??? We are a small bank that is just beginning to offer RDC to our customers.  We still deal in paper items.  How do other banks handle chargebacks on items that have been present through RDC?  Our current process is to send the chargedback item to the customer for them to decide whether or not to represent it.  But, if they process their deposits through RDC, the items that come back to us are going to be IRDs.  Can they represent an IRD through RDC?

Legally, there is no reason why you cannot represent an IRD through RDC.  However, you should have been asked by your service or software provider whether your bank wants to allow this type of an item.  There are concerns over fraud.  Your bank should also have a policy for acceptance or redeposited IRD at the branch.  Hope this helps.

While it is true that there is no legal reason you cannot represent IRDs through RDC, are there any process-driven requirements?  I have seen reference regarding the printing of IRDs as IRDs (picture in a picture of a picture of a check) where it is necessary to clip or crop the check image to make it appear in the new IRD as a full image.  If the IRD is captured and transmitted, making it an image item of an IRD, and the item remains an image, does the bank of first deposit have an obligation to perform the cropping?  Or is it acceptable to process the IRD without an image edit because it will remain as an image item when it is sent out in an image cash letter?