EDS Financial Processing Expertise Expands Services Options for The National Clearing House (NCHA)

EDS Enhanced Check Clearing and Payment Services offering changes paper checks into IRDs as early as possible in the payment clearing and settlement process, increases security and speed and ultimately lowers costs to facilitate payments. This agreement comes at a critical time in the financial services industry as institutions prepare for the implications of the new Federal government Check 21 legislation. Check 21 grants substitute checks that meet certain criteria the legal equivalent of the original paper version, allowing images to be transported electronically and printed locally as IRDs. Member Benefits NCHA services include local, regional, and national check clearing and settlement (for checks and check images), joint transportation programs and risk management initiatives. Settlement services are also extended to other clearing houses across the country. The agreement with EDS strengthens the portfolio of services they provide to their members, who will realize the following benefits: -- decreased costs -- increased revenues -- reduced payments system risks -- simplified administrative processes The agreement also provides members with a voice in the continued development of a private sector infrastructure to facilitate innovations in the national payment system. EDS will provide the following services to NCHA: Enhanced Check Clearing and Payment Services which consists of the application, technology and platform for Image Exchange and IRD. The platform runs on an application under which check images and magnetic ink character recognition (MICR) data are transmitted to an EDS central site where clearing decisions are made and executed. Processing capabilities include distributed Image Replacement Document (IRD) printing at one of EDS network print centers for efficient clearing and image exchange. These services are powered by NetDeposit -- a software application that facilitates the capability for Image Exchange, ACH and IRD creation of monetary items. In a high-speed transport model, the application takes images and MICR files in a standard X9 format at a batch level. Items are decisions based on pre-established Business Rules, and outputs are created as identified. The application provides for flexible reporting of data, settlement, all items files and archive fees as necessary. EDS Payment Services Enhanced Payment and Clearing Services is one of the services under EDS integrated payment services in the Business Process Outsourcing portfolio. EDS is a global leader in payment services, working with clients to customize technology solutions as payments move from paper to electronic and digital based environments. The payment service offerings include check capture and back office processing; remittance and lock box; ACH outsourcing; enhanced payment and Check 21 clearing services and convenience pay via telephone and Internet. EDS Enhanced Payment and Clearing Services powered by NetDeposit, offer the following benefits to NCHA and all its clients: -- Float Improvement with nearly 100 percent 0-day or 1-day availability of funds. -- Fraud prevention with earlier returns notification and integrated 3rd party services. -- Operational Savings with reductions in encoding, clearing fees, check deposit preparation time and courier costs. -- Consolidation of regional or nationwide check deposits to a single account (geography doesnt matter). -- Elimination of need for reserve balances at multiple banks. -- More funds are available for debt reduction or investing. -- Elimination of bank fees for insufficient reserve balances to cover NSF on returned items, which means reduced cash management and analysis resource requirements. EDS in Business Process Outsourcing EDS BPO allows clients to unl