Saturday, February 20, 2016

Check Image Clearing System (CICS) of Philippines Clearing House Corporation

Good news for Philippine banking customers,  payments for check deposits will soon be
faster and more secure.

 It will also take a shorter time to find out if the check is funded  or not thanks to the New Check Image Clearing System (CICS),

Starting middle of 2016 the banking industry through the Philippine Clearing House Corporation  (PCHC) will implement the Check Image Clearing System or CICS to speed up the processing of the check.

How?  with CICS clearing and payment of the check will be based on the electronic or digital copy of the check.

The new system will allow banking customers to enjoy faster crediting  of funds to the customer's account and quicker feedback if check is funded or not regardless  of the location of the paying Bank Branch. All this at no additional cost to the customer.

The CICS will eliminate delays caused by heavy traffic, airport delays and other natural disasters like typhoons and earthquakes.

The check clearing cycle is shorter.

The new system also enables banks to extend cutoff time for receiving check deposits.

To implement CICS the design and physical appearance of checks should be good enough to produce clear images.

All the necessary information including handwritten or machine printed details should be readable when captured as images.

Banks will issue new check books which have standard design and specification.

 All checks shall continue to be accepted until they are phased out or until the cut-off  date for non-acceptance is set.

The Philippine Clearing House Corporation will announce the deadline.
New security features are embedded on the check to mitigate fraud and possible  duplication.

A statement will be printed on the check to authorize its electronic presentation

Customers will be advice to write checks with a dark-colored Ink preferably blue or black.

A very important change in preparation for CICS is the policy on erasures and alteration

Effective January 4, 2016 the following will render the check unacceptable for clearing

   1. Any form of erasure or alteration on the face of the check even if it has been countersigned,
   2.  Incomplete information on the check, necessary information should include the
               a. date
               b. payee
               c. amount in figures
               d. amount in words 
               e. signature/signatures

 These will help protect customers and Banks as a significant number of frauds on check payments are done through unauthorized erasures or alteration.

In this digital age where most corporate and personal banking transaction are moving towards electronic processing the check image clearing system is a move in the right direction and  will
ensure efficiency, security and faster credit of funds benefiting the customers .

The Check Image Clearing System was made possible by the joint initiative of the banking industry through the Philippine Clearing House Corporation with the support of the Bangko Sentral ng Pilipinas.

 For more information about check image clearing system you may visit

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