Check exception items are checks that for a number of reasons cannot be mechanically processed by a bank or financial institution. These items include checks drawn on foreign banks, checks with no signature and sometimes no rear endorsement, stop payment items or items drawn on closed accounts, items with poor image quality, or for other reasons that don’t meet minimum criteria set by the bank.
Exceptions items slow or sometimes stop the workflow process and that costs both time and money for the bank or financial institution. There are many documents that are known to cause exception item processing – either rescanning or manual keying of the items. These items include money orders, traveler’s checks, savings bonds, corporate payroll checks with weak MICR, and others.
Depending upon the operational setup, these items are either set aside for later processing or sent to a back office for reprocessing. In either case, it delays the deposit and requires additional personnel or time to process these items. That means added cost and an impact to the overall customer experience.
Digital Check has developed Special Document Handling (SDH), a process for streamlining many of the recurring exception items that are processed by a bank or corporate customer. SDH identifies these items via their routing/transit number and sometimes by the account number to apply special thresholding settings to the document to produce a higher quality image that will pass image quality analysis (IQA) tests. Thresholding is the process of removing the background image from the item while retaining the important information such as the courtesy and legal amounts, to whom the item is written, and the signature. SDH is a unique feature offered by Digital Check for Digital Check scanners.