Checks management

for what is a check docid 9rhrszzeru47z dn72z q management, cross river offers both check writing (withdrawals) and check deposits using mdc (mobile deposit capture is the process of submitting a check electronically using a smartphone) cross river works with lockbox service providers to process paper check deposits by default, all cross river partners have checks blocked (turned off) for their products this means a customer can order checks using a third party, and issue a check, but that check will automatically be rejected by cross river when presented by the federal reserve for payment you can request that cr enable checks per product or even per specific account if you want to offer checking to your customers on an individual basis, you can keep checks blocked for the product and have cr enable you to have each customer opt in individually, after which you perform a fraud review on the customer in cross river, checks have two different flows deposit in the deposit flow, you deposit a check into your cr account in cr this is referred to as an outbound forward item because the check needs to be sent ( out ) to the federal reserve and presented to the drawee bank (paying bank) for payment withdrawal in the withdrawal flow, you write a check on your cr account to pay someone in cr this is referred to as an inbound forward item because the federal reserve sends the check ( in ) to cr for payment and attempts to clear the check on your account your check clears when the transfer of funds succeeds in addition, whether deposited or used as a payment, a check might be returned for a number of reasons a returned check presented to cr by the federal reserve is considered an inbound return a check returned by cr is considered an outbound return availability policies availability policies define how quickly funds can be made available to the payee availability of funds from a deposited check is based on rules specifically mandated by the federal reserve under regulation cc (reg cc) reg cc defines how long a bank can hold funds based on various request and response codes docid\ wd9ku qkbonzvwmps2lb of deposits it's important to understand check processing and how regulation cc (12 cfr 229) laws effect availability of funds learn more about regulation cc cos defines the availability policy of any given deposit when the deposit is successfully received cos assigns the policy of the deposit based on that business day's deposits to that specific account you can use the check management docid\ nrrvehm 6ju3udzxmyzo to update the policy of a specific deposit stop payments if the payer has passed a check that the payer fi has not yet processed, they can put a stop payment on the check once a check has been processed by the payer fi, a stop payment cannot be made instead, a dispute must be filed by the payer if the payee deposits the check after the check has had a stop payment put on it, the payee fi generally charges the payee a penalty fee the payer bank will likely also charge for the stop payment service usually the check amount, check number and account number is included the stop payment instructions for further guidance, please refer to reg e 1005 10 preauthorized transfer (c) customer's right to stop payment section in the following link https //www consumerfinance gov/rules policy/regulations/1005/10/#a 1 positive pay cr's positive pay feature lets you or your customer make sure that only legitimate checks get deposited in their accounts either you or the account holder define which specific checks will be accepted this helps prevent check fraud you can think of positive pay as the opposite of stop pay in a sense you are providing an allowed list of authorized checks for deposit your or your customer provide the check number and amount for authorized checks cos takes this positive pay information and matches it against inbound forward items presented by the fed if a match is found the check is paid otherwise the check is rejected positive pay statuses appear in the status field in the positive pay responses, and include authorized the check has been authorized for positive pay paid an authorized check has been presented by the federal reserve and paid by the bank revoked the check's positive pay authorization has been revoked in regular check calls positive pay statuses appear in the positivepayresult field, and include an additional value, disabled , if positive pay is not configured for the check product your product must be configured by cr in order to use the positive pay feature once positive pay is enabled, any checks presented by the fed that are not authorized will automatically be rejected and returned to the depositing bank important the date time within the expiresat field of the response is ignored if a check matching that positive pay criteria is received after the date in the expiresat field it will be automatically rejected and returned to the depositing bank positive pay api endpoints include post /checks/v1/positive pay authorizations post checks/v1/positive pay authorizations/{id}/revoke