Endpoint Exchange, SVPCo. Add Heft to Image Network Efforts

CheckClear LLC, which owns and operates what is so far the only national image-exchange network in operation for check processing, announced today it is planning to connect to an image exchange being built by the Federal Reserve. It also said it has made an agreement to connect to imaging equipment from NCR Corp. used by many community banks to image checks. Simultaneously, Small Value Payments Co. (SVPCo), which is planning to bring its own image-exchange network live next month, announced it has made an agreement with Unisys Corp. under which Unisys will provide consulting services to banks in an effort to smooth the way toward participation in the network. Oklahoma City-based CheckClear says it and the Fed's Retail Payments Office have agreed to open discussions toward exchanging digital images of checks and check data between the two networks. In a statement released today, the networks say the basis on which they are holding discussions toward connectivity is that Endpoint Exchange would prepare and send image cash letters to the Fed network, while Endpoint Exchange would be able to receive and process images sent from Reserve Banks for delivery to its members. Endpoint Exchange connects 4,000 mostly community banks and credit unions. As of last month, it was routing 140,000 images per day. CheckClear also said NCR Corp., Dayton, Ohio, had agreed to join Endpoint Exchange. Specifically, the agreement calls for connectivity to NCR's ImageMark imaging technology for community banks. Separately, SVPCo., a New York-based consortium owned by 22 major banks, and Unisys announced an agreement under which Unisys will offer consulting to banks on imaging, image exchange, and the technical aspects of the Check Clearing for the 21st Century (Check 21) Act, a federal law that goes iinto effect in October. “We look forward to working together [with Unisys] to encourage faster adoption of a check image exchange network throughout the industry,” said Hank Farrar, president of SVPCo., in a statement. By conferring legal status on so-called substitute checks, or paper printouts of check images, Check 21 is widely seen as fueling current efforts to build image-exchange networks. At least four separate national networks are under way or already in operation, including those of Endpoint Exchange, SVPCo., and the Fed. The fourth is Viewpointe Archive Services LLC, Charlotte, N.C, another bank-owned consortium.