Definition of proofand transit

collection and reconcilement of checks, drafts, and notes. The oldest form of proof is teller proof, or the balancing of a teller's cash position at the close of a business day. In check processing, proof and transit have been combined into a single operation involving high-speed check sorting equipment, a reader/sorter machine that separates checks into different groups, such as checks payable by other banks (on-others checks) and checks payable by the same bank (on-us checks). Checks destined for other banks, known as transit items, are encoded with the dollar amount in the MICR line and shipped off to a clearing house to be presented to the paying bank. Proof and transit is a highly automated business, and has made the check a very competitive, low-priced payment mechanism.