Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
Account-centric enterprise content management solutions allow users to access account holder information based on their account numbers.
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
API is short for “application programming interface.” Technology companies like Alogent rely on APIs to connect multiple software applications, thereby enabling a two-way exchange of information to support users’ needs.
Audit and exam prep is a process that financial institutions go through in order to adequately prepare for upcoming audits and exams.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

Courtesy Amount Recognition (CAR) of Checks

Courtesy Amount Recognition (CAR) is a process used by financial institutions, such as banks and credit unions, to facilitate the automated processing of checks by recognizing the numerical value of the check's amount, regardless of any discrepancies between the written (legal) amount and the numerical (courtesy) amount. CAR primarily refers to the system where the bank or credit union attempts to process the check based on the numerical value (the digits), even if the written and numerical amounts differ.

Key Aspects of CAR:

Recognition of the Numerical Amount

CAR focuses on the numerical value printed on a check, which is typically in the form of digits. Unlike Legal Amount Recognition (LAR), which prioritizes the written amount (the legal amount), CAR gives initial precedence to the numerical value. This helps in quickly processing the check and initiating payment based on the numerical figure.

Handling Discrepancies Between Written and Numerical Amounts

While LAR relies on the written words when discrepancies occur between the written and numerical amounts, CAR generally allows for the numerical value to take precedence in automated processing. For example, if a check presents a difference between the amount written in words and the digits, the bank or credit union’s system will attempt to process the check according to the digits first, without waiting for manual intervention or verification.

Automation and Speed 

One of the key advantages of CAR is that it allows for faster check processing through automation. Since the numerical amount is the one typically used in automated systems, CAR helps reduce the need for manual review and increases the speed of check clearance, as it prioritizes the easier-to-read digits over the potentially more complex written words.

Fraud Prevention and Verification

Although CAR speeds up the process, financial institutions remain vigilant about fraud prevention. If discrepancies are noticed between the written and numerical amounts, banks and credit unions may flag the check for review or reject it for further investigation. Additionally, systems often cross-check against databases to ensure that the payee and check details align with recognized standards.

Regulatory and Legal Considerations

Unlike LAR, which is governed by the Uniform Commercial Code (UCC) where the written amount is the legal amount when discrepancies occur, CAR systems operate within the broader framework of banking regulations, but may not necessarily align with all UCC provisions in terms of dispute resolution. However, CAR remains consistent with regulatory requirements in that it strives to enhance accuracy, efficiency, and fraud prevention.

Customer Experience

CAR improves customer experience by streamlining check processing. Customers whose checks are properly formatted (with matching written and numerical amounts) benefit from faster processing. For checks with discrepancies, the bank may contact the issuer to resolve the issue, but the overall process remains more efficient compared to manual checks of both amounts.

Error Handling in CAR

Even though CAR prioritizes the numerical value, checks with significant discrepancies between the written and numerical amounts will typically trigger a review process. This ensures that, despite the automatic processing, the check is not paid out incorrectly.

Technology in CAR Systems

Banks and credit unions rely on optical character recognition (OCR) and other advanced technologies to read and interpret the numerical amount on checks automatically. These systems help speed up the check-clearing process and ensure the proper amount is recognized without the need for manual data entry, thus reducing human error.

Learn more about check deposit software here.

Explore more resources

Related articles

Tuesday 17 February 2026

Modernizing Teller Capture: The Hidden Costs of Legacy Deposit Systems for Banks and Credit Unions

As account holder expectations change and operational pressures grow, outdated technology at the teller line can introduce inefficiencies, delays, and risks. For banks and credit…

Read the Blog

Thursday 12 February 2026

How to Electronically Share Credit & Loan Files with Examiners

The Commercial Loans (Section 206) booklet, part of the Office of the Comptroller of the Currency's (OCC) Comptroller's Handbook, sets forth examiner procedures for evaluating…

Read the Blog

Monday 9 February 2026

[Playbook] Smarter, Faster, More Secure Mobile Deposit Capture

Here’s the Situation: Today’s depositors expect flexibility, and mobile deposit remains a baseline feature for digital-first consumer and business banking. Financial institutions are turning to…

Read the Blog

Wednesday 4 February 2026

4 Important Exceptions to Track for Commercial Lending

Keeping exceptions to a minimum is an important priority for mitigating risk, ensuring compliance, and encouraging efficient operations. But, what exactly is an exception? At…

Read the Blog

Tuesday 3 February 2026

Make Tax Season a Little Less Painful: Smarter Content Management for Banks and Credit Unions

Few industries are more document intensive than banking. Loan agreements, collateral records, credit reports, disclosures, notices, certificates of good standing, deeds of trust, land surveys…

Read the Blog

Monday 26 January 2026

Why Banks and Credit Unions Must Modernize Legacy Systems to Reduce Technical Debt and Strengthen Security

Banks and credit unions have long been pillars of stability in their communities, but behind the scenes, many are carrying the weight of aging technology…

Read the Blog

Thursday 22 January 2026

Streamlining Consumer Lending with a Comprehensive View of the Borrower

Borrowers expect quick access to financing without excessive documentation requests, but keeping everything organized can be challenging for lenders—especially when relationship information is spread across…

Read the Blog

Tuesday 13 January 2026

Avoiding Exam Issues with a “Stronger” Approach to Exception Management

Managing exceptions can feel like busywork with minimal impact on a financial institution’s overall success. But, in reality, effective exception management is essential for mitigating…

Read the Blog