Check Truncation at the ATM

Two companies have teamed up to create a system that allows banks to capture electronic images of checks as they are deposited into automated teller machines, a development they say will drive up ATM transactions as it encourages more bank customers to use ATMs for deposits. Infonox, Santa Clara, Calif., and Oklahoma City-based CheckClear LLC have announced their system just as Congress readies legislation that would give check images the same legal status as paper checks, reducing transaction costs and speeding up funds availability. The so-called Check 21 legislation is expected to be signed into law by President Bush in January and to take effect in 2005. According to the two companies, consumers have been reluctant to use ATMs to deposit checks because of “lack of confidence” in envelope deposits. They say ATM-based imaging programs conducted over the past year by a few major banks have shown consumers more willing to make deposits and have resulted in higher per-machine revenue. The system consists of Infonox’s deposit-imaging technology at the machine and CheckClear’s Endpoint Exchange Network, which connects 3,200 financial institutions to exchange check images for clearing._x000D_