SVPCO National Check Exchange Streamlines Check Processing for Financial Institutions Across the Country

Check Processing Operations in East, West and Midwest Culminate in the

Creation of National Service Operated by The Clearing House Payments Company



Feb 22, 2005, 00:00 ET from The Clearing House Payments Company

    NEW YORK, Feb. 22 /PRNewswire/ -- SVPCO - Check Services, the check
 processing business of The Clearing House Payments Company, today launched the
 SVPCO National Check Exchange, a new national check clearing service that
 provides participating institutions with the ability to exchange checks across
 regions more efficiently, following a universal set of rules.
     SVPCO National Check Exchange will help banks, credit unions, thrifts and
 savings institutions significantly lower the cost of transportation, float,
 contingency operations and adjustments, while delivering unprecedented
 economies of scale and the potential for future price stability as check
 volumes continue to decline.
     On March 4, the 30-day registration period opens for institutions seeking
 to go live on The National Check Exchange on April 4.
     "The National Check Exchange represents the next phase in the evolution of
 the U.S. payments system by creating a national check clearing system.  The
 single set of streamlined rules significantly improves the efficiency of check
 processing," said Peter Allutto, Senior Vice President of The Bank of New York
 and the Chairman of The Clearing House business committee responsible for
 SVPCO - Check Services.  "The National Check Exchange permits institutions
 from one region to exchange and settle items with other institutions under a
 single set of rules.  It's an important milestone that enables institutions of
 all sizes to benefit from the scale and geographic reach of The Clearing
 House."
     Initially, the more than 400 institutions, representing $3.6 trillion in
 checks exchanged each year, can enroll to exchange checks under rules
 developed by the Electronic Check Clearing House Organization (ECCHO) and
 implemented by The Clearing House.  These institutions can leverage their
 existing check clearing arrangements to collect and settle cash letters and
 new substitute check cash letters.  Institutions that previously exchanged
 checks based on multiple regional rules are now automatically allowed to
 exchange checks with institutions in any region through ECCHO rules.
 Inquiries from new participants are invited.
     The National Check Exchange was created from the merger of check
 operations in the Eastern, Central and Western U.S. following The Clearing
 House's acquisition of the check clearing business of the Western Payments
 Alliance and the Chicago Clearing House Association.
     Participation in the National Check Exchange does not require current
 members to install new systems or processes.  Institutions simply direct their
 processors or messengers to drop packages of checks or substitute checks at
 The Clearing House facilities in New York, Philadelphia, Chicago, Los Angeles
 and San Francisco.  The Clearing House delivers the package through its
 regular check exchanges and settles with other institutions in a special
 national settlement.
     "Our unique presence in the largest national check markets makes this a
 natural extension of our traditional check services business," said Jerry
 Milano, Senior Vice President of The Clearing House Payments Company,
 responsible for SVPCO - Check Services.  "Participants can leverage The
 Clearing House's long-term investments in check clearing infrastructure now,
 and move into the next generation of payments with electronic check
 presentment and check image exchange through SVPCO - Electronic Clearing
 Services."
     Check image exchange, including the printing of substitute checks, is
 expected to increase significantly over the next decade as more financial
 institutions create and process substitute checks following the enactment of
 Check 21, which makes substitute checks the legal equivalent of the original
 paper item.  Transmitting substitute checks across the country eliminates both
 time and expensive transportation in collecting checks from region to region.
 Using the existing regional check exchanges to deliver the substitute checks
 increases the cost savings to the industry.  The new National Check Exchange
 services are designed to use the extensive transportation services in place in
 each region where The Clearing House has facilities.
     SVPCO - Check Services is offering the National Check Exchange service to
 all of its customers in the Eastern, Midwest and Western Regions.
 Participants can enroll through their regional office.  For more information
 on new participation, please contact joe.wicklander@theclearinghouse.org or
 (312) 913-2575.
 
     About The Clearing House Payments Company
     The Clearing House Payments Company (http://www.theclearinghouse.org) is a
 private sector, global payment systems infrastructure that clears and settles
 20 million payments for more than $1.5 trillion per day.  The Clearing House
 serves more than 1,600 U.S. financial institutions and hundreds of
 international participants and manages 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; electronic check
 presentment; and an 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, Bank of
 America, The Bank of New York, Bank of Tokyo-Mitsubishi/Union Bank of
 California, BB&T, Citibank, Citizens Bank, Comerica Bank, Deutsche Bank, HSBC
 Bank, JPMorgan Chase Bank, KeyBank, M&T Bank, National City Bank, PNC Bank,
 SunTrust Bank, U.S. Bank, Wachovia Bank, and Wells Fargo Bank.
 
