Imaging replaces documents-go figure

Today, Jun 2003 by Bolita, Dan

As IRD gets Check-21 push, imaging gets a boost

With a little help from TAWPI's Remittance Processing Check Council, and a big push from the industry leaders most affected, the "Check Truncation Act (or "Check-21") seems to be on the fast track for passage. As TODAY has reported, this legislation will give "Substitute Checks" or Image Replacement Documents (IRDs) the full legal force of a paper check.

In addition to the cost-savings for high-volume check handlers (like the credit card industry pushing the hardest,) the change will mean a reduction in "float" or "faster-time-to-money". The change is also significant at a broader level, as it concedes (at least in the legislature) that it's o.k. to let go of paper.

Imaging replaces documents. It's been a long time coming.

Like the sudden rise in the number of e-filers with the IRS, this is a milestone in the adoption of imaging. For more than 20 years, the document imaging industry has recognized the benefits of paperless transactions. Slowly, and with some bumps along the way, there's been an acceptance of digital documents that were once paper. Instead of paper clogging our in-boxes, e-mails are choking our servers; Rather than warehouses of file cabinets, we store our business records, personal documents, and even family photos in bits and bytes.

With the passage of legislation like the Check Truncation Act, imaging is becoming legitimate. As Roger W. Ferguson, Jr. Vice Chairman of the Board of Governors, Committee on Senate Banking, Housing and Urban Affairs testified:

"These legal changes are needed to facilitate the use of technologies that could improve efficiency and lead to substantial reductions in transportation and other processing costs. The proposed CTA makes such changes."

Legal changes facilitate the use of technologies. By giving Image Replacement Documents, (which incidentally, may never be printed at all,) the full force of a paper document, the legislators foster their use and acceptance by giving them legitimacy.

Still for most, the electronic equivalent-just isn't. While PalmPilots, tablet PCs, and "flip-books" offer the ability to read and write without paper, most of us prefer to hold paper in our hands. There's a sense of security that comes with the tangible that digital can't provide. (I've never had the words in a book disappear from the page before my eyes.)

Nonetheless, the volume of paper we receive is decreasing, e-mails, e-bills, e-statements and e-signatures are becoming commonplace. It's just as common to hear around the office, "send me a PDF," as opposed to, "mail me a copy." Imaging's acceptance, which has been much slower in coming than any of the prognosticators prognosticated, is one thing; imaging's legitimacy is quite another.

Organizations looking to reduce reliance on paper, can foster the use of electronic equivalents by giving them legitimacy. By accepting electronic applications for credit, or insurance, customers are encouraged to conduct business digitally. By accepting inter-office forms on-line, employees adopt e-forms as part of the currency of the office.

Congratulations to those who have worked to make CTA a success; you've given document imaging a welcome dose of legitimacy.

Dan Bolita

Editor