Use of Scanner and Program by Customer. Bank is providing the Scanner and Program to Customer to allow Customer to create Images of the paper checks received from Indirect Customer and to then transmit these Images electronically for the purpose of having ACH Transactions or Check 21 Transactions initiated. Indirect Customers’ accounts may be debited through such ACH Transactions, rather than the check clearing system. As such, the Indirect Customer will not receive their original cancelled paper checks through the check clearing system. These paper checks will be stamped “ELECTRONICALLY PROCESSED” by Customer or the Scanner and will remain with Customer for a period according to the Rules before being destroyed, unless Indirect Customer presents the check in person; in which case the transaction by such direct presentment would be subject to POS rules requiring that the check be stamped and returned to Indirect Customer after receiving their signed authorization. The images of these checks will be maintained by Bank for a period of 5 years. Should Customer or Indirect Customer need a check researched, Bank will provide the image from its archive during the record retention period. The original Source Document must be destroyed after 60 business days of the settlement date of each entry, unless Bank requests the original source document within that time frame.
Use of Scanner and Program by Customer. The Bank is providing the Scanner and Program to the Customer to allow the Customer to create quality images of the paper checks received from Indirect Customers and to then transmit these images electronically for the purpose of having Check 21 Transactions initiated. As such, the Indirect Customers will not receive their original cancelled paper checks through the check clearing system. The original paper checks will remain with the Customer under lock and key for a period of 90 days, then the paper checks will be destroyed (preferably shredded) to protect against the risk of fraud or erroneous entry of the check into the check processing system. If during the 90 days, the bank should request an original check, it must be provided to the Bank. The images of these checks will be maintained by the Vendor for a period of seven years. Should Customer or Indirect Customers need a check researched, the Bank will provide the image from its archive during the record retention period.
Use of Scanner and Program by Customer. The Bank is providing the Scanner and Program to the Customer to allow the Customer to create Images of the paper checks received from Indirect Customers and to then transmit these Images electronically for the purpose of having Check 21 Transactions initiated. (The scanner and required hardware must be maintained and cleaned periodically to ensure clarity of the images, and must not be placed in a location that is accessible to non-authorized individuals. All deposited checks must be payable to the subject account, must be in US dollars and payable through a Bank that is a member of the Federal Reserve system.) As such, the Indirect Customers will not receive their original cancelled paper checks through the check clearing system. These paper checks will be endorsed by the Customer and remain with the Customer for a period of ninety (90) days before being destroyed. The images of these checks will be maintained by the Bank for a period of seven (7) years. Should Customer or Indirect Customers need a check researched, Bank will provide the image from its archive during the record retention period. The Bank reserves the right to mandate specific internal controls at the Customer’s location(s), audit Customer’s operations and IT infrastructure, or to request additional Customer information.
