SVPCO, the check image and paper check business of The Clearing House Payments Company L.L.C., today said that its average daily check image items and dollar value exceeded its paper check items and dollar value for the first time in its history.
In another sign of the growing adoption of image exchange, check images transmitted via the SVPCO Image Payments Network represented 51.0%, or 193.9 million items, handled by SVPCO in April. By comparison, SVPCO's paper check volume was 49%, or 8.7 million items a day. In April, average image dollar value was 54.5%, or $18.2 billion, compared to 45.2%, or $15.1 billion, in average daily paper check value. The dollar value of check images surpassed paper checks in January 2007.
"This is a truly historic milestone for the banking industry because the volume of paper check exchange handled by The Clearing House has now been surpassed for the first time and it's unlikely to represent a majority of check volume again," said Jerry Milano, Senior Vice President of The Clearing House, responsible for SVPCO-Paper Check Services. "This is another clear indication that a new era has arrived for the payments business."
Susan Long, Senior Vice President of The Clearing House, responsible for SVPCO-Electronic Clearing Services, said: "Image exchange has grown rapidly because financial institutions understand the strategic importance of building a 21st century check processing operation. At the same time, financial institutions see that as the economics of image exchange improve, the expense of paper check exchange increases. With image exchange gaining momentum in all regions of the country, the time to act is now. The good news is that there are cost-effective image exchange solutions for institutions with varying levels of volume."
Participants in the SVPCO Image Payments Network are Bank of America, The Bank of New York, BB&T, Comerica Bank, Fifth Third Bank, First Citizens Bank, HSBC Bank, Huntington National Bank, JPMorgan Chase Bank, KeyBank, LaSalle Bank, M&T Bank, National City Bank, PNC Bank, Sterling National Bank, Union Bank of California, U.S. Bank, Wachovia Bank, and Wells Fargo Bank. Through its relationship with the Federal Reserve and Endpoint Exchangenge, the Image Payments Network can reach more than 10,000 endpoints and help financial institutions of all sizes take advantage of image exchange.
The SVPCO Image Payments Network offers financial institutions a variety of connectivity options. The SVPCO Distributed Traffic Agent (DTA) enables financial institutions with larger volumes to transmit check images directly to each other. The SVPCO Gateway DTA is a cost-effective solution designed for institutions with smaller volumes or who are interested in gradually ramping up their image processing capabilities. The Image Payments Network can also be accessed through an institution's correspondent banking relationship or through a third-party processor.