Source: The Clearing House Payments Company
Electronic Clearing Services, the electronic check and check image exchange business of The Clearing House Payments Company L.L.C., today announced that the Federal Reserve is now sending check images to financial institutions via the SVPCO-Image Payments Network, the nation's leading check image system.
The Fed sent its first images to National City Bank through the Image Payments Network and expects to send more check images to additional banks in coming months. The Fed first linked to the Image Payments Network in February 2005 to receive images. Since then, the Fed has received check images from 10 banks, up from two initially, and more are expected.
"The Federal Reserve's participation in the Image Payments Network, along with the participation of an increasing number of banks, reinforces the fact that image exchange is no longer a vision, but rather a real strategic opportunity to streamline operations and reduce costs," said Susan Long, Senior Vice President of The Clearing House, responsible for SVPCO-Electronic Clearing Services. "The Fed's ability to send images through the Image Payments Network will accelerate the movement toward image exchange and underscores the important role that the Image Payments Network is playing in this new era of digital check images."
The Federal Reserve/SVPCO-Image Payments Network connection expands the options available to institutions across the country seeking to take advantage of the efficiencies of digital image technology as image cash letters can be cleared to any financial institution in the country.
"The Federal Reserve/SVPCO-Image Payments Network connection is enabling a growing number of financial institutions to clear electronic items in a safe and secure environment," said Fred Herr, Senior Vice President with the Federal Reserve Bank's Retail Payment Office. "The Federal Reserve/SVPCO-Image Exchange connection also continues to promote payment system efficiency by eliminating the need to establish redundant infrastructure to clear image cash letters."