Check 21 Processing – Teller Capture

Check 21 Processing – Teller Capture is a feature within the FLEX system that enables credit unions to capture drafts at the point of transaction and generate a cash letter for processing. This functionality is accessed via the teller drawer within Transaction Entry.

Prerequisites

Before utilizing Check 21 Teller Capture and Cash Letter features, ensure the following:

  • Each workstation designated for check processing via Teller Capture requires a scanner and additional software installation.
  • Contact the Training Department for initial setup and configuration within FLEX.

Transaction Entry/Inquiry – Drawer

Transactions can be processed in two primary ways:

  1. Key Transaction First, Then Scan Checks:
    • Key in the transaction details.
    • Press Enter to move the transaction to the lower portion of the screen, which will prompt for the teller drawer.
    • Once the drawer is displayed, place the checks into the scanner.
    • Click Scan Checks.
    • The scanned check(s) will appear in the drawer, updating the check count and total amount (unless an exception occurs).
    • Click OK or press Enter to post the transaction(s).
  2. Scan Checks First, Then Key Transaction:
    • Before entering any transaction(s), click on Drawer to display the drawer in the bottom panel.
    • Place the check(s) into the scanner.
    • Click Scan Checks.
    • The scanned check(s) will display in the drawer, updating the check count and amount (unless an exception occurs).
    • Click OK or press Enter to proceed with keying in the transaction(s).
    • The system will update the Transaction Entry bar. Enter the suffix, transaction code, and any other applicable information to complete the transaction.

Exception Processing

Exceptions occur when the scanner or check reading software cannot accurately read check information (e.g., image quality, invalid check numbers, invalid MICR information).

  • Exception Notification: When an exception occurs, a pop-up message will display the check image and the reason(s) for the exception.
  • Manual Correction: It is crucial to verify all information along the MICR line and the check amount. Users will most likely need to manually enter the necessary information to proceed.
  • Exception Screen Options:
    • Show All: If checked, all available MICR fields will display.
    • Front/Back: Allows viewing of the front and/or back of the scanned check.
    • Rescan Check: Allows rescanning of the check if necessary.
    • Delete: Deletes the individual check. If the transaction is already completed, deleted images must be rescanned to be included in the batch scan and cash letter. Otherwise, the transaction will need to be reversed.
    • Delete All: Deletes all checks scanned in the current batch.

Check Information Fields (within Exception Screen)

  • Aux On-Us: Federal Reserve recognized check number, commonly used on business checks.
  • Routing & Transit: Indicates the Routing & Transit number.
  • Account (On-Us): Indicates the Account Number.
  • Check #: Indicates the check number.

On-Us Check Information (within Exception Screen for On-Us Checks)

When an on-us check is scanned, an additional section displays its information. By default, on-us checks are not included in the Cash Letter tab as they are cleared and imaged to the member account at the time of transaction.

  • Account: Indicates the On-Us account number.
  • Suffix: Indicates the On-Us suffix.
  • Suffix Avail: Indicates the amount currently available in the On-Us suffix.
  • CP (Courtesy Pay): Indicates the Courtesy Pay amount available for the On-Us suffix.
  • OD (Overdraft): Indicates any overdraft amount available based on configured overdraft codes.
  • Total Avail: Indicates the total amount available from the suffix, courtesy pay, and overdraft.

Manually Entering Check(s)

If a check cannot be scanned, it can be manually entered through the drawer.

  • Procedure: Click Manually Enter in the drawer to convert it for manual entry.
  • Important Note: Manually entered checks must be scanned in Batch Capture (refer to Batch Capture Documentation) to be included in the cash letter.
  • History Record: If manually entered, the image will be available through Check History in Check 21 Processing, but it will not be tied to the transaction or available in member history.

Check Cashing

Cashing a Single Check

  1. Open the drawer.
  2. Scan the check the member wishes to cash.
  3. The check(s) will display in the drawer, updating the check count and amount.
  4. Check the Cashed box. This will place the cash amount in the Cash Back field.
  5. Click OK or press Enter to proceed with the transaction.

Cashing Multiple Checks

  1. Open the drawer.
  2. Scan all checks to be cashed.
  3. Right-click any check within the drawer.
  4. Select Cash/Uncash All. This will mark all checks as cashed and update the Cash Back box with the total amount.
  5. Click OK or press Enter to complete the transaction(s).

