Comerica Bank is to boost efficiency of its check clearing operations using technology rendered by SVPCO Electronic Clearing Service.
Detroit-based Comerica Bank is now exchanging and settling check images through the SVPCO Image Payments Network created by the electronic check and check image exchange business of The Clearing House Payments Company L.L.C.
Image exchange and settlement are conducted through SVPCO’s Distributed Traffic Agent (DTA), a solution developed by SVPCO with VECTORsgi, one of its strategic technology partners. The DTA enables financial institutions to transmit check images directly to each other cost effectively. The DTA works in conjunction with existing