News

Infonox, CheckClear partner on check truncation at ATM

October 6, 2003

SANTA CLARA, Calif - Infonox, a transaction processing software and infrastructure provider, says it has teamed with CheckClear L.L.C., operator of the Endpoint Exchange national electronic check clearing network, to image capture and truncate checks at the ATM.

Under the agreement, Infonox will certify its Active Payment Platform (APP) with CheckClear's Endpoint Exchange Network, which has more than 3,200 financial institution participants, creating what the two companies say is an end-to-end check truncation solution.

The action positions financial institutions to clear and settle check payments through the exchange of check images deposited at the ATM with little or no development, according to a news release.

The two companies are positioning themselves in wake of the expected passage, before the end of this year, of the "Check Clearing For the 21st Century Act," which will legalize the use of a substitute check or image replacement document (IRD) within the check clearing system, speeding up the availability of funds. (See related story Passage of Check 21 advances idea of check imaging at ATM)

Infonox has a similar partnership with Wausau Financial Systems (WFS). (See related story WFS, Infonox to demo end-to-end deposit automation at RDS)

The combination of deposit imaging and truncation will bring convenience to the consumer while increasing the value proposition of an ATM program for banks, according to the release.

Over the past year a few major banks have run ATM deposit imaging programs, eliminating the use of deposit envelopes. Results showed increased consumer acceptance and an increase in per-machine ATM revenue. (See related story Improving ATM deposits)

One of the off-the-shelf transactions available in the Infonox APP is a deposit imaging capability that enables check deposits directly into an ATM without envelopes. Check images are captured electronically, and merged into the advanced workflow of image-enabled POD (Proof Of Deposit) work, such as CAR (Courtesy Amount Recognition) and balancing. The paper check is truncated and the check image can be cleared through the Endpoint Exchange Network.

The ATMs can also be configured to accept currency deposits with the use of currency acceptors to facilitate such deposits and eliminate operational as well as fraud costs related to the handling of currency deposits.

APP supports Wincor Nixdorf, NCR, Diebold, and Tidel ATMs, according to the release.

"The ATM has until now been a very overlooked factor in improving the check deposit handling process," said Safwan Shah, president of Infonox, in the release. "With check images captured remotely at the ATM, truncation of the paper check at the earliest point of the process now becomes a reality, with the revenue from the paper check product being maintained and enhanced through electronic clearing and settlement via the Endpoint Exchange Network."

"The ability to capture a check image at the ATM significantly enhances a bank's efficiency by reducing deposit processing and back office costs," said Mark Craig, general manager of CheckClear L.L.C. "We are prepared to provide financial institutions around the country with a complementary solution and business strategy that takes maximum advantage of the industry's move toward check truncation and image exchange."