Check Received with Cash Back

If a member wants cash back from a deposit (not cashing the full amount of the check):

  1. Instead of checking the Cashed box, enter the partial amount in the Cash Back box.
  2. The remainder of the check received can then be deposited.
  3. Click OK or press Enter to proceed with the transaction.

Check Cashing Fees

  • Automatic Population: If configured, fees for cashing checks will automatically populate in the Fee box, deducting the fee amount from the Cash Back box.
  • Override Fee: To override the check cashing fee, check the Override Check Cashing Fee box. This will open the Fee field and zero out the amount, allowing a different fee amount to be entered.

On-Us Check Clearing

  • Automated Clearing: Teller Capture assesses available funds for on-us checks and performs overdrafting and courtesy pay at the time of transaction. Tellers no longer need to manually transfer funds to cover on-us checks presented at the counter.
  • Insufficient Funds: If an on-us check is presented and the issuing account has insufficient funds (including overdraft and courtesy pay), the teller will be prompted to either allow the account to go negative or remove the check from the teller drawer. The teller must be authorized to take accounts negative in Teller Configuration.

Cashed Checks – History Record

  • History Record: Cashed checks may write a history record to the base share, showing the amount cashed (if configured). This does not affect the account balance.
  • Image Attachment: The check image will be attached to the history comment and can be viewed by right-clicking on the check.

Transaction Entry/Inquiry – Viewing Check Images

To view a scanned check image from a member’s history:

  1. Right-click on the transaction in the member’s history.
  2. Click Reference # Detail.
  3. The Reference # Detail screen will display Transactions and Balancing Entries.
  4. Highlight the balancing entry.
  5. Click View Check to see the image(s) attached to the transaction.
  6. The front and back of the image(s) can be displayed, or the check can be printed.

Note: Only checks scanned via Transaction Entry/Inquiry can be viewed this way. Checks scanned via Batch Capture can only be viewed within Check 21 Processing.

Teller Drawer Balancing Screen

Check images can also be viewed in the Teller Drawer Balancing screen from the Detail tab until End of Day processing.

  1. Highlight the line item.
  2. Right-click and select View Check.
  3. The front and back of the image(s) can be displayed, or the check can be printed.

Printing Check Images

  • From Member History: A Print All Checks button is available within Transaction History.
    • Note: This feature will print all check images found for the selected suffix.

Balancing

  • Verification: Verify that teller drawer check totals in Teller Balancing match the Cash Letter Checks totals within the Check 21 Processing – Cash Letter tab.
  • Access: Access teller balancing (per teller) and locate the Cash Letter Checks total.

Cash Letter

Scanning checks through Teller Capture removes the posting step from the Batch Capture tab in Check 21 Processing, unless a check was manually entered through Transaction Entry/Inquiry.

  • Access: Check 21 Processing is located under Operations in the FLEX Main Menu.

Cash Letter Tab

The Cash Letter Tab automatically displays all unprocessed checks until filters are applied.

  • Exclude Today: If checked, only unprocessed checks scanned and posted prior to the current date will display. This is useful for building and sending cash letters the next day for previous day’s checks.
  • Build & Send: Builds and sends the cash letter based on selected filters. It is recommended to balance all checks before using this option.
  • My Teller: Filters for checks scanned only by the currently logged-in teller ID and branch.
  • My Branch: Filters for checks scanned by the current logged-in teller ID’s branch location (determined by workstation).
  • Filter: Allows filtering for additional items such as scan date, batch ID, check #, etc.
    • Note: If any of the above filters are used, the built and sent cash letter will only include checks listed as a result of that filter.
  • Editing Checks: Checks can be edited, viewed, printed, or deleted from the cash letter prior to posting.
    • Important: Deleting a check from the cash letter does not reverse the transaction. However, reversing a transaction will automatically delete the check(s) from the cash letter if Teller Capture was used.
  • Building Frequency: Depending on credit union preferences, a cash letter can be built multiple times for each teller, each branch, or for the entire credit union.
  • File Creation: Once Build and Send is selected, the system will create a file on the credit union server for uploading to the processor, or for FLEX to process.

