Solutions Summit 2014

Payee Positive PayRoundtable

John Snyder

Ati Azemoun, A2iA

Chesapeake System Solutions, Inc. • Proprietary and Confidential

What Is The Problem?

• Payee fraud is the largest remaining opportunity for check fraudsters• Only the check payee name is altered• As long as there is no change to the MICR line as

verified by traditional Positive Pay, no exception will be flagged• Payee fraud works with any valid check, stolen and

altered or copied and modified• Can be as simple as adding an “OR” payee

Chesapeake System Solutions, Inc. • Proprietary and Confidential

What Is T-Recs Payee Positive Pay?

• T-Recs Payee Positive Pay processing closes the payee alteration fraud loophole• Also referred to as “Payee Name Verification”• Banks offer Payee Positive Pay as a valuable additional

service to their Positive Pay customers• Corporations can also perform Payee Positive Pay on

their own checks if they have access to the images• Creates a new check exception type – payee mismatch

Chesapeake System Solutions, Inc. • Proprietary and Confidential

How T-Recs Payee Positive Pay Works• Like traditional Positive Pay, the process requires daily

issue files to be imported• All check issue records must include a payee name

value, consistent with the printed check payee name• Payee verification compares the payor’s issue data

payee name value to the check image payee name• Works with any existing check stock – no special layout

is required• Processes handwritten as well as computer printed

checks

Chesapeake System Solutions, Inc. • Proprietary and Confidential

Bank Inclearings

and/orDDA System

Paid Check Data

T-RecsEnterpri

se

PNV

CheckData

Payee Compare Results

Pay/Return Exception

Report/Export

T-RecsPNV

ModuleCheck Image

Retrieval

Payee Name ReadAnd Compare

PNV

CheckImages

Bank Image Archive

1

2

3 4

6

789

10

5

Payee Name Verification Processing Flow

Chesapeake System Solutions, Inc. • Proprietary and Confidential

Implementation

• Check “reading” technology is used to find and interpret (using OCR and ICR) the payee name on the check image• All necessary software is provided by Chesapeake as

part of T-Recs• Chesapeake implements an interface to the existing

image archive to retrieve check images on demand, as needed, for matching• Identified payee mismatches are simply flagged as

another T-Recs exception type• All subsequent research and processing is the same as

any other exception

Chesapeake System Solutions, Inc. • Proprietary and Confidential

About A2iA - Artificial Intelligence and Image Analysis• A2iA is the leading recognition technology provider.

A2iA is a developer of specialized and highly intelligent software tools that help end users optimize their data capture, document processing and workflow automation capabilities.  A2iA’s products feature state-of-the-art and proprietary recognition technologies – including handwriting recognition, intelligent word and optical character recognition – that address our customers’ complex data extraction and document processing needs • Founded in 1991• A2iA Corp founded in 1999. • A2iA technology covers all aspects of image analysis, pre-processing

technologies, classification, data location and data extraction.

Chesapeake System Solutions, Inc. • Proprietary and Confidential

About A2iA CheckReader™A2iA CheckReader™ is an all inclusive Software tool kit applied by Chesapeake System Solutions, to address the complex work of Payee Name Recognition, as well as additional points of data collection from a payment document.

Payer Name &Address

Date

Courtesy Amount

PayeeName

LegalAmount

Signature DetectionMICR

MemoLine

Check Number

Chesapeake System Solutions, Inc. • Proprietary and Confidential

How to Optimize Performance for Positive Pay

Chesapeake System Solutions, can review your client’s payment documents, and printed matter, and where possible a set of guidelines can be applied to improve recognition results.

• Use 200 to 300 DPI when scanning the payment documents.• Introduce white space around the Payee Name if possible. • Avoid Background “Noise”, such a logo’s or stamps. • Print quality should be closer to 600 dpi.

A2iA recommends an Implementation Services for your clients prior to initiating a Payee Name Recognition Strategy. Please see Chesapeake System Solutions for details.

Chesapeake System Solutions, Inc. • Proprietary and Confidential

T-Recs Payee Positive Pay Demo

Q&A