Paper Check Clearing Services

The Federal Reserve Bank’s Paper Check Clearing Services allow financial institutions to deposit both paper forward and paper return check items. These services are especially beneficial in contingency situations when you or your vendor is unable to send an image cash letter file.

Forward Paper Check Clearing Services

Forward Paper Check Clearing Services provide financial institutions with products that enable you to deposit forward checks for collection in paper form. The Federal Reserve Banks offer item processing, settlement and adjustments services to help manage your check clearing needs. Forward items, including commercial checks, Treasury checks, and Postal Money Orders, can be deposited in a single cash letter.  Paper savings bonds must be deposited in a separate cash letter.

Return Paper Check Clearing Service

The Return Paper Check Clearing Service enables you to return checks that are unpaid for a variety of reasons, including insufficient funds or closed account. The Federal Reserve Banks send the return checks to the bank of first deposit (BOFD), or to a designated correspondent bank or processor which has been designated by the BOFD.

For more information about this service, visit the Paper Check Clearing Service setup page or contact your account executive.