Effective October 28, 2004, paying banks must accept IRD presentments as legal check presentments. Yet, there is much controversy surrounding the use of IRDs. The Federal Reserve clearly believes using IRDs will reduce expenses and check float without forcing banks to invest in new hardware and software. But banks that have already invested in image technology see the IRD as detrimental to achieving full electronic check presentment (ECP). These banks cite several other issues concerning the use of IRDs, ranging from exposure to added fraud losses to concerns about print quality. In TowerGroups new research report titled, Check 21: Is IRD Really a Four-Letter Word, TowerGroup, discusses the differing viewpoints of the Federal Reserve System and financial services institutions, identifies the pros and cons of IRDs, and projects the future use of image replacement documents.
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