While there certainly is no "Silver Bullet" to dealing with Duplicates, a multi-pronged / comprehensive approach will certainly help to minimize the occurrences and therefore minimize the risks. We have discussed, for years now, the importance of a multi-channel (Mobile, Merchant, Consumer Desktop, Corporate, Branch Teller, Branch Back-counter and in-clearings) and multi-payment type (both checks AND ACH items) approach to duplicate detection. This addresses duplicates within a single bank. See our
Risk Webinar for more details.
In the Dealing with Duplicates Session #1 Webinar, the issue of holder in due course was raised. Wouldn't a physical, restrictive endorsement significantly reduce the number of these claims? -And wouldn't the ability to detect, identify and intelligently read such an endorsement significantly reduce the number of duplicates overall?
Imagine if an FI had an intelligent system which could ID and read a restrictive endorsement... if the item being deposited has such, and it was restricted to that specific FI, then the deposit could be accepted. Now the item has a physical endorsement on it, and if presented to a check casher, should not be accepted. If presented to another FI, it should not be accepted. -And if no endorsement, or ensorsed to another FI, the item would be rejected.
Click Here to read the article we published on this topic over 2 years ago.
We'll post more ideas and solutions soon. Thanks for joining the discussion-