The Cheque Is No Longer In The Mail: Risks And Developments Relating To Cheque Imaging

The Canadian Payments Association (the "CPA") recently issued a 4 part article series on the security implications of image-based cheque clearing, in particular relating to duplicate items.   Image-based cheque clearing is possible in Canada as a result of the CPA's Image Rule Project, a four-phase initiative that aimed to provide Canadian financial institutions with the option to clear cheques electronically, by way of image-based cheque clearing.  More recently, Canadian financial institutions have begun offering Remote Deposit Capture, which allows customers to deposit a cheque by taking a picture of the cheque on their phone and submitting the picture image instead of the physical cheque.