Check Payments

Accept payments from paper checks using Check21 or check conversion

Check payments enable you to accept traditional paper checks through digital channels. Payload supports two methods for check processing: Check21 for remote deposit with check images, and check conversion for recording in-person check payments. Both methods convert physical checks into electronic transactions while maintaining the audit trail and compliance requirements of traditional check processing.

US Only: Check payments are only supported for US-based payments in USD. For electronic bank account payments that don't involve physical checks, see Bank Account Payment Methods or Plaid.

Return Risk: Checks can be returned for insufficient funds, stopped payment, closed accounts, or other reasons. Unlike card payments, returns can occur weeks after initial deposit. Implement risk management strategies for high-value or suspicious checks.

Prerequisites

Before accepting check payments, understand how bank account payment methods work.

Learn about bank accounts

Understand how bank account payment methods work and how checks relate to bank processing.

Check Payment Methods

Payload supports two distinct check payment methods depending on your use case.

Check21 - Remote Deposit Capture

Check21 enables customers to submit check payments remotely by uploading images of the front and back of their check. The images are processed using OCR (Optical Character Recognition) to extract routing number, account number, check number, and amount. This is ideal for remote payments where the customer physically possesses the check but cannot deposit it in person.

Use cases:

Remote bill payment by mail
Online check submission portals
Mobile check deposit alternatives

Requirements:

Clear images of check front and back
Check must be payable to your business
Physical possession of the check
Images in JPG, PNG, or PDF format

Check Conversion - In-Person and Mail Payments

Check conversion allows you to record check payments received in-person at manned locations (retail, bill pay counters) or by mail by capturing the check details without uploading images. This is ideal when you receive physical checks at retail locations, lockbox locations, or through mail, and need to record the transaction in Payload for tracking and reconciliation purposes.

Use cases:

Bill pay counter transactions
Lockbox location payments
Mail-received check recording
Retail location check payments

Requirements:

Check received in-person at manned location or by U.S. mail
Check number for reference
Provide advance written notice to customers that checks will be converted to electronic transactions
Retain check images or copies for 2 years from settlement date
Destroy physical checks within 14 days of settlement
Provide opt-out procedures for customers who do not authorize conversion
Include check serial number in transaction records

Limitations:

Maximum payment amount: $25,000
Not available for certified checks

Method Selection: Use Check21 when customers submit check images remotely online. Use check conversion when you receive physical checks in-person at retail/bill pay locations or by mail and need to track them in Payload. For payments above $25,000 or certified checks, use Check21 instead.

When to Use Check Payments

Check payments are ideal for specific business scenarios where electronic payments are not yet universal and they are still accepting checks. Using Payload you can unifiy capture of all forms of payment.

Common use cases

Rent and Lease Payments: Property management accepting monthly rent
Earnest Money Deposit: Good-faith deposit after a home purchase agreement is signed
Insurance Premiums: Policy payments and claim disbursements
Utility Bills: Water, electric, gas, and other service payments
Professional Services: Legal, accounting, consulting invoices

Check21 Implementation

Accept Check21 remote deposit payments using Payment Form or direct API integration.

Check21 with Payment Form

Use Check21 with the Payment Form SDK to accept remote check deposits via image upload.

intent.py

form.html

form.js

import payload
 
pl = payload.Session("secret_key_3bW9...", api_version="v2")
 
# Create payment form intent for Check21 image upload
intent = pl.Intent.create(
    type="payment_form",
    payment_form={
        "payment_template": {
            "amount": 250.00,
            "source": "check",  # Enable check image upload fields
            "description": "Invoice #INV-2024-001",
        }
    },
)
 
print(f"Intent Token: {intent.token}")
print("Use this token to initialize Payload.js on the frontend")
print("Form will include check_front[file] and check_back[file] upload fields")

<!DOCTYPE html>
<html>
<head>
  <script src="https://payload.com/Payload.js"></script>
</head>
<body>
  <form id="check-payment-form">
    <h2>Submit Check Payment</h2>
 
