Endorsements

Endorsements Presentation showing how endorsements are transferred/applied to electronic images and IRDs

Under Check 21 a reconverting bank shall ensure that the substitute check bears all endorsements applied by parties that previously handled the check (whether in electronic form or in the form of the original paper check or a substitute check) for forward collection or return.

As paper checks are converted to electronics and back to paper IRDs, the endorsement chain must be maintained. The DSTU X9.37 format includes endorsement records. The ANSI X9.100-140 standard include areas for the identification of the truncating bank and the last reconverting bank. The X9.100-140 standard also requires that special characters be used to identify any reconverting bank and the BOFD in the endorsements. Special areas have been defined on the back of the IRD for the printing of the electronic endorsements.

Endorsements can appear within the image as they appeared on the original check. Electronic endorsements are provided for within the DSTU X9.37 standard and can be printed in specific areas on the IRDs. Regardless of when a bank endorses the item, either prior to or after imaging, the X9.37 record includes the endorsement information.

Click here (PDF) (PowerPoint) to view a pictorial representation of Image and Document Flow Overview showing how the endorsements will be transferred and/or applied as items flow from original checks to electronic images and IRDs. Also included in this presentation is a description of which data elements from X9.37 are used on the IRD.

This document was developed in conjunction with the DSTU X9.90 Image Replacement Document standard by the X9B3 workgroup. Andy Garner of Wachovia Bank, the chair of this work group deserves special thanks for his excellent work on this document.