Taking Control of Payment Duplication
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(1)Overview: Being duped is never a good thing. This is especially true for financial institutions when the age-old backroom problem, payment duplication, is magnified because of new electronic clearing protocols. In the past, duplicate postings to demand-deposit accounts (DDAs) were a manageable processing anomaly because financial institutions became proficient at minimizing these exceptions in the paper check-based environment. However, times have changed. Payment systems must now deal with automated clearinghouse and lockbox items, as well as image exchanges and IRDs (image replacement documents), following enactment of the Check Clearing for the 21st Century Act (Check 21). There is a significant cost associated with handling duplicates, including the cost to process the duplicate as well as the cost associated with lost revenue and customer dissatisfaction. In addition, there is a revenue potential associated with charging banks that introduce duplicates into the payment system. "Taking Control of Payment Duplication," a white paper from CONIX Systems, explores the growing issue of duplicate payment postings.