    <!-- Check front image upload -->
    <label>
      Check Front Image
      <input type="file" pl-input name="check_front[file]" accept="image/*,.pdf" required />
    </label>
 
    <!-- Check back image upload -->
    <label>
      Check Back Image
      <input type="file" pl-input name="check_back[file]" accept="image/*,.pdf" required />
    </label>
 
    <button type="submit">Submit Payment</button>
  </form>
 
  <script src="form.js"></script>
</body>
</html>

// Fetch client token from your server
fetch('/payment-form-intent', { method: 'POST' })
  .then(res => res.json())
  .then(data => {
    // Initialize Payload with the client token
    Payload(data.token)
 
    // Initialize the payment form
    const form = new Payload.Form(document.getElementById('check-payment-form'))
 
    // Handle successful payment processing
    form.on('processed', (evt) => {
      console.log('Check payment processed:', evt.transaction_id)
      alert('Check payment submitted successfully!')
      window.location.href = '/success'
    })
 
    // Handle payment errors
    form.on('error', (evt) => {
      console.error('Check payment error:', evt.message)
      alert('Error processing check: ' + evt.message)
    })
  })

This example shows:

Backend:

Create payment form intent with type: 'payment_form'
Set payment_form.source: 'check' to enable check image upload fields
Specify expected payment amount
Return client token for form initialization

Frontend:

HTML form with two file inputs for check front and back images
pl-input attribute with name="check_front[file]" and name="check_back[file]"
Accept image formats: JPG, PNG, PDF
Initialize form with client token from backend
Handle processed event for successful check submission
Handle error event for processing failures

Check21 with API

Submit check payments directly via API by providing base64-encoded check images.

check21-api.py

import base64
 
import payload
 
pl = payload.Session('secret_key_3bW9...', api_version='v2')
 
 
# Helper function to convert image file to base64 data URI
def image_to_data_uri(file_path):
    with open(file_path, 'rb') as image_file:
        base64_image = base64.b64encode(image_file.read()).decode('utf-8')
        mime_type = 'image/png' if file_path.endswith('.png') else 'image/jpeg'
        return f"data:{mime_type};base64,{base64_image}"
 
 
# Convert check images to data URIs
check_front_uri = image_to_data_uri('./check_front.jpg')
check_back_uri = image_to_data_uri('./check_back.jpg')
 
# Submit Check21 payment via API
transaction = pl.Transaction.create(
    type='payment',
    source='check',
    amount=250.00,
    description='Invoice #INV-2024-001',
    receiver={'account_id': 'acct_processing123'},
    check_images={
        'front': {'file': {'data_uri': check_front_uri}},
        'back': {'file': {'data_uri': check_back_uri}},
    },
    attrs={'invoice_id': 'INV-2024-001', 'customer_ref': 'CUST-789'},
)
 
print(f"Transaction ID: {transaction.id}")
print(f"Status: {transaction.status.value}")
print(f"Check Number: {transaction.order_number}")
print("OCR processing will extract check details automatically")

This example shows API-based check processing:

Encode Images: Convert check images to base64 data URIs
Transaction Data: Set type: 'payment' and source: 'check'
Amount Validation: Optionally provide amount for OCR comparison
Receiver Account: Specify receiver.account_id for processing account receiving funds
Check Images: Include check images in check_images object with front and back properties as base64 data URIs

Image Format:

Data URI format
front_image = "data:image/jpeg;base64,/9j/4AAQSkZJRg..."
back_image = "data:image/png;base64,iVBORw0KGgoAAAANS..."

OCR Processing

When you submit check images, Payload's OCR engine extracts:

Routing Number: Bank routing/ABA number from MICR line
Account Number: Customer account number from MICR line
Check Number: Check sequence number from MICR line
Amount: Written and numeric amount (if provided, used for validation)
Date: Check date for verification
Payee: To whom the check is made out

Amount Validation: If you provide an amount in the transaction request, it's compared against the OCR-extracted amount. If they don't match within a reasonable tolerance, the transaction is flagged for review.

