Check/Check 21 Services

Supporting industry adoption of UCD Check 21 file validation changes

September 2010

As check payment processing continues its evolution, the adoption of full image exchange is nearing its final mile. Throughout the transition, the Federal Reserve Banks have continually worked to support the payments industry and improve the efficiencies associated with the Check Clearing for the 21st Century Act (Check 21). Over the last five years, we have introduced several Check 21-enabled deposit options to increase efficiencies in check clearing. We have also worked closely with industry groups to address interoperability issues and support industry initiatives, including the Universal Companion Document (UCD).

Creating a single format for image exchange

The UCD was established to create a uniform industry approach for populating and validating check image files. Previously, each image provider had its own unique companion document to implement the standard for their own specific processing requirements and service offerings.

The goal of the UCD was to replace diverse file format requirements with one single format for image exchange. In doing so, interoperability between various image exchange networks will be improved, creating efficiencies in the payments system. Any unique functions a provider might offer are included in the UCD as exceptions. The UCD also enhances the flexibility and interoperability of the X9.100-187-2008 standard.

As announced on April 5, 2010 (PDF), the Federal Reserve Banks will implement expanded file validation changes in our production environment on September 27, 2010, aligning our processing with the requirements of the UCD and the X9.100-187-2008 image exchange standard.

Promoting interoperability

Since mid-2008, we have been working with customers and the Check 21 vendor community to support the anticipated validation changes. More recent activities include:

• New validation rules have been in place in the pre-production (test) environment since May 11, 2009. All files sent to this environment since that time have been tested against the new validation rules, with results displayed immediately on File Acknowledgement Reports. The test system remains available for customer use at any time.
• Parallel logging of all production files against the new validation rules has taken place for the last two years. Error reports have been shared with industry vendors and specific customers experiencing the greatest numbers of errors.

Since then, the number of errors in production files has decreased by 95% and critical rejects are less than .25% of all production files deposited. Going forward, we anticipate further reduction in error rates against the new validation rules.

Steps to help ensure you are prepared

The Federal Reserve Banks are committed to working with customers and vendors to help ensure the close collaboration necessary to implement Check 21-enabled products. If your organization has not tested or has not yet implemented required changes, we encourage you to take action immediately via the following steps:

1. Contact your vendor: Because these new rules may require changes to software or operating practices, please contact your software vendor or processor as soon as possible regarding the changes.
2. Conduct testing: If you have not already done so, you are encouraged to test files as soon as possible to ensure readiness for the September 2010 implementation. Files that do not meet the new Check 21 file validation rules will be rejected beginning September 27, 2010. Contact the Check 21 Customer Support Center at (877) FRB-CHCK or (877) 372-2457 to coordinate testing.
3. Check your current status: If you have not already received a report informing you of the status of your current production files when compared to the new edits, contact the Check 21 Customer Support Center at (877) FRB-CHKS or (877) 372-2457 and request a report.

Additional resources

If you have questions regarding this implementation, please contact the Check 21 Customer Support Center at (877) FRB-CHKS or (877) 372-2457. Additionally, you can refer to a comprehensive list of edits (PDF) to assist you in implementing the new standards.

Top of Page