The Checks API enables you to do execute most common tasks associated with checks in a banking context such as depositing checks and viewing check details and images. COS works with every type of check such as money orders, on-us, certified and Federal Reserve Bank checks. See here for a full list of check types.
Checks are considered as a type of payment in COS. There are two directions - inbound and outbound, as well as two payment types - forward and return. This means:
- A check that is drawn from an external bank that is deposited into a COS account is considered an outbound forward item because the check needs to be sent to the Federal Reserve and presented to the drawee bank (paying bank) for payment.
- A check that is drawn from a COS account and deposited into an account at an external bank is considered an inbound forward item because the Federal Reserve is presenting it to CRB for payment.
- A returned check that is being presented by the Federal Reserve is considered an inbound return. This occurs when a check that is drawn from an external bank is deposited into a COS account and then returned by that external bank.
- When the Fed presents CRB with a check that is drawn from a COS account for payment, and CRB is unable to pay that check, then CRB will return that check with the appropriate return reason code. This is considered an outbound return.
Updated 12 months ago
Learn more about the Checks API