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The deposit slip that was never stamped by the bank
#4
Excellent work Tom... thanks...

Not only are we missing the Nat'l Bank of Chicago's processing marks but the clearinghouse remains the Federal Reserve Bank of Chicago.

WCD7 p193 - Fed Res Bank of ChicagoLESTER GOHR explains that the Fed Res processes 130,000 PMO daily.

From http://www.ctka.net/2015/JosephsRiflePart1.pdf




Appendix B Processing Postal Money Orders[/FONT]


1. Purchaser of the PMO designate a"Payee" and fills out the purchaser's information
2. Purchaser pays for the PMO Postalclerk tears PMO from stub and hands to Purchaser
3. Purchaser provides PMO to designatedPayee for deposit in exchange for goods/services
4. Payee endorses the back of the PMO anddeposits PMO in their Bank
5. The Bank will then PROCESS the PMO, addingwhatever marks, electronic or otherwise to the back of the PMO and record thepayment to Payee in their records


6. The Bank, now the new Payee, forwardsthe PMO to their affiliated Federal Reserve Bank for reimbursement of funds andprocessing USPS Fed Res Sys process


a. All money orders are forwarded throughthe Federal Reserve Banking System, to which commercial banks have access
i. For this standard: Money order means a U.S. Postal Money Order.
b. The postmaster general has the usualright of a drawee to examine money orders presented for payment by banksthrough the Federal Reserve System and to refuse payment of money orders, andhas a reasonable time after presentation to make each examination. Provisional credit is given to the FederalReserve Bank when it furnishes the money orders for payment by the postmastergeneral. Money orders are deemed paid only after examination is completed,subject to the postmaster general's right to make reclamation under 3.4.
c. The presenting bank and the endorser of a money orderpresented for payment are deemed to guarantee to the postmaster general thatall prior endorsements are genuine, whether an express guarantee to that effect is placedon the money order. When an endorsement is made by a person other than thepayee personally, the presenting bank and the endorser are deemed to guaranteeto the postmaster general, in addition to other warranties, that the person whoso endorsed had capacity and authority to endorse the money order for thepayee.
d. The postmaster general has the right to demand refundfrom the presenting bank of the amount of a paid money order if, after payment,the money order is found to be stolen, or to have a forged or unauthorized endorsement,or to contain any material defect or alteration not discovered on examination. Such right includes, but is notlimited to, the right to make reclamation of the amount by which a genuinemoney order with a proper and authorized endorsement has been raised. Suchright must be exercised within a reasonable time after the postmaster generaldiscovers that the money order is stolen, bears a forged or unauthorizedendorsement, or is otherwise defective. If refund is not made by the presentingbank within 60 days after demand, the postmaster general takes such actions asmay be necessary to protect the interests of the United States.


7. The Federal Reserve Bank will recordthe transaction and also include markings on the back of the PMO in accordanceto their batch processing rules.
a. Today, the Federal Reserve BankingSystem (FRBS) processes everything electronically yet fairly recently the paperproducts themselves were sent through Batch Processing machines. Section 7040 of Chapter 7000 of the"Procedures for Processing Postal Money Orders" tells us:
i. Section 7040 -Processing Fit MoneyOrders
7030.25 -Fit Money Order. A money order that can becompletely processed on high speed processing equipment.

· Batching and Listing Fit Money Orders. Paper money orders are MICR printed withthe routing code (including a routing number of 0000-0020 or 000000204) and theserial number with check digit. The routing number is also preprinted inthe upper right corner on the form, which is in the location and front asprescribed by the ABA.

FRBs will process FIT money orders asfollows:

· Receive money orders from banks and process on high speedequipment in the manner most compatible with the processing of other categoriesof cash items.
· Prepare batches of no more than 500 items.
· Insert (in numerical sequence) USPSbatch Locator Control Documents so that one is filed at the beginning of each batch ofmoney orders to be read.
· Create a paper-tape list of serialnumbers with optional check digit and amount of each money order read. The list will show the batch numberand a subtotal for each batch with an overall total of all money orders listedon the paper tape.
· The total amount of fit items should be entered on PSForm 1901, code 100.
· Money orders bearing unreadable MICR characters in theon-us field are not to be rejected and handled as mutilated. List thecharacters that can be read on the paper tape as a reconcilement aid.

ii. Section 7040 & 7050 (Manualprocess)
[FONT=Symbol]· 7050.20 -Insert a USPS Batch Locator Control Document atthe beginning of each batch of mutilated money orders.
· 7050.30 -Prepare an adding machine listing of each batchshowing the following information:
a. FRB name or code at the top.
b. The amount of each item.
c. The total amount of the batch.
d. FRB clearance date.
e. Batch number

iii. Section 7070 - Processing Old StyleMoney Orders
· "Punch card" money orders that have the ABArouting number 0000-0119 will be handled as mutilated items. They should beidentified as old style "punch card" money orders on the PS Form 1901for code 004
Once in a while you get shown the light
in the strangest of places if you look at it right.....
R. Hunter
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Messages In This Thread
The deposit slip that was never stamped by the bank - by David Josephs - 12-11-2015, 11:50 PM

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