Banking systems advance with each decade and operations become more efficient both cost-wise and time-wise. However, much of a bank’s infrastructure behind physical check deposits still depends on outdated scanning hardware, image capture, validation, mechanical document handling, data extraction and basic downstream processing.
A traditional deposit at an ATM undergoes quite the process just to be scanned. For the user, completing a transaction requires the following:
Whew! That’s a lot of steps just to process one check. With Veryfi, much of that physical process nonsense can be bypassed entirely.
What exactly needs to be read to confirm a check? The MICR line? The amount and account information? Bank information? Sender/receiver? Memo? Dates? Fractional Routing? Currency? Well, that’s it; if you subtract the physical labour of the ATM machine, these things can be easily handled by Veryfi’s API.
Veryfi’s Bank Check OCR API is specifically made to turn check images into structured banking data within seconds while providing in-depth fraud analysis. The resulting check data can then continue downstream in formats including JSON, X9, and ACH.
Rethinking ATM Check Deposits With a QR Code
Now let’s say your bank decides to integrate Veryfi’s Bank Check API.
Here’s what the check deposit could look like for your customers: after the customer authenticates and selects Deposit Check, the ATM displays a QR code directly on its screen.
The customer scans the QR code using their phone and captures the front and back of the check. Since the transaction has already been initiated through the ATM, the QR code can be tied directly to that specific customer and deposit session, creating a smooth workflow rather than a completely separate check deposit process.
But there’s another way to make the process even simpler.
Instead of scanning a QR code, a camera built into the ATM or kiosk could capture the customer’s check as they present the front and back of it.
No need for the ATM to physically pull the check through its internal scanning mechanism. No need for a separate phone capture. Just the customer, the ATM camera, and Veryfi processing the check digitally.
From Check Image to Banking Data
Veryfi’s Bank Check OCR API is purpose-built specifically for check processing. Once a check image enters the API, Veryfi can extract information including:
- Routing number
- Account number
- Check number
- Raw MICR data
- Amount
- Written amount
- Payer information
- Receiver information
- Date
- Memo
- Fractional routing information
- Signature and endorsement information
Veryfi’s Check API then transforms that information into structured data that can continue through the bank’s existing systems.
Take a look:
Check Capture → Data Extraction → Validation → Fraud Analysis → X9/ACH Output → Bank Processing
The bank’s control is mainly in the authentication, funds availability, clearing policies, account management and the final approval. Whereas Veryfi takes care of the check processing layer.
X9 and ACH Without Another Manual Step
Extracting the data is only part of check processing.
Now comes the formatting of that same data. Since we’re dealing with checks, financial institutions need that check data in formats compatible with existing banking infrastructure.
And guess what? Veryfi’s Bank Check API can do just that! It can return structured JSON, X9, and ACH data, while its Remote Deposit Capture solution supports the creation of X9.37 files used for electronic check exchange and clearing workflows.
With Veryfi, you get a complete package; there is no need to build additional systems just to understand and restructure the check information. The API can handle that on its own and turn that check into usable banking data right after capture.
Capture Quality Starts Before the API
Now because this Veryfi API layer deals with images, blur, missing edges, poor lighting, or other issues could result in a failed capture and require the user to retake the image however many times necessary.
But what if I told you there’s a way around this? Ensuring that the submitted check isn’t rejected after waiting a certain amount of time for it to get processed.
Veryfi Lens (Camera SDK) is designed to improve the document before it’s even submitted.
This SDK can automatically check the document boundaries, skew, image quality, lighting, and whether it meets the ANSI/X9 image quality requirements prior to moving deeper inside the workflow. Veryfi has a 99.9% MICR read accuracy across multiple check formats such as government, personal, business, and international checks.
With this, whether the ATM utilizes its camera or the customer scans the QR code, they will receive clear guidance on how to capture the check in the most optimal quality to be processed.
Check Fraud Is Still Costing Banks Billions
With incredible speed and accuracy, Veryfi’s Banking API seems like the ideal solution, but what about fraud?
Check fraud has gradually gone beyond what was shown in shows like White Collar. With the rise of AI, manipulated checks are becoming even harder to detect. Specialized AI models now have to be trained just to combat this issue. So much for the saying, “Fight fire with fire.”
According to the American Bankers Association, U.S. check fraud losses were projected to exceed $24 billion in 2024. Check-fraud reports also increased from more than 350,000 in 2021 to over 680,000 in 2022, showing just how rapidly the problem has grown.