OCR Accuracy: OCR is highly accurate but not perfect. Review flagged transactions and implement manual review workflows for important payments. Monitor OCR confidence scores in transaction metadata.

Image Requirements

Check images must meet these requirements for successful OCR processing:

Format:

Supported: JPG, PNG, PDF
File size: Under 10MB per image
Resolution: Minimum 300 DPI recommended
Color or grayscale (color preferred)

Quality:

Clear, in-focus images
All four corners visible
No glare or shadows
Check must be flat (not folded)
Text must be readable

Content:

MICR line clearly visible on front
Signature visible on front
All endorsements visible on back
Date and amount legible

Mobile Capture: For mobile applications, provide guidance to customers on taking quality check photos. Consider implementing image quality validation before upload to reduce processing failures.

Check Conversion

Record check payments received in-person or by mail without uploading images.

check-conversion.py

import payload
 
pl = payload.Session('secret_key_3bW9...', api_version='v2')
 
# Record in-person check payment without uploading images
transaction = pl.Transaction.create(
    type='payment',
    source='check',
    amount=1500.00,
    description='Rent payment - March 2024',
    order_number='1234',  # Physical check number for tracking
    sender={
        'method': {
            'type': 'bank_account',
            'bank_account': {
                'routing_number': '110000000',
                'account_number': '1234567890',
                'account_type': 'checking',
            },
            'account_holder': 'John Smith',
        }
    },
    receiver={'account_id': 'acct_processing123'},
)
 
print(f"Transaction ID: {transaction.id}")
print(f"Status: {transaction.status}")
print(f"Check Number: {transaction.order_number}")
print("Physical check should be deposited at your bank separately")

Check conversion is simpler than Check21:

Set Source: Use source: 'check' to indicate check payment
Bank Account Details: Manually enter routing number and account number from the check in sender.method.bank_account
Account Holder: Include the account holder name from the check in sender.method.account_holder
Check Number: Set order_number to the physical check number for tracking
Amount: Provide the check amount (maximum $25,000)
No Images: Check images are not required or uploaded
Manual Processing: You handle physical check deposit separately

Workflow:

Provide advance written notice to customers that checks will be converted to electronic transactions
Receive physical check from customer in-person at manned location or by U.S. mail
Create check conversion transaction in Payload for tracking
Retain check image or copy for 2 years
Deposit physical check at your bank
Destroy physical check within 14 days of settlement
Reconcile when check clears

This approach tracks check payments in Payload alongside other payment types while you handle physical check deposit through normal banking channels. Use for checks received at point-of-sale, bill pay counters, lockbox locations, or by mail.

Check Conversion Limitations: Check conversion is limited to payments under $25,000 and does not support certified checks. For higher amounts or certified checks, use Check21 with image upload instead.

Compliance Requirements: Check conversion requires advance written notice to customers, retention of check copies for 2 years, destruction of physical checks within 14 days of settlement, and opt-out procedures for customers. Only use for checks received in-person at manned locations (retail, bill pay counters) or by U.S. mail. Cannot be used for online or phone payments.

Reconciliation: Link the order_number (check number) to your bank deposit records for easy reconciliation. Use the transaction ID to track payment status in your system.

Troubleshooting

Common issues and solutions when processing check payments.

Poor Image Quality

Symptoms: OCR extraction fails or produces incorrect data.

Solutions:

Provide guidance on taking quality photos
Require minimum resolution and file size
Reject blurry or partially visible checks
Offer re-upload option with improved guidance

Amount Mismatch

Symptoms: OCR-extracted amount differs from provided amount.

Solutions:

Review check image manually to verify correct amount
Check for unclear handwriting or printing
Verify numeric and written amounts match on check
Flag for manual review if discrepancy is significant
Update amount if OCR is clearly incorrect

Schema Reference

The following fields are available when creating check payment transactions. For complete API reference, see Transactions API Reference.

