What is check imaging and check processing in banking?

Check imaging is the process of converting a paper check into an electronic image and associated data file that can be transmitted, processed, and archived digitally — replacing the physical movement of paper checks through the clearing system.

When a customer deposits a check at an ATM, ITM, or branch, check imaging technology captures a high-resolution scan of both sides of the check. That image is paired with the MICR line data to create an x937 file — the standard electronic format used for check clearing. This file is transmitted to the institution's image processor, which routes it through the appropriate clearing network.

For financial institutions, the move to check imaging reduces the cost and risk associated with physical check handling. Lost checks, courier delays, and manual processing errors are eliminated. Images are stored digitally for regulatory retention periods, making retrieval fast and audit-friendly. CSG's Conveyance platform enables check imaging at ATMs and ITMs, extending this capability to self-service channels where customers increasingly prefer to transact.