OTTAWA, Ontario - The deadline for Canadian financial institutions and their customers to adopt the new Canadian Payments Association check specifications has been extended to June 30, 2007.
According to a news release, the extension will give businesses more time to make necessary changes to checks and software involved in check production.
The specifications are part of an industry-wide plan to move the Canadian check-clearing system to an image-based process - one that allows checks to be cleared electronically. (To read more about check imaging, click here.)
The CPA has published new specifications for Canadian checks. The new specifications are outlined in CPA Standard 006, Part A.
Key changes to the check specifications include:
- Adoption of a numeric date field in one of three specified formats
- A mandatory serial number in the MICR (magnetic ink characterization recognition) line encoded on the bottom of the check
- An increase in the minimum length of a check
- Standardized positions for key fields on the check, such as the date field and the amount in figures
- Disallowance of elements such as inverse printing, italics or slanted fonts that may hinder image-capture
- A provision to ensure that security features do not interfere with key data
- New printing requirements on the check's reverse side so that image-capture can be verified
- Revisions to technical specifications to ensure high-quality images can be captured
