For Immediate Release
PRESS RELEASE
SVPCO Image Payments Network Expands Product Offerings
New Clearing Options Enable Increased Image Exchange Volumes
New York – Oct. 16, 2007 – Financial institutions connected to the SVPCO Image Payments Network have begun forming new correspondent clearing relationships that are spurring the growth of image exchange among regional institutions and further reducing check processing costs.
In the past few months, Wachovia Corporation, Wells Fargo & Company and other banks have begun sending one another volumes of check images, which are being routed for clearing to local banks not connected to the Image Payments Network. This allows financial institutions to more efficiently route these transactions electronically, replacing time-consuming and more expensive ground and air transportation. The receiving institution then provides a service to deliver them, via image or substitute check. Benefits accrue to all participants in the delivery channel.
“This new use of the Image Payments Network represents an excellent opportunity to further leverage our investment in image exchange and put even more volume through the system,” said Luke Huys, Senior Vice President in Operation and Technology of Wachovia. “As a result, Wachovia will further reduce check processing costs while reaching more endpoints. We look forward to working with other institutions like this through the Image Payments Network.”
The SVPCO Image Payments Network was originally designed with the flexibility to carry many different types of data to enable participants to optimize their network connections. In addition to new applications, such as transmit volume exchange and correspondent processing, the network supports transmittal messaging, the forward presentment of image cash letters and administrative returns and transportation to the Federal Reserve and Endpoint Exchange.
Mitch Christensen, Executive Vice President, Payments Strategies, Wells Fargo, said: “Wells Fargo will realize a double benefit by partnering with institutions on the Image Payments Network to clear regional checks. We will be able to offer a new, fee generating service, while further cutting the costs of check processing. By adapting the network for correspondent clearing purposes, Wells Fargo will process more image exchange volume.”
Another new use of the network is that participants are providing capabilities for their downstream correspondents to send cash letters using the SVPCO Gateway DTA connection. This is an easy way for correspondent banks to better serve their customer’s image needs by replacing ground transportation with electronic delivery.
Susan Long, Senior Vice President of The Clearing House, responsible for SVPCO, said: “I am pleased to see participants in the network finding new innovative ways to obtain value. This is becoming more important as the cost of clearing paper checks is rising rapidly.”
Participants in the SVPCO Image Payments Network are Bank of America, Bank of Stockton, The Bank of New York, BB&T, Comerica Bank, Fifth Third Bank, First Citizens Bank, HSBC Bank, Huntington National Bank, JPMorgan Chase Bank, KeyBank, LaSalle Bank, M&I Bank, M&T Bank, Members United Corporate Federal Credit Union, National City Bank, PNC Bank, Sterling National Bank, Union Bank of California, U.S. Bank, Wachovia Bank, and Wells Fargo Bank. Through its relationship with the Federal Reserve and Endpoint Exchange, the Image Payments Network can reach more than 10,000 endpoints and help financial institutions of all sizes take advantage of image exchange.
The SVPCO Image Payments Network offers financial institutions a variety of connectivity options. The SVPCO Distributed Traffic Agent (DTA) enables financial institutions with larger volumes to transmit check images directly to each other. The SVPCO Gateway DTA is a cost-effective solution for peer-to-peer exchange designed for institutions with smaller volumes or who are interested in gradually ramping up their image processing capabilities. The Image Payments Network can also be accessed through an institution’s correspondent banking relationship or through a third-party processor. In September, more than 255 million items and $427 billion were exchanged through the network.
For more information about the SVPCO Image Payments Network, contact Susan Goold, Vice President, Products and Services, SVPCO-Electronic Clearing Services, 201.319.5554, susan.goold@svpco.com.
About The Clearing House Payments Company
The Clearing House Payments Company L.L.C. (www.theclearinghouse.org) is a private-sector, global payment systems infrastructure that clears and settles 40 million payments for more than $2.1 trillion per day. The Clearing House serves more than 1,400 U.S. financial institutions and hundreds of international participants with payment services that span the entire spectrum of paper, paper-to-electronic and electronic payments. Services include local and regional check exchange and settlement services; ACH association and operations; large-value "wire" payments; and image exchange. Financial institutions of all sizes benefit from payment systems that meet the highest standards for reliability, security and service. The Clearing House Payments Company is owned by the following banks or their U.S. banking affiliates: ABN AMRO Bank N.V., Bank of America, The Bank of New York, The Bank of Tokyo-Mitsubishi UFJ, BB&T, City National Bank, Citibank, Citizens Bank, Comerica Bank, Deutsche Bank, Fifth Third Bank, First-Citizens Bank, HSBC Bank, JPMorgan Chase Bank, KeyBank, M&T Bank, National City Bank, PNC Bank, UBS, U.S. Bank, Wachovia Bank, and Wells Fargo Bank.
SVPCO Media Contacts
Chip Savidge, Office: 336.769.5321, Mobile: 917.576.0957, chip.savidge@theclearinghouse.org
Greg Berardi, Office: 415.239.7826, Mobile: 415.672.2377, greg@bluemarlinpartners.com
