Effective date for Check 21 Services file validation changes revised to February 16, 2024
In October, we previously communicated plans to implement enhanced Check 21 Services file validation procedures at the start of the processing cycle for November 20, 2023.
We have since received customer feedback around the previously communicated timeline and customer challenges with existing year-end commitments. In direct response to this feedback, we will be adjusting the previously shared timeline. The updated validation will now be effective for the processing cycle of February 20, 2024; immediately after the 12:00 p.m. ET deposit deadline on Friday, February 16, 2024.
The change centers on the truncation indicator, which:
- Is located in the addenda records in image cash letter (ICL) deposits
- Identifies the converting institution
- Is a critical component of creating a Check 21 compliant substitute check, or check image replacement document (IRD)
What is changing in February 2024?
- Currently
- If the value in the truncation indicator field is missing, multiple, invalid or the item has an error processing code (EPC) field value of ‘4’ and a truncation indicator of ‘Y’, then an error for that item is reported as a warning on your Deposit Notification (DNO), but the items are still passed on to the receiving financial institution.
- On the processing date of February 20, 2024
- If the value in the truncation indicator field is missing, multiple, invalid or the item has an EPC field value of ‘4’ and a truncation indicator of ‘Y’, then the item will fail the validations and the check will be adjusted back to the depositing financial institution. The item will continue to be reported on the DNO but will not be presented to the Paying Bank for forward items and will not be presented to the Bank of First Deposit for return items.
Action required from your institution
Your institution has recently deposited items that would fail the modified truncation indicator validation. It is essential that you contact your relationship manager as soon as possible to assess what operational changes may be necessary before February 16, 2024.
Service and Support
Our customer test environment is open 24/7 and has been configured with the updated validation. You are welcome to utilize this as a resource to test changes or analyze specific scenarios. Any errors or failures during testing will be identified on the DNO, which is typically sent within ten minutes of processing.
If you have any questions regarding this change, please contact your relationship manager or the Support Center at (833) 377-7827.
Please note, the prior communication may have been sent to your processor on your behalf or there may have been no activity for your institution over the analysis period, but we are extending this communication to other impacted depositing financial institutions.