Just as Veryfi’s API has a data extraction layer, it also has a fraud-detection layer that allows the check’s extracted data to be carefully examined and returned within the same workflow.
For bank checks, Veryfi can return warnings/signals related to:
- AI-generated checks
- Digitally tampered checks
- Duplicate submissions
- Screenshots
- LCD/screen photographs
- High-velocity submissions
- Critical velocity
- Aspect-ratio mismatches
- Fraudulent PDFs
- Incomplete or suspicious document captures and many more
For banks, this provides peace of mind that data can be extracted efficiently while an additional layer carefully analyzes the check for fraudulent or manipulated information.
Going Beyond the QR Code
The ATM QR concept is just scratching the surface of what’s possible with Veryfi.
The larger picture is Veryfi’s Banking API operating as the document-processing and fraud-detection layer across various banking environments.
Veryfi’s technical banking architecture takes care of the following:
Document Capture Layer – mobile and browser-based check capture
Processing Engine – AI-powered extraction
Fraud Detection Suite – AI-powered fraud detection
Integration Layer – REST APIs and SDKs connecting with banking systems
Business Rules Engine – customizable validation and workflow rules
This allows the same underlying technology to extend beyond one specific customer experience.
Veryfi Inside the ATM
Similar to the QR-code concept, Veryfi can also be integrated deeper into the ATM’s existing workflow.
The ATM continues to capture the check image as usual, while Veryfi handles the data extraction, validation, and fraud analysis behind the scenes. This allows the existing ATM experience to remain familiar to the customer while upgrading the software-processing layer behind it.
Veryfi at the Teller Window
A similar implementation can be used with bank tellers. Bank tellers already use dedicated scanners to capture physical checks, meaning Veryfi does not need to replace the physical scanner itself.
The scanner acts as the image-capturing layer of the check, whereas the heavier work of data extraction, fraud detection, validation, and other processing will be handled by Veryfi. This allows the existing teller hardware to remain the same while Veryfi operates as the software-processing layer behind it.
Veryfi Inside Banking Kiosks
Now this is the most futuristic method.
A self-service kiosk equipped with a camera allows customers to authenticate themselves, select a deposit account, and simply present the check to the camera. The Veryfi API layer then guides them toward the ideal capture position (when they’re holding the check), similar to how capture guidance works in Veryfi Lens.
Once the image is captured all that’s left is for Veryfi to process the check within seconds and if everything checks out, the transaction is swiftly completed for the customer.
Veryfi Inside Existing Banking Applications
As mentioned before, U.S. check fraud losses were projected to exceed $24 billion in 2024. When it comes to manipulated checks, whether it’s a physical manipulation or a digital one, Veryfi specializes in identifying these anomalies and warning the system prior to the check advancing further down in the check-processing workflow.
Veryfi’s Bank Check Toolkit includes mobile check capture, data extraction, validation logic, anomaly detection, and accuracy reporting designed specifically for applications geared towards check processing and deposits.
This is also a strong solution for financial institutions building a new banking experience or wishing to modernize an existing one. It provides intelligence across multiple layers of the transaction process, meaning the complete check-processing technology does not have to be developed entirely in-house.
One API, Multiple Banking Environments
Instead of relying on separate layers for image extraction, validation, fraud detection, and data processing, Veryfi combines these capabilities into one workflow.
Veryfi isn’t simply replacing one scanner with another one; it creates a check-processing layer that can operate wherever a bank needs to capture a check:
- ATM
- QR-based deposit
- Banking kiosk
- Teller workstation
- Mobile banking application
- Browser-based deposit experience
- Back-office workflow
The Bottom Line
That is where Veryfi fits.
For QR-based capture, Veryfi can guide the customer through capturing the check before processing the resulting image and data. For kiosks or banking applications, it can provide an additional intelligence layer without requiring the financial institution to build the complete check-processing technology stack internally.
The main goal of the bank is to operate securely and efficiently, and when different layers operate independently, they can create additional complexity within the workflow which opens up the doors to threats. With Veryfi, these threats are neutralized and all of the different layers can operate within one specialized processing layer.
Veryfi’s Bank Check OCR API combines document capture, MICR and financial-data extraction, validation, fraud signals, and banking-ready outputs including X9 and ACH. For banks looking to modernize their check-processing workflows, Veryfi provides the intelligence layer to make that transition possible.
