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Banking on Imaging
How to Design Image-Friendly Documents for Financial Institutions
BY KATHERINE L. HOUSE

FORM, Nov. 1994

Document design of financial forms has always required a little extra work. There are detailed ANSI standards specifying everything from the type of paper required to the position of key fields. Plus, the MICR line must be printed just so, then tested to ensure adherence to standards. Security concerns translate into a myriad of features to combat counterfeiters. Now there is a new issue: how to design image-friendly documents for image-enabled equipment in banks.

"Image-friendly" refers primarily to the ability of some design elements to drop out when a document is digitized. This makes viewing of documents on screen easier and makes courtesy amount read-CAR technology-more accurate. CAR, which is employed in some bank imaging systems, attempts to read the courtesy amount field on checks and multiple fields on internal documents, thus automating the proof and encode process in a bank. Documents also can be carefully designed to reduce the required storage space, which becomes more critical the larger the system size.

The need for document redesign varies by imaging application. When banks use imaging systems solely for statement rendering, checks are the only forms that need to incorporate image-friendly design techniques. Since most personal checks already have been redesigned for this purpose, banks should then advise businesses on making their checks image-compatible. In addition, demand deposit accounts (DDA) statements likely will need to be redesigned slightly. Image statements are printed on a non-impact printer, and the first page usually contains the bank logo and a statement summary on 3-hole punched paper. Subsequent pages containing check images often are printed on blank, white, 3-hole punched paper.

Financial institutions using imaging for proof of deposit, including CAR, need to redesign all documents that pass through reader/sorters, including:

  • Account Close Out Tickets
  • ATM Deposit Tickets
  • ATM Envelopes
  • Cash In/Out Debit and Credit Tickets
  • Commercial Loan Settlements
  • Counter Deposit Tickets
  • Credit Adjustment Advices
  • Credit Slips for Safe Deposit Box Rental
  • DDA Transaction Tickets
  • General Ledger Debits/Credits
  • Insufficient Funds Slips
  • IRA Transaction Tickets
  • Loan Payment Coupons
  • Loan Transaction Tickets
  • Receipts
  • Savings Deposit Tickets
  • Savings Withdrawal Tickets
  • Vault Cash In/Cash Out Slips

Ask banking customers installing imaging for statement rendering if they plan to use imaging one day for proof and encode. If so, plan document redesign accordingly. If your financial institution client uses a service bureau for document processing that has converted to imaging, find out the requirements of that company's equipment.

When redesigning financial forms, be aware that equipment specifications vary. However, it's possible to redesign forms before your client has selected a vendor by becoming familiar with the idiosyncrasies of each system and designing for the minimum requirement. After equipment is installed, minor revisions may be necessary, however.

The following design requirements apply to documents processed by image-enabled reader/sorters.

Drop-Out Designs
Items that should not be digitized successfully must be designed to "drop out" and thus often are referred to as being printed in drop-out or non-read inks. Although some in the printing industry believe a drop-out ink is a special type of ink, virtually any color ink produced by any vendor can be screened at a certain level to cause a "drop out" or "low contrast" effect. The ability of printed matter to drop out is measured by the document's print contrast signal. PCS is the difference between print reflectance and background reflectance. The higher the PCS, the more likely the printed data will be captured by the imaging equipment. Therefore, items to be read by CAR and those that need to be viewed on screen should have a significantly higher PCS than those that should drop out.

To ensure inks and screens provide a good contrast regardless of ink color:

  • Have your forms manufacturer or your customer's equipment vendor recommend a suitable PCS, then test documents. Although ANSI specifies a PCS of .3 or less for the convenience amount field on checks, the recommended PCS for drop-out fields on other documents varies by equipment vendor. ANSI committee members are exploring the possibility of recommending a PCS in the group's specifications covering the entire front and back of checks. Generally, a PCS of .6 or more ensures data will appear in an image. For drop-out items, use a screen value of 120 to 150 lines per inch and a screen density of 5 to 30 percent. When screens do not drop out, they use additional storage space and slow retrieval time.

    Of course, there's a delicate balance between ink too dark to drop out and ink too light to be read easily. An equipment vendor recalls that one financial institution's documents had to be reprinted to the surprise and frustration of the printer. Although the necessary fields dropped out when imaged, the documents were too light to be read by the bank's customers. Be careful not to go overboard on drop-out printing. Key elements, such as titles and field labels, often need to be printed in a scannable ink so they will be visible when the document is viewed later.

Among the items that should drop out are:

  • Handprint boxes around amount fields used to constrain handwriting. This improves accuracy because the machine cannot confuse the box with data in the box, such as a digit.
  • Other boxes used to constrain handwriting, including check boxes often used on financial documents for internal auditing, if the data in those boxes will be read by CAR.
  • Most or all of the scenic design or pattern in the background of checks. This prevents the background from obscuring data that must be read by the machine or viewed on a monitor. Backgrounds that drop out also use less storage space. However, it can be tricky to achieve a low PCS on some financial documents if security features requiring darker images, such as void pantographs, are specified.
  • The endorsement field on the reverse of checks.
  • Shading in fields that will be read by machine.
  • Logos and addresses on internal documents unless they are critical for future viewing. This will save storage space.
  • Color bars used for document identification across the top of documents if all documents are printed on white paper. This will save storage space. However, the document name should have a PCS of .6 or higher so that it will be visible after imaging.

