Xerox 6180N Generic MICR Fundamentals Guide  - Page 113

7. Problem solving MICR problem investigations take different forms, depending on the nature of the problem, the availability of actual problem documents, and the willingness of the parties involved. Timely problem identification and resolution is especially important for products covered by the MICR Quality Guarantee. When problem solving is required New accounts If the customer is opening a new account or validating a new check issuance system, banks frequently request sample checks for quality inspection and to verify MICR performance in a test environment, before negotiable checks are circulated. Reject rate investigations are less complicated at this stage because the rejected documents are not negotiable and the parties are already involved in document testing. When rejected characters can be identified and studied, the reason for their rejection is frequently obvious. Existing applications When an existing check application has an elevated reject rate, the analysis is more difficult for the following reasons: • Issued checks are negotiable and contain real customer data; banks and customers may be unwilling to part with them. • Banks typically track rejection rates by account, resulting in a one to two month lag between printing and reports of problems. • Banks that receive checks with correction strips are reporting rejections from another bank, earlier in the check processing system. Therefore, rejected characters cannot be identified. Generic MICR Fundamentals Guide 7-1