NetDeposit Enables Banks To Offer Back Office Check Conversion

Checks are still the most widely used form of payment, but the costs associated with processing them have increased 45 percent in the last five years. The new BOC rules, which became effective March 16, 2007, now allow businesses to accept consumer checks at the point of purchase and then process them electronically, away from the register. These checks are converted into ACH (Automated Clearing House) debits during back office processing. For merchants, the electronic processing of a check is a lower cost alternative to handling paper checks. In addition to cost savings, BOC also accelerates check processing, providing businesses that opt for BOC with the benefits of fewer returns, earlier fraud detection and fewer errors.

"As merchants begin to realize the benefits of BOC, they will begin calling on their banks for a solution," said Danne Buchanan, CEO of NetDeposit, a pioneer in the check processing industry. "NetDeposit's new offering will help banks quickly convert more customers to remote deposit capture and its ancillary offerings such as BOC."

NetDeposit used its expertise in check conversion, connecting remote deposit capture to ACH clearing alternatives, to create its BOC solution. The product provides a back office clearing alternative that does not impact the merchant's existing check collection and operations at the front counter or cash register. NetDeposit's support for BOC is integrated into its existing RDC systems enabling NetDeposit clients to process items on a single platform at a central location.

The offering provides financial institutions with:

• Technology that leverages new NACHA regulations and RDC for a value added solution in the retailer marketplace;
• A single platform for check truncation and check conversion;
• Market advantage with high-demand BOC solution.

By offering BOC, financial institutions will be able to provide retailers and merchants with:

• A low-cost alternative to handling paper checks;
• Accelerated funds availability and return item notification;
• No impact to current register system or POS processes and procedures;
• Improved efficiency for deposit creation;
• A single process for all check items with conversion eligibility handled at the bank.

NetDeposit continues to lead the RDC market with a proven track record of providing measurable value to its customers and enabling process efficiencies. NetDeposit customers include a number of the world's largest cash management banks and successful regional banking organizations in the US.