Check21 Transaction Configuration

type

enum[string]Immutable

The type of transaction being processed. This determines the direction and nature of funds movement, such as payment collection, refund issuance, credit disbursement, or account funding operations.

Values: payment, deposit, withdraw, refund, payout

source

enum[string]Immutable

The method by which this transaction was initiated or captured. This indicates whether the transaction was submitted via API, manually keyed, swiped through a card reader, processed via EMV chip, captured through NFC/contactless, initiated via digital wallets like Google Pay or Apple Pay, or processed as a check conversion.

Values: api, keyed, swipe, emv, emv_quickchip, nfc, googlepay, applepay, check

amount

number (double)

The monetary amount for this transaction in the currency of the processing account. This value is always positive and represents the total value being transferred, collected, or refunded. The amount is rounded to two decimal places for display.

receiver

object

Information about the receiver party in this transaction, including the account and payment method to which funds are being sent or credited. For payment transactions, this is the processing account receiving funds. For payout transactions, this is the account receiving funds.

accountAccount

object

The expanded account object for the receiver. When included, this provides the full details of the account receiving funds in this transaction.

Visibility: explicit

account_id ID of Account

stringImmutable

The unique identifier of the account receiving funds for this transaction. This is an optional field that references the account object that owns the receiver payment method. (ID prefix: acct)

Pattern: ^acct_[A-Za-z0-9]+$

methodPaymentMethod

object

The expanded payment method object used by the receiver. When included, this provides the full details of the payment method to which funds are being credited.

method_id ID of PaymentMethod

stringImmutable

The unique identifier of the payment method used by the receiver. This references the payment method object to which funds are being sent or credited for this transaction. If not provided the account default will be used. (ID prefix: pm)

Pattern: ^pm_[A-Za-z0-9]+$

check_images

object

Images of the physical check for check conversion transactions. Both front and back images are required and will be processed using OCR to extract payment details. The front image provides account information while the back image shows endorsements.

backCheckBack

object

The back image of the check being processed. This image is required for check deposit transactions and is used for verification and record-keeping purposes. It must show any endorsements on the back of the check.

Visibility: explicit

frontCheckFront

object

The front image of the check being processed. This image is used for OCR processing to extract account numbers, routing numbers, check numbers, and amounts. The image must be clear and readable for successful processing.

Visibility: explicit

order_number

string

Custom order or transaction number for this payment. Use this to link the payment to an order in your system or to provide a customer-facing transaction reference. Providing this value ensures duplicate protection is applied per order; .otherwise, duplicate protection applies across payments without an order reference. For check transactions this field contains the check number.

Max length: 64

description

string

A human-readable description of what this transaction is for. This text provides context about the purchase, service, or payment purpose and may be displayed to customers on receipts and in transaction histories.

Max length: 128

Next Steps

Enhance your check payment processing implementation

Handle Check Returns

Monitor and handle returned checks to manage insufficient funds, stopped payments, and closed accounts that can occur weeks after initial deposit.

Monitor Transaction Status

Track transaction status to monitor check clearing timelines and identify issues early in the processing cycle.

Automate with Webhooks

Subscribe to webhook notifications to receive real-time updates for check processing events, returns, and status changes.

Bank Account Payment Methods - Electronic bank account payments
Payment Form - Multi-method payment forms
Payment API - Process payments via API
Bank Rejects - Handling returned and rejected payments
Webhook Events - Automate payment workflows
Transactions API Reference - Complete transaction API reference

Two-step Processing Digital Wires

Check Payments

Prerequisites

Learn about bank accounts

Check Payment Methods

Check21 - Remote Deposit Capture

Check Conversion - In-Person and Mail Payments

When to Use Check Payments

Common use cases

Check21 Implementation

Check21 with Payment Form

Check21 with API

OCR Processing

Image Requirements

Check Conversion

Troubleshooting

Poor Image Quality

Amount Mismatch

Schema Reference

Check21 Transaction Configuration

Next Steps

Handle Check Returns

Monitor Transaction Status

Automate with Webhooks

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