EDS Announces Solution for Truncating, Converting Checks to Electronic Transactions

The solution integrates software from CheckFree and NetDeposit on the EDS infrastructure to create a complete solution for processing paper checks electronically. The CheckFree PEP+ reACH account receivables conversion (ARC) software is used to convert data from paper checks into Automated Clearing House (ACH) transactions. The NetDeposit Decision Gateway software is used to route data and images from paper checks though the settlement process for optimized clearing and settlement. This solution allows a transaction to be presented to the paying bank as an image replacement document (IRD, or substitute check), an image, or an ACH transaction, depending on several definable factors. The Check Clearing for the 21st Century Act and the Check Truncation Act (CTA) have been passed by the U.S. House of Representative and the Senate, respectively. Both acts sanction the use of substitute check images as a legal representation of the original check. NACHAs Electronic Payments Association recently projected that the number of e-check payments made by U.S. consumers is likely to reach or exceed one billion in 2003. This fact emphasizes the industry?s movement toward increasing the percentage of electronic transaction processing performed on the more than 40 billion checks written each year.