News

Chexar to acquire Clear Payments Inc.

June 11, 2012

Chexar Networks Inc. announced today that it has signed a letter of intent to acquire Nashville, Tenn.-based Clear Payments Inc., a provider of remote deposit capture and mobile solutions. The transaction is expected to close by the end of the month.

“We have been partnering with CPI for several years now and utilize some facet of their technology on almost every transaction we process," Chexar founder and CEO, Drew Edwards said. "Considering that the professionals at CPI work with us today almost like we are already one company, this transaction is a natural for us both.”

“This acquisition formalizes a relationship that grew very strong over the past several years as we have worked side by side to provide Good Funds solutions to many of the industry’s prominent players," said Clear Payments Founder and Chairman, Randy Simoneaux. "Now a single-source fully integrated Good Funds transaction process provides our clients faster entry to the market and simplifies implementation.”

To demonstrate how the companies work together, Chexar provided the example of a client bank that chooses to offer cash-based banking services that include: check cashing; prepaid card loading; or fee-based deposits with instant and irreversible funds availability. Once Chexar approves and guarantees an item, the bank and the consumer can treat the item as if it was a cash deposit because it is Good Funds and won’t be reversed.

Part of this processing includes the use of CPI’s solution to extract information from the image of the check for Chexar’s use in its risk evaluation. And, if the item is approved, CPI technology manages the deposit process and settlement of the check for Chexar.

“Many people think of the need for good funds as simply a check cashing opportunity." said Edwards. "The reality is this is more of a mass market opportunity because the $5.7 trillion in checks written to consumers are legacy type instruments with provisional availability that can and does get reversed. Provisional deposit availability simply doesn’t fit with today’s prepaid and instant mentality. We see our Spyke as The Good Funds Network enabling the new deposit for both banks and prepaid issuers in the marketplace.”

CPI has also developed several mobile-related technologies that Chexar is utilizing to streamline its mobile deposit capture and guarantee solution in the marketplace. Many of the prepaid industry's top players including card issuers, program managers, mobile banking and mobile remote deposit capture providers are currently implementing Chexar's solution

For more on this topic, visit the deposits/Check 21 research center.