Financial transaction processing firm Fiserv has acquired CheckAgain a provider of electronic cheque re-presentment services, for an undisclosed sum.
CheckAgain uses automated clearinghouse (ACH) transactions to electronically re-present returned cheques, primarily for major retailers. The company has developed a proprietary system for electronically recovering cheques that were returned because of insufficient funds.
Mark Damico, president of the Fiserv item processing group, says the acqusition has the potential for expanding the company's business into a complementary market.
"The vast majority of returned cheques are still processed using paper," he says. "However, as cheques continue to decline in volume and as more cheques move toward electronic processing, we can provide our clients a very valuable service by offering electronic processing of returned cheques through CheckAgain."
CheckAgain is based in Herndon, Va., and provides services to more than 400 clients. The company's employees, including chief operating officer Don Bauernfeind, are expected to join Fiserv.
Fiserv, already the third-largest processor of cheques in the US, says the acquisition will contribute approximately $15 million in annualised revenues.