SVPCO Low-Cost Option For Exchanging Check Images

SVPCO Gateway DTA allows institutions to send and receive bulk files of images through the Image Payments Network. SVPCO Gateway DTA enables financial institutions to connect directly to the network through a dedicated phone line and requires no installed software. Early in the third quarter, institutions will also be able to access the Image Payments Network through an existing Internet connection using File Transfer Protocol (FTP). Both options are designed for institutions that process less than 100,000 images per day or are interested in gradually ramping up their image processing capabilities.

Huntington National Bank of Columbus, Ohio, a subsidiary of Huntington Banchares, Inc., a $36 billion bank holding company with more than 380 branches in the Midwest, is the first institution to use the SVPCO Gateway DTA to gain access to the Image Payments Network.

“SVPCO Gateway DTA is enabling Huntington Bank to realize the strategic objective of cost effectively exchanging and settling check images,” said Jim Posani, Vice President and Item Processing Manager of Huntington Bank. “SVPCO worked closely with us to create a solution that works for our institution’s image volume needs and leverages the Image Payments Network.”

SVPCO Gateway DTA is one of three ways to connect with the nation’s leading image exchange network. SVPCO’s Distributed Traffic Agent (DTA), a solution developed by SVPCO with technology partner VECTORsgi, enables institutions with larger volumes to transmit check images directly to each other. The SVPCO Image Payments Network can also be accessed through an institution’s correspondent banking relationship or through a third-party processor acting as its agent.

“SVPCO Gateway DTA is the perfect choice for financial institutions such as Huntington Bank that want a low-cost, easy-to-implement solution for leveraging the SVPCO Image Payments Network to process check images,” said Susan Long, Senior Vice President of The Clearing House, responsible for SVPCO-Electronic Clearing Services: “The SVPCO Gateway DTA is part of SVPCO’s commitment to providing an image exchange solution that best fits each institution’s specific needs.”

The Image Payments Network is the nation’s private-sector volume leader in image payments. In May, the Image Payments Network reported that the number of monthly items grew 44.4% to an all-time high of 50.8 million, compared to 52 million for all of 2005.

The Image Payments Network is a single, end-to-end system that provides unparalleled control, security and processing efficiency for transmitting and settling check images directly between industry participants. The network enables financial institutions to exchange and settle check images peer-to-peer without a cumbersome central processing system, thus eliminating the expense of transporting physical checks.

All financial institutions that exchange images directly with each other via the Image Payments Network utilize the automated settlement function. Automated settlement provides real-time net and bilateral settlement position reporting and eliminates the manual intervention required with other settlement arrangements. Financial institutions can see their net debit or credit position online and view their position with all of the institutions participating in the Image Payments Network at any time.

In addition to Huntington, institutions participating in the Image Payments Network include Bank of America, BB&T, Comerica Bank, Fifth Third, HSBC Bank, JPMorgan Chase Bank, KeyBank, LaSalle Bank, M&T Bank, National City Bank, Union Bank of California, Wachovia Bank, and Wells Fargo Bank. Through its relationship with the Federal Reserve, the Image Payments Network can reach more than 10,000 endpoints and help financial institutions of all sizes take advantage of image exchange.

“As the volume of check images continues to increase rapidly, financial institutions of all sizes are looking to execute a cost-effective image exchange and settlement strategy,” Long said. “The SVPCO Gateway DTA helps institutions move to an all-electronic environment and eliminates the cost and risk of physically transporting paper checks.”

For more information about the SVPCO Image Payments Network, contact Susan Goold, Vice President, Products and Services, SVPCO-Electronic Clearing Services, 201.319.5554, susan.goold@svpco.com.