NORTH CANTON, Ohio - Diebold, Incorporated (NYSE: DBD) is partnering with Alogent Corporation to expand intelligent check handling at the ATM to include the capture, validation, management and transfer of check images and related transaction information.

According to a news release, the companies have worked together to couple Alogent's Sierra Xpedite deposit automation software with Diebold's ATM terminal software. The resulting product is called ImageWay.

With approximately 42 billion checks written in the United States each year, financial institutions are embracing check imaging as a way to reduce processing costs and the fraud risks associated with physically presenting and returning checks, according to the release. Check 21, which was signed into law on Oct. 28, is expected to accelerate this migration.

The capture, recognition and automated validation of check images at the ATM enables real-time proof of deposit. It also significantly reduces the potential for deposit fraud through schemes such as empty envelopes, incorrect amounts and fraudulent checks.

Financial institutions can extend the hours for funds availability for ATM deposits, since transactions can be processed throughout the day based on the real-time capture image and data, without dependence on the collection and transport of paper items. This solution also minimizes the need for labor intensive envelope opening, item extraction operations and ATM balancing solutions.

"Extending deposit automation from the teller to the branch back counter and now to the ATM is a logical extension of our straight through check processing focus," said Brian Geisel, founder and CEO of Alogent Corporation, in the release. "Through our relationship with Diebold, financial institutions will gain tremendous value from an integrated solution that ensures the most versatile point-of-presentment compatibility available today."

The Diebold ImageWay ATM Agent uses Alogent's Sierra Xpedite software to help manage the transmission of check images and related transaction data from the ATM to the Diebold ImageWay server. The server application utilizes Sierra Xchange, a unified payments gateway that makes image and related information available to other external applications in an open format.

By incorporating Alogent's deposit automation technology, Diebold's ImageWay solution is also capable of image-assisted workflows including automated image based processes and balancing to ensure transaction quality and integrity. This eliminates the need for envelope-based ATM balancing systems.

Diebold has offered the Intelligent Depository Module (IDM) check reader on ATMs for more than 10 years. The company holds multiple patents for conducting check imaging on ATMs, including placing images of the check on the ATM screen, conducting image analysis of check data and placing check images on receipts.

According to the release, IDM provides the largest installed base of check readers at ATMs; IDM functionality will be utilized for check handling at the ATM.

Diebold ImageWay, Xpedited by Alogent, will be demonstrated in the Diebold booth (#2433) at BAI's Retail Delivery Conference & Expo, Nov. 19-20, in New Orleans. While it will be shown on a Diebold Opteva advanced-function ATM, the solution can also be used with the popular ix series of Diebold ATMs.