Cheque clearance is a highly distributed and automated process, and it is currently difficult for the paying bank to systematically detect conversion errors or fraud. It is largely up to the account holder to detect mistakes reflected in their statement, and many account holders do not have the time or the inclination to verify their statements. An incorrect cheque value can result from a transcription error during conversion, a failure of intelligent character recognition (ICR) during conversion, or from fraudulent alteration of the cheque details by the payee.
It would be desirable to improve cheque clearance processes so as to minimize conversion errors and fraud.
USPTO Backgrounds
USPTO Backgrounds