Cash Letter History Tab

This tab provides a historical record of every cash letter that has been sent.

  • Detail: Clicking Detail allows users to view all checks sent in the selected cash letter. Checks can also be viewed or printed from here.
  • Resend: Cash Letter(s) can be resent from this screen by right-clicking on the selected cash letter and choosing Resend.
    • A resent cash letter will build/send immediately.
    • The existing processed date will change to the current system date within the Cash Letter History tab.
  • Error Handling: This tab may also display unprocessed cash letters or those that resulted in an error during the build and send process. These will appear in red without a processed date. If the system does not remove them by end-of-day processing, they can be resent by right-clicking and selecting Resend.
  • Caution: Exercise caution when resending cash letters. Verify the previously sent cash letter’s record count and total to avoid resending an incorrect cash letter, which could cause checks to attempt to clear accounts a second time.

Check History Tab

The Check History Tab is initially blank until a filter is used to display processed checks. Individual checks displayed in the results can be viewed, printed, or resubmitted for processing.

  • Filtering: Click Filter to display filter options. Choose options from the drop-down, click Add, and then click Run to display the check history meeting the criteria.
  • Resubmitting Checks:
    • Highlight a check to view or print.
    • To resubmit a check to the cash letter for processing, right-click and select either Resubmit – No Change or Resubmit – New Image. This will add the check to your current cash letter for reprocessing during the next build and send.
    • Resubmit – No Change: Submits the original check image to the current cash letter for reprocessing.
    • Resubmit – New Image: Prompts for a new image to be scanned. Once scanned, the check is added to the current cash letter for reprocessing.

On-Us Tab

If credit union procedures require on-us checks to be sent in a cash letter, a separate cash letter can be created from this tab. On-us checks can be combined with other checks in a cash letter only if they have not been processed.

  • Default Display: The screen defaults to displaying the current day’s unprocessed checks.
  • Filtering: Use the filter to find processed on-us cash letters and their processed date.
  • Image/Balancing: Even if the credit union does not send on-us checks in a cash letter, they will still appear here for image purposes and balancing, if needed.
    • Note: No balancing entries occur with this selection.
  • Exclude Today: If checked, only unprocessed checks scanned and posted prior to the current date will display.
  • Build & Send: Builds and sends the cash letter based on selected filters. It is recommended to balance all checks prior to building and sending.
  • My Teller: Filters only checks scanned by the current logged-in teller ID and branch.
  • My Branch: Filters only checks scanned by the current logged-in teller ID’s branch location.
  • Filter: Filters for additional items such as scan date, batch ID, check #, etc.
    • Note: If any of these filters are used, the cash letter will only include checks listed as a result of the filter.

Build and Send Cash Letter

  • Filter Impact: The My Teller, My Branch, and Filter buttons directly affect which checks are included in the cash letter. The cash letter will build based on the filters applied.
  • Example: To send a cash letter for the current logged-in teller ID’s branch location, click My Branch to list all unprocessed checks scanned for that branch ID. FLEX recommends verifying totals before clicking Build and Send.
  • Process:
    1. Click Build and Send.
    2. A summary pop-up will display, verifying the Batch ID, Total Checks, and Amount.
    3. If everything is correct, click Process.
    4. A confirmation will display, confirming the cash letter was sent successfully.

Cash Letter File Transmission

  • FLEX as Processor: If FLEX transmits files as the processor, they are immediately sent to FLEX upon creation. Client Services then sends the processed cash letters, and no further action is required from the credit union.
  • Third-Party Processor: If the credit union is not using FLEX to process cash letters, the file is placed on the IFS drive once built. It is then the credit union’s responsibility to upload the file(s) to their third-party processor.
    • Accessing IFS Drive: Click Home and type the credit union server’s IP Address in the search field.

Cash Letter Detail Report

A Cash Letter Detail report is generated every time a cash letter is built/sent. This report provides a detailed breakdown of each check included in the cash letter, featuring:

  • Routing Number
  • Account Number
  • On Us
  • Check Number
  • Check Amount
  • Teller ID
  • Branch ID
  • Scanned Date
  • Processed Date
  • Check ID
  • Cash Letter ID
  • Total Checks
  • Total Amount