Key wins PriceChopper ACH mandate
01 April 2004 | 1319 views | 0
KeyBank (NYSE: KEY) has been selected by The Golub Corporation to provide point-of-purchase ACH origination services to expedite electronic check clearing for its Price Chopper supermarket chain.
Approximately 5 percent of the 38.5 million point-of-purchase (POP) transactions reported by NACHA -- the electronic payments association -- in the third quarter of 2003 can be attributed to Price Chopper, making it one of the top POP originators in the country. When the program is fully implemented, Key expects to handle 7.8 million transactions annually for the company.
"Since its stores generate such a high volume of retail point-of-purchase checking transactions, Price Chopper can now gain efficiencies and reduce costs while ensuring convenience for its customers," said Samuel R. Robb III, E-payments product manager, KeyBank, Global Treasury Management. "Working together, a solution was developed that positions Price Chopper and Key as leaders in check conversion."
In its quest to minimize the overhead associated with back-office check processing and minimize collection costs, Price Chopper looked toward implementing a streamlined check clearing process. Adopting POP at its chain of grocery stores will not only improve funds availability and collection rates, but will significantly reduce its store office labor expense.
"Among the many benefits we anticipate from KeyBank's advanced services are the cost savings resulting from faster, more efficient electronic processing, reduced bank service charges and fewer losses from returned checks," said Jennifer Kenneally, vice president and treasurer, The Golub Corporation. "The enhanced service reinforces the positive shopping experience our customers expect."
KeyBank is one of the few financial institutions to offer a full suite of check conversion solutions, including Accounts Receivable Entry (ARC), Point- of-Purchase Entry (POP), Telephone-Initiated Entry (TEL), Internet-Initiated Entry (WEB) and Re-Presented Check Entry (RCK) services.