CheckFree Corporation (Nasdaq: CKFR) today announced that TD Banknorth has selected the company to deliver a solution that will allow the bank to process its own official checks and integrate into its CheckFree ARP/SMS check and deposit reconciliation system.
The new solution will assist TD Banknorth in ensuring the validity of official bank checks being cashed, the timely reconciliation of the accounts, and supplemental reporting for research and resolution purposes. It is designed to both enter and evaluate issues in a memo post status to ensure proper cashing of official bank checks. The solution will provide tellers with information that will assist them in determining whether checks should or should not be paid, thereby reducing fraud and risk exposure at the teller line. In addition to fraud protection at the branches, the use of a memo post issue can help ensure that the balance of the official bank check account is not misstated or incorrectly funded prior to DDA posting.
With nearly 600 branches, TD Banknorth operates an extensive retail banking network in Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, and Vermont, including many rural locations, which adds to the challenge of processing official bank checks on a timely basis. The new solution helps reduce the risk associated with official check processing that is currently outsourced to a vendor that is exiting the market. TD Banknorth is one of the first banks affected by the decision.
"We were faced with the challenge of finding a supported solution to replace our current outsourced vendor and to help us mitigate the risk and potential fraud associated with cashing official bank checks at the teller line. We also needed a solution that can be integrated into our current teller positive pay and reconciliation system," said Joe Hanson, executive vice president, operations, TD Banknorth. "We have worked with CheckFree in implementing many of our treasury software solutions, so it is a natural step for them to develop this module and help us create a more seamless payments reconciliation and reduced fraud environment."
"CheckFree has worked extensively with TD Banknorth to implement the bank's electronic payment and check and deposit reconciliation systems. Through our experience, we're confident this solution will help TD Banknorth significantly reduce its exposure at its teller line for official bank check cashing," stated Samuel Robb, vice president, product management, CheckFree Corporation. "We plan to make this technology available for other banks facing the same official bank check cashing and reconciliation challenges."
CheckFree plans to complete the delivery of the new solution for TD Banknorth in early 2008. Additional offerings that will also be available include escheatment of aged outstanding issue items in compliance with the various state regulations.