 

SOURCE The Clearing House Payments Company
    NEW YORK, Feb. 22 /PRNewswire/ -- SVPCO - Check Services, the check
 processing business of The Clearing House Payments Company, today launched the
 SVPCO National Check Exchange, a new national check clearing service that
 provides participating institutions with the ability to exchange checks across
 regions more efficiently, following a universal set of rules.
     SVPCO National Check Exchange will help banks, credit unions, thrifts and
 savings institutions significantly lower the cost of transportation, float,
 contingency operations and adjustments, while delivering unprecedented
 economies of scale and the potential for future price stability as check
 volumes continue to decline.
     On March 4, the 30-day registration period opens for institutions seeking
 to go live on The National Check Exchange on April 4.
     "The National Check Exchange represents the next phase in the evolution of
 the U.S. payments system by creating a national check clearing system.  The
 single set of streamlined rules significantly improves the efficiency of check
 processing," said Peter Allutto, Senior Vice President of The Bank of New York
 and the Chairman of The Clearing House business committee responsible for
 SVPCO - Check Services.  "The National Check Exchange permits institutions
 from one region to exchange and settle items with other institutions under a
 single set of rules.  It's an important milestone that enables institutions of
 all sizes to benefit from the scale and geographic reach of The Clearing
 House."
     Initially, the more than 400 institutions, representing $3.6 trillion in
 checks exchanged each year, can enroll to exchange checks under rules
 developed by the Electronic Check Clearing House Organization (ECCHO) and
 implemented by The Clearing House.  These institutions can leverage their
 existing check clearing arrangements to collect and settle cash letters and
 new substitute check cash letters.  Institutions that previously exchanged
 checks based on multiple regional rules are now automatically allowed to
 exchange checks with institutions in any region through ECCHO rules.
 Inquiries from new participants are invited.
     The National Check Exchange was created from the merger of check
 operations in the Eastern, Central and Western U.S. following The Clearing
 House's acquisition of the check clearing business of the Western Payments
 Alliance and the Chicago Clearing House Association.
     Participation in the National Check Exchange does not require current
 members to install new systems or processes.  Institutions simply direct their
 processors or messengers to drop packages of checks or substitute checks at
 The Clearing House facilities in New York, Philadelphia, Chicago, Los Angeles
 and San Francisco.  The Clearing House delivers the package through its
 regular check exchanges and settles with other institutions in a special
 national settlement.
     "Our unique presence in the largest national check markets makes this a
 natural extension of our traditional check services business," said Jerry
 Milano, Senior Vice President of The Clearing House Payments Company,
 responsible for SVPCO - Check Services.  "Participants can leverage The
 Clearing House's long-term investments in check clearing infrastructure now,
 and move into the next generation of payments with electronic check
 presentment and check image exchange through SVPCO - Electronic Clearing
 Services."
     Check image exchange, including the printing of substitute checks, is
 expected to increase significantly over the next decade as more financial
 institutions create and process substitute checks following the enactment of
 Check 21, which makes substitute checks the legal equivalent of the original
 paper item.  Transmitting substitute checks across the country eliminates both
 time and expensive transportation in collecting checks from region to region.
 Using the existing regional check exchanges to deliver the substitute checks
 increases the cost savings to the industry.  The new National Check Exchange
 services are designed to use the extensive transportation services in place in
 each region where The Clearing House has facilities.
     SVPCO - Check Services is offering the National Check Exchange service to
 all of its customers in the Eastern, Midwest and Western Regions.
 Participants can enroll through their regional office.  For more information
 on new participation, please contact joe.wicklander@theclearinghouse.org or
 (312) 913-2575.
 
     About The Clearing House Payments Company
     The Clearing House Payments Company (http://www.theclearinghouse.org) is a
 private sector, global payment systems infrastructure that clears and settles
 20 million payments for more than $1.5 trillion per day.  The Clearing House
 serves more than 1,600 U.S. financial institutions and hundreds of
 international participants and manages 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; electronic check
 presentment; and an 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, Bank of
 America, The Bank of New York, Bank of Tokyo-Mitsubishi/Union Bank of
 California, BB&T, Citibank, Citizens Bank, Comerica Bank, Deutsche Bank, HSBC
 Bank, JPMorgan Chase Bank, KeyBank, M&T Bank, National City Bank, PNC Bank,
 SunTrust Bank, U.S. Bank, Wachovia Bank, and Wells Fargo Bank.
 
 SOURCE  The Clearing House Payments Company