns issues and delays and further enhance electronic efficiencies intended with Check 21 legislation.