NACHA Rule Changes Create Profitable Opportunities

Your Bank Can…..

· Offer New Services to Businesses
· Save Internal Processing Costs
· Reduce Paper Checks in Proof Dept.

Your Business Customer Can….

· Eliminate "Chasing Paper to The Bank"
· Process Personal Check Payments Faster
· Internet Access of Archived Checks & Receipts

WHAT'S NEW …

Banks and their customers are now able to process personal checks more efficiently due to recent rule regulation changes by NACHA.

Effective March 15th of 2002, personal checks that are mailed or deposited into a drop box can be converted into ACH files for electronic processing.

For example: Personal checks for loan payments drawn on other financial institutions are quickly transformed into electronic files. They are imaged, archived, and take full advantage of all electronic processing guidelines.

After you have passed the paper check through the micr reader/imager, you can simply drop the check into the shredder, once the transaction processes electronically.

COST SAVINGS:

Reducing paper checks throughout your bank creates higher operational savings and other streamlined features.

When your business customer uses this new service, personal checks are instantly imaged and converted to an electronic debit from the consumer's checking account. Paper checks are no longer required to be …

· Processed by Tellers
· Sent to the Proof Department
· Sent to the Federal Reserve
· Sent to a Correspondent Financial Institution

The equipment required to transform paper checks into electronic payments and the service used for processing is very inexpensive.

Reconciliation is automated and original document return costs are eliminated. Document retrieval through secure access of web-based check image storage becomes instantaneous.

Check re-presentment becomes a fully automated process with the percentages of collection substantially increased.

HOW THINGS WORK:

Personal checks are inserted through a reader that captures the image of the check and records Micr line information used for electronic debit, to the consumer's checking account. The payment and image files are sent to our data center for processing, storage, and instant retrieval availability. Paper checks must then be shredded within 14 days.

OTHER BENEFITS:

· The funds will be collected and cleared by the following business banking day.

· NSF returns are reported within 48 hours.

· Online reports monitor all transactions and all payments flow through current Financial Institution ACH systems.

· Financial Institution personnel and/or customers can quickly retrieve imaged checks and payment receipts directly from the web for verification of payments.

· The whole process of check re-presentments will only take minutes instead of hours.

· Administrative "paper flow" through the system is reduced.

· Payee information that is shown on the monthly statement to the consumer contains more detail.

Businesses that receive high volumes of personal checks (municipalities, schools, churches, medical professions, etc) can use this reader for back office processing.

Your business customers will receive all the benefits of an electronic processing service and may increase their cash flow. Plus, this will reduce the number of paper checks that flow through your bank.