When a check is endorsed, it signifies an agreement between two entities. The value of the check in question will change hands. It might seem obvious, but endorsements are a vital procedure in banking. ANSI X9.100-111-2018: Financial Services – Check Endorsements is a standard that provides guidelines that assist in keeping this process simple and effective.
ANSI X9.100-111-2018 provides a very specific role in the process of check endorsements. The standard gives guidelines that relate to location for all physical check endorsements and electronic endorsement overlays applied to check images. ANSI X9.100-111-2018 also denotes guidelines on the background of the back of the check. It gives information on the design elements on the back of the check as well as the placement and data content of the endorsements.
It is important to note that ANSI X9.100-111-2018 does not cover the format of electronic endorsement records. It also does not delve into the creation of substitute checks or endorsements on the front of the physical check or its image. As covered in an earlier blog post, ANSI X9.100-140-2018 covers substitute checks in relation to the Check 21 Act (Check Clearing for the 21st Century).
The beginnings of ANSI X9.100-111-2018 can be traced back to 1985, when ANS X9.3-1981 was first published. Together, members from the American Bankers Association, the Bank Administration Institute, the Federal Reserve, and commercial bankers, made up a Joint Item Task Force that recommended this action.
ANSI X9.100-111-2018 offers a set of normative references shown below:
- Skokie, IL; American Bankers Association Key to Routing Numbers
- ANSI X9.100-110, Document Imaging Compatibility
- ANSI X9.100-10, Paper for MICR Documents
- ANSI X9.100-20, Print and Test Specifications for Magnetic Ink Printing (MICR)
- ANSI X9.100-30, Optical Background Specifications for MICR Documents
- ANSI X9.100-140, Image Replacement Document – IRD
- ANSI X9.100-160-1, Magnetic Ink Printing (MICR), Part 1: Placement and Location
- ANSI X9.100-160-2, Magnetic Ink Printing (MICR), Part 2: EPC Field Use
- ANSI X9.100-170, Check Fraud Deterrent Icon
- ANSI X9.100-187, Electronic Exchange of Check and Image Data
- Federal Reserve Regulation CC, Section 229.35, Indorsements, and Section 229.38 – Liability.
ANSI X9.100-111-2018: Financial Services – Check Endorsements is available on the ANSI Webstore.