Wells Fargo bypasses Federal Reserve for check clearing with Fiserv

Source: Fiserv

Wells Fargo & Company (NYSE:WFC) has increased its volume of electronic payments with other financial institutions by clearing checks through image exchange with Fiserv Solutions, Inc. (NASDAQ:FISV).

Based in Brookfield, Wis., Fiserv is a leading provider of information technology services to the financial industry.

Under the agreement, the Fiserv Clearing Network (FCN) - a nationwide clearing service - sends deposited check images and data to Wells Fargo for least-cost routing through image exchange with settlement through Viewpointe, a provider of check image exchange and archive services. In addition, the agreement allows Wells Fargo to send check images for clearing to Fiserv Clearing Network member banks, bypassing the more expensive clearing through the Federal Reserve.

"This relationship accelerates Wells Fargo's access to clearing items for financial institutions through image exchange," said Jim Gattman, senior vice president, Clearing and Transportation for Wells Fargo. "Working with Fiserv helps us reduce costs for clearing, couriers, adjustments, and cash letter fees for both of us."

Tom Warsop, Fiserv group president for financial institutions, said the pact with Wells Fargo will provide some significant advantages to Fiserv Clearing Network clients. "We have worked hard since founding the Fiserv Clearing Network to create an exchange utility that leverages the scale of our check processing operations and enables our clients to gain unique benefits as the industry moves forward with check electronification," Warsop said. "This agreement with Wells Fargo is a major move toward the fulfillment of that strategy."

The agreement, which took effect July 29, has increased the number of check images that Wells Fargo clears by over a half-million images per day. Eventually, the process will handle several million items per day.

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