National Check Professional (NCP) Certification Practice Test

According to ECCHO rules, when does the presentment of a check start?

1. When the check is signed by both parties

2. When the MICR line has been delivered

3. After the bank processes the check

4. Upon receipt of the check by the customer

The correct answer is: When the MICR line has been delivered

The correct understanding of when the presentment of a check starts, according to ECCHO (Electronic Check Clearing House Organization) rules, is that it begins when the Magnetic Ink Character Recognition (MICR) line has been delivered. The MICR line is critical for the electronic processing of checks as it contains essential information such as the bank routing number, account number, and check number. Presentment refers to the process of formally delivering the check to the bank for payment. The timing of this event is significant because it can affect aspects like the availability of funds and the clock for any potential errors or disputes. By defining the start of presentment at the delivery of the MICR line, the rules establish a clear operational point at which the check is recognized in the processing system and can be handled in accordance with the established guidelines for check clearing. This focus on the MICR line highlights the importance of electronic processing in modern banking, where checks are often processed digitally, and the information in that line is what triggers many of the processes that follow.