Image Cash Letter (ICL)

Image Cash letter (ICL)

Image Cash Letter (commonly referred to as ‘ICL’) is a negotiable replacement for a physical paper check that was formally recognized under the Check Clearing Act For The 21st Century, or Check21 act. The Check21 Act was put in place to lessen the strain of paper flowing between banks and the federal reserve and ultimately speed up processing times from when checks were written to when the money is available in the payees account.

An ICL image can be a consumer initiated transaction where a modified check image is generated with the account holders information. In some instances, an electronic signature may be added onto the ICL image prior to sending to the Receiving Depository Financial Institution (RDFI). Under the Check21 act, this digital representation of the check whether signed or not signed is a negotiable version and should be honored by most financial institutions.

Companies that receive a large amount of paper checks benefit greatly from ICL as they are able to convert paper transactions into digital transactions thereby reducing the bulk transport of said items, and the headache that goes along with processing large amounts of returns from multiple financial institutions.

The industry standard format for Image Cash Letter is X9 format and it’s that format that all banks who offer ICL origination services use. With Axio Payment Solutions we are able to help turn your paper checks into an ICL file as well as submit the file on your behalf to the proper RDFI to speed up your cash flow process. Additionally, centralized returns allow us to batch update your transaction in the Axxess Gateway so you can properly reconcile your account and refer failed transactions to the correct departments for additional follow-up.

ICL is one of the most simple methods of electronic payments and not only reduces the cost to process transactions on a volume-level but also reduces the time and costly mistakes associated with scanning and deposit checks or time-intensive bank runs.

Stop wasting your lunch hour processing checks. Let Axio Payment Solutions be your intermediary and work out a solution so you can get back to doing what you do best…Running your business! To speak to an account specialist, please call our Electronic Products Unit at 877-272-7953 and someone will be there to answer any questions you may have!