Remote Electronic Check Processing

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Remote Electronic Check Processing

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CAR/LAR Courtesy Amount/Legal Amount Recognition ... Archdiocese - donations. Property management. Credit unions. Banks. Thrifts or savings banks ... – PowerPoint PPT presentation

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Title: Remote Electronic Check Processing


1
  • Remote Electronic Check Processing

2
Solutions website
http//www.square-9.com/solutions
  • What it is?
  • How it works?
  • Key selling points
  • Barriers to sale
  • Competition
  • Types of applications
  • Collateral

3
What is Check21?
  • The Check 21 Act, which is also known as the
    Check Clearing for the 21st Century Act, went
    into effect in October 2004.
  • It requires financial institutions to accept and
    be able to process Image Replacement Documents
    (IRDs). The law is intended to encourage the use
    of imaging technology to process and clear checks
  • Best-of-breed, end-to-end, client/server solution
    for electronic check processing
  • Check21 is a solution for ANY customer looking to
    process checks electronically

4
Key terms
  • ICL Image Cash Letter
  • Front and back of check along with data file
    compressed into a file. A single ICL can contain
    multiple checks
  • ECL Electronic Cash letter
  • No check images only data
  • X9.37
  • X9.37 is an electronic file specification that
    was developed to support the Check 21 Act and is
    the industry standard for electronic check
    exchange
  • MICR - Magnetic Ink Character Recognition
  • Magnetic ink based number at bottom of check.
    Typically contains account and routing number
  • CAR/LAR Courtesy Amount/Legal Amount
    Recognition
  • Reads the handwritten or digital amount from check

5
Common questions
  • What types of checks does Check21 support?
  • All checks, except foreign checks, including the
    following
  • Consumer checks
  • Business checks
  • Corporate checks
  • Government warrants
  • U.S. Treasury checks
  • Money orders
  • Travelers checks
  • Has Check21 been certified by the Federal Reserve
    Bank (FRB) to be a Check 21-compliant system?
  • No. The FRB does not certify software or software
    vendors.
  • Instead, financial institutions that want to
    establish an image exchange agreement with the
    FRB must go through a certification process
  • Does Check21 support direct exchange with the
    Federal Reserve?
  • Yes. Check21 from Square 9 can output a X9.37
    file that meets the Federal Reserve requirements
    and inherently supports FedForward transmission
  • Does your solution support returns?
  • Yes, our Check21 solution supports FedReturn as
    well as it can import x9.37 files

6
Check21 Target Market
  • Non-profit associations like Cancer, Heart and
    Lung large events with lots of checks
  • Archdiocese - donations
  • Property management
  • Credit unions
  • Banks
  • Thrifts or savings banks
  • Factoring companies
  • Utilities
  • Municipalities tax assessor
  • Brokerage
  • Insurance
  • Financial Services
  • Retail
  • Manufacturing
  • Hospitals and healthcare facilities
  • 3rd party healthcare billing
  • Any company that receives a large amount of checks

7
Key points - banks
  • The Fed as of January 1, 2008 has raised fees for
    processing of paper checks and has decreased fees
    for electronic deposits
  • Reduce manual balancing
  • Eliminate transportation and courier expense
  • Accept customer deposits electronically
  • Expand customer base nationwide
  • Offer Check21 solution for sale to merchant
    accounts
  • Eliminate MICR encoding and proof machines
  • Reduce sorter maintenance expense
  • Reduce insurance expense
  • Check21 solution integrated with document
    management Fortis and SmartSearch

8
Key points - merchant
  • Reduce float, get interest on monies quicker -
    99 funds availability for cash letters
  • Streamline and control cash
  • Integrate processing into cash management and AP
    software
  • Reduce trips to bank
  • Reduce need to manual balance
  • Eliminate MICR encoding and proof machines
  • Reduce sorter maintenance expense
  • Reduce insurance expense
  • Check21 solution integrated with document
    management Fortis and SmartSearch

9
Bank check21 vs square 9 check21
  • Some banks do offer Check21 services
  • Typically web based very simple check scan
    capabilities
  • No AP system integration in real time
  • Storage of check images and data
  • Check data extraction is limited
  • Square 9 Check21 can extract
  • MICR
  • CAR/LAR
  • Data mining name, address, telephone, SSN,
    drivers license, etc
  • Remittance processing
  • Remittance constrained handwriting, bar codes
  • Check stubs extracting invoice numbers

10
Check21 Cost justification
  • Reduction of HARD Costs
  • Reduce FLOAT
  • Savings on items paid one day sooner (Source
    Global Concepts)
  • 5 136 savings for 1 million check
  • Transportation of paper items from branches to
    check clearinghouse (Superior Iron Range
    Community FCU - 2,000 per month)
  • Eliminate manual check imagers and media costs
  • Eliminate mailing of paper checks back to
    customer
  • Reduction of SOFT Costs
  • Streamline check processing procedures
  • Employee per hour savings - no longer need to
    physically encode checks
  • Retain image of check in archive disaster
    recovery, audit, etc.
  • Control cash
  • Three way matching of check with other stored
    content
  • Line of business or core processing integration
    of check metadata

11
Automated processing of check
CAR/LAR Retrieve the handwritten amount
  • Data Mining Option
  • -Intelligently retrieve data from top left of
    check
  • Name
  • Address
  • Phone
  • Drivers license
  • SSN
  • MICR
  • Check scanner is designed to read the magnetic
    ink based MICR and parse the
  • Account number
  • Routing number

12
Remittance processing
  • Support for remittance processing
  • Invoice stubs
  • Loans
  • Bank deposits
  • Utility bills
  • Property tax bills

13
Easy-to-use Interface
  • Automated corrections and balancing
  • Red caution flags for invalid data reads
  • Viewer window for front/back of check
  • Data entry validation

14
Check21 Supports
  • Built-in CAR/LAR from A2iA
  • Built-in x9.37 ICL and ECL (image/electronic cash
    letter) module
  • Built-in FTPS upload transmission to BOFD
  • MICR parsing
  • Balance and corrections
  • Research
  • Data mining
  • Remittance processing
  • Image enablement of core bank processing systems
  • Electronic endorsements
  • Support for FedForward, FedReceipt and FedReturn

15
Check Scanners Supported
  • Deposit Express Check Scanners Supported
    Canono CR-25o CR-55o CR-180 Digital Check
    (Kodak)o Tellerscan (TS) 100o Tellerscan (TS)
    220Eo Tellerscan (TS) 215 RDM EC7000
    CheXpress 30
  • C21 Express Check Scanners Supported Canono
    CR-25o CR-55o CR-180 Digital Check (Kodak)o
    Tellerscan (TS) 100o Tellerscan (TS) 220Eo
    Tellerscan (TS) 215 BankTec NCR Panini
    BUIC

16
Check21 configurations
  • Merchant Capture ONLY
  • Deposit Express
  • Simple scan, endorse, balance, correct and send
    to bank
  • Merchant, Branch or Teller Capture
  • C21 Express
  • Robust solution includes all of the above plus
  • Reporting
  • Multi-ICL merge
  • Support for FedForward, FedReceipt and FedReturn
  • Add-on Options
  • Remittance
  • Data mining

17
  • For more information
  • Brent Wesler
  • VP of Business Development
  • Office 1 203-789-8791 ext.119
  • Mobile 1 203-752-6858
  • bwesler_at_square-9.com
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