Canadian CPA Business Cheque Specifications

Business Cheques in Canada are changing!

In January 2005, the Canadian Payments Association (CPA) announced new specifications for cheques. Effective January 1st, 2007 all cheques processed through the Canadian cheque clearing system will be subject to image capture.

As a result of the new cheque specifications, KEV Software Inc. has been updated to be compatible with the new CPA specifications for image ready cheques. To ensure your cheques conform to the new CPA standard, order image ready cheques from Davis + Henderson. They are guaranteed to comply.

For more information about the new CPA cheque specifications, please visit www.cdnpay.ca or call Davis + Henderson at 1-800-268-5779 source code 510.

Frequently Asked Questions

When will cheques have to change?

Capturing images of cheques as part of this new clearing process will be mandatory as of January 1st, 2007. 

In order to minimize the costs customers will incur in moving over to image ready cheques, the industry has established a transition period. This transition period ensures that cheque printers, software providers and businesses that produce their own cheques have time to make the necessary changes.

Starting in October 2005, customers will automatically receive the new ‘image ready’ cheques produced by our official cheque supplier Davis + Henderson.

How will cheques change?

The most noticeable changes include:

• adoption of the numeric date field format and printing of the date field indicators below.
• revised specifications that define and address matters such as cheque background colours, patterns, screening, and choice of ink colour. Although already producing image-friendly cheque backgrounds, Davis + Henderson has modified cheque designs to keep the 5/8" MICR encoded numbering area at the bottom of the cheque clear of any background design or colour. This ensures that the highest quality images are captured.

Other changes to cheques include:

• mandatory serial number in the MICR encoded numbering at the bottom of the cheque
• printing requirements on the reverse of the cheque (layout for endorsement and teller stamps on the back)
• standardized positions for key fields on the cheque such as the date field and amount in figures on the front
• disallowance of elements that may hinder image capture, including:
  • inverse printing
  • italics or slanted fonts in key fields
  • use of black carbon on reverse of cheques
  • borders printed in the 5/8" MICR encoded numbering area
  • security features that may interfere with areas of interest

What are the benefits of the new cheque standards?

The mandatory move to cheque imaging will provide a number of potential benefits to Canadian businesses, including:

• shorter hold periods for cheques on deposit
• earlier notification of returned cheques due to insufficient funds
• faster research and tracing as cheque images will be available online
• reduced cost and space requirements for physical storage of cancelled cheques

What do I need to do?

You will need to update your cheques to reflect the new image ready requirements that affect both the front and reverse sides of the cheque.

If you currently purchase cheques from Davis + Henderson, you are all set. Just be sure to re-order your cheques before December 31st 2006. Our cheque designs are recognized to have met or surpassed all new cheque standards. 

What are the next steps?

KEV Software Inc. has been updated to provide a new cheque output pattern (Image-Ready format) that matches the new image ready cheques.

If you have an existing supply of cheques, KEV Software Inc. also provides an optional output pattern (Earlier format) to match your existing cheque format. You will have the option of selecting this earlier format output pattern to deplete your current supply of cheques. The Earlier format option is meant to ensure you can use up your existing cheques prior to December 31, 2006. Effective January 1st, 2007, your financial institution will expect your cheques to comply with the new specifications.

Receive a 20% Discount on your first order by quoting source code 511

To order your Image Ready cheques, call Davis + Henderson 1-800-268-5779

KEV Software Inc.             Tel: (800) 362-1756           info@kevsoftware.com