The Check Clearance Process from a Business Perspective

Business checks are written everyday at almostcorrect amount. All checks received in the office at
every place of business. At age 18, anyone with thethe end of the day are totaled together and
adequate amount of money can open a checkingdeposited into the bank account.
account of his or her own.When the person responsible goes to the bank and
One aspect of checking account functions that manymakes the deposit for the business, he or she hands
account owners are not familiar with the processinga large number of checks to the bank teller. The
of their checks after they have been written. Whenteller will then verify the amount of the deposit to
shopping, the customer many times thinks to his orthe total amount of the checks.
herself whether he or she should pay cash, charge it,After the deposit has been verified and all numbers
or pay for the purchase with a check. He or she mayare correct, the teller will then run the checks
ponder this question in their mind all the way to thethrough the proof machine to be verified again. The
check out counter.proof machine also encodes the amount on the
When the customer makes the decision to pay forbottom right hand corner of the check. When all of
the merchandise with a check, a long process isthe work has been ran through the proof machine it
started. This process begins when the check isis then sorted by an automatic sorter that sorts the
handed over to the cashier. Once all information haschecks by their routing numbers.
been properly placed on the check the cashier thenAfter the checks have been sorted they are sent to
will normally ask for two things, a home phonethe bank that they have been drawn on. Once the
number and a driver's license number.checks arrive at the banks they are drawn on, they
Once all of the necessary information has beenare then sorted by their account numbers. As these
placed on the check by both the cashier and thechecks are being sorted they are posted to the
customer the check is scanned in the automaticaccount automatically. The checks then, in account
check reader. This check reader recognizes thenumber order are placed in a safe filing area so they
customers account number, A.B.A. number (or routingwill not be lost until the bank statements are sent to
number), as well as the check number.the account owners.
The computer system can then recognize theThe check or a copy of the check is then sent to
specific account and check to make sure that therethe account owner in the mail with his or her
are no returned checks on that account. Once thestatement. In the case that a copy of the check is
check is approved, it is then printed or endorsed onsent to the owner the check is kept in a safe place
the back with all proper information for deposits,until it can be properly destroyed.
including the amount of the purchase, cash backThis is only one example of the way a check is
received (if applicable), store location number, date,cleared through a certain business. Although, the basic
time, cashier number, and the customer's accountconcept of check clearing is the same, each individual
number.company may go through its own processing
The cashier then stores the check in a locked boxprocedure before depositing the check to the bank.
until it is time for them to go home. All checks areMost banks handle their business checks in
then added together to make sure none are missingapproximately the same manner.
and to make sure the cashier put all checks in for the