Santa Fe Springs, Calif. – June 11, 2018 – Reg CC, enacted in 1992, is getting a modern makeover to acknowledge the fact that today’s check collection world is now virtually entirely electronic. In June 2017, the Federal Reserve issued final amendments to Reg CC. These amendments will take effect on July 1, 2018, and they aim to recognize current collection practices.
Banks receiving a duplicate deposit from a paper check previously deposited using remote deposit capture will now be indemnified for that deposit plus any interest compensation and expenses related to the check. However, there will be an exception preventing banks from making indemnity claims if they accept the original check containing “a restrictive endorsement inconsistent with the means of deposit, such as ‘for mobile deposit only.’
According to the Federal Reserve, the endorsements may reduce accidental double deposits. They may also encourage banks receiving funds by remote capture to implement measures minimizing fraudulent deposits.
According to the guidelines, bankers should take steps to use restrictive endorsement to help reduce double presentment of such items to minimize accidental and/or fraudulent deposits.
“Mitigate your risk associated with duplicate check deposits by implementing a simple solution to satisfy the FFIEC Reg CC amendment changes,” says Steve Traut, Senior Vice President of Sales at Superior Press. “Whether for mobile deposit or traditional RDC deposits, pre-printed Restrictive Endorsement stamps that comply with Federal Reserve guidelines are the fastest path to implementation.”
As a single source provider of cash management fulfillment solutions with more than 85 years of experience, Superior Press supports banks as they enact new commercial customer processes or internal bank procedures to meet the new requirements:
- Superior Press can facilitate identification of the originating bank, reducing duplicate deposit occurrences making it easier for end users to identify the originating bank.
- Superior Press offers streamlined ordering of endorsement stamps together with the RDC check scanners saving time and reducing data entry and order tracking and billing.
Additional steps banks will want to take to prepare:
- Update your mobile Deposit Agreements to include Restrictive Endorsement requirements for mobile deposits.
- Communicate this requirement to your mobile deposit customers.
- Ensure your mobile application reminds customers to use Restrictive Endorsement when making mobile deposits.
- Include a pre-printed Restrictive Endorsement stamp that complies with Federal Reserve guidelines with all your business check scanner orders.
- Educate check operations staff on identification and appropriate actions on items missing Restrictive Endorsement.
Trusted by financial institutions since 1931, Superior Press combines financial industry expertise with state-of-the-art financial printing capabilities to service the valuable commercial clients of the nation’s top banks. Superior Press specializes in providing complete, personalized treasury management solutions including check printing, financial forms, cash vault supplies, treasury supply call centers, and check cash hardware and asset fulfillment including Remote Deposit and Remote Cash Capture. — www.SuperiorPress.com
For Bulk Stamp Orders Contact: Steve Traut
Media Contact: Naja Hayward