Other Key Tips

  • Use 24# white MICR bond, the same paper specified by ANSI for all checks, or 20# long grain paper. If your client wants to use other basis weights, check with the equipment vendor. Paper should be highly reflective and opaque and should not contain extraneous particles. Although white paper is recommended, other colors, especially light colors and pastels, can be selected if the specified reflectance and PCS can be achieved.
  • If carbon or carbonless paper is necessary, check with the equipment vendor for recommendations on paper types. Test it in the bank's equipment.
  • Remember that institutions using imaging still require checks to have a MICR line. The characters must be printed with magnetic ink according to ANSI standards.
  • Work with the bank and equipment supplier to include document I.D. numbers in the MICR line of internal documents so the imaging equipment can discern the type of document being read.
  • Standardize the position of key fields on documents to improve accuracy. For example, if the bank uses 50 different general ledger tickets with different account numbers, standardize the position of the amount field on all tickets. Likewise, try to standardize the position of the amount field across all types of documents. This may increase the read rate by simplifying document use for the end user.
  • Differentiate documents even if all documents will be printed on white paper. A screened color bar across the top of a document is one technique often used. Or, use different fonts.
  • Employ a box design printed in drop-out ink to constrain the handwriting of those filling out documents. Individual character boxes for each digit in the amount field on deposit tickets, for example, force the writer to space and size characters properly. System vendors specify the required height/ width ratio and the box-to-box spacing. Generally, the required widths are approximately .160 to .220 inches, and height ranges from .2 to .25 inches. Handprint boxes should not be employed on items to be printed by teller machines, although the entire field should be surrounded by a box. If the box fits tightly around the data, a drop-out ink is recommended.
  • Leave adequate space surrounding fields to be read by CAR. This varies slightly by vendor, but 1/4-inch should be sufficient.
  • Place the signature line on checks far enough away from the courtesy amount field so large signatures do not interfere with machine readability.
  • Use the proper symbol to separate dollars and cents. Again, this varies by equipment vendor. At least one vendor requires a decimal point printed in a non drop-out ink, while another vendor does not require a separator. You may also need to use a separator to differentiate the thousands field and the hundreds field.
  • Use the proper field identification symbols. By doing so, you increase machine performance by helping the equipment locate fields. The dollar sign used to denote the amount field, and the asterisk, sometimes used for secondary fields, are two of the most common symbols, but symbols and specifications vary by vendor and may not be required. Field identification symbols should have a PCS greater than .6 so they will not drop out. ANSI standard X9.7 governs the size and placement of the dollar sign on checks, although the dollar sign is not necessary for computer-generated checks if the computer prints the sign.
  • Leave enough space in fields completed by machine to account for misalignment. This is especially critical for items run through teller machines and any business checks that will be completed by machine.
  • Provide an adequate margin around each form, generally 1/4-inch. This helps the equipment identify when a document has been sent along the transport and also aids in deskewing.
  • Remove superfluous information to reduce storage space. Cash in/cash out tickets, for example, need not contain the names and addresses of all branches. However, you may want to print the branch name and even teller number on some documents. That way, if a teller machine ribbon is worn out and printing too lightly for accurate reads, the problem can be traced.
  • Avoid halftones because they take up significant storage space. Areas with heavy ink coverage, such as thick dark borders, take up slightly more space.
  • Adjust document size accordingly. Check with the equipment vendor on minimum and maximum size. By reducing the size of some documents slightly, you will save storage space. An added advantage: By standardizing document size, the client will be eligible for volume printing discounts.

In addition, forms professionals should follow the specifications outlined in the following ANSI standards: X9.18 Paper Specifications for Checks, X9.27 Print Specifications for MICR, X9.13 Specifications for Placement and Location of MICR Printing, X9.7 Specifications for Bank Check Background and Convenience Amount Field, and X3.45 Character Set for Hand Printing. An appendix to standard X9.7 includes information about PCS testing and recommended values.

For more information, talk to your financial forms manufacturer. Also check the specifications of the user's equipment and always test documents. Major equipment vendors, including AT&T, IBM and Unisys, publish booklets for customers specifying design requirements of items processed by their equipment.

Katherine L. House is managing editor of FORM magazine.

Thanks to AT&T Global Information Solutions; Ed Borowski, manager of courtesy amount reader development for Unisys Corporation, Plymouth, Mich.; George Ellis, CFC, president of Lawrence Printing Company Inc., Greenwood, Miss.; Donald Harman, an independent consultant in Charlotte, N.C., who works with IBM; Stan Klarenbeek, vice president of sales and marketing of General Financial Supply, a manufacturer in Nevada, Iowa; and Bob Smith, manager of financial markets for Standard Register, Dayton, Ohio.

Using Image-Friendly Documents
In addition to the changes made to documents for processing by imaging systems, bank employees and their customers may need to alter their habits. Forms professionals should recommend:
Teller machines use black ribbons that are replaced regularly to ensure good print quality.
Teller machines be set to print an "enhanced" image, not single dot characters.
If the font on teller machines can be adjusted, select one that is large and clear, such as a sans serif typestyle.
Tellers be careful when placing marks near areas to be imaged. Tellers should not circle items or make stray marks that may affect accuracy of CAR or legibility of an image when viewed on screen.
Teller machines be adjusted so all information is printed in the same relative position from the bottom right of the document. Personnel should be trained to insert documents properly to ensure the amount is printed in the proper location.
Clients advise customers on the proper way to complete checks that will be imaged. This may include recommending against using red inks if the equipment in use cannot read red ink.

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