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Tips for Recognizing a Fraudulent CheckWhat is a Fractional?A fractional is used to determine the financial institution of the share draft if the MICR line is ever damaged or torn off:
A fractional can be used as a fraud detection tool. The information in the fractional should always match the information in the MICR line. The check shown below is a fraud. The state code “56” should be used, instead of “25,” which is a city code. (See State Codes listed below.)
Elements of a CheckFederal Reserve Perforation – Look for at least one perforated side on the check Bank address – The address of the bank should correspond to the appropriate Federal Reserve District. For example, if you receive a check drawn in California, the routing/transit number generally should depict the Twelfth Federal Reserve District (12). Note, however, that some banks with offices in several Federal Reserve Districts are using a routing/transit number for one Federal Reserve District and a bank address in a different Federal Reserve District. District and Office - The first two digits of field of field 5, the routing/transit number in the MICR line, indicates the Federal Reserve District. Federal Reserve Districts
The third digit indicates the particular District Office. As an example, in the Sixth District, the numbers and offices are: District Offices (Sixth District)
State Codes
How do you write the fractional number on a check?For example, if the “XX” section is 88, it represents Texas. Note down the “YYYY” section of the fractional routing number. It needs to correspond to the second set of digits of the number located at the bottom left-hand corner of the check or digits five through eight of the bank's routing number.
What is a bank fractional?What is Fractional Banking? Fractional Banking is a banking system that requires banks to hold only a portion of the money deposited with them as reserves. The banks use customer deposits to make new loans and award interest on the deposits made by their customers.
What are the small numbers under the check number?At the bottom of your check are 3 groups of numbers: your routing number, account number and check number. The bank's routing number is the first set of numbers in the lower left corner of your check.
What is the number under the check number?What are the numbers on a check? At the bottom of a check, you will see three groups of numbers. The first group is your routing number, the second is your account number and the third is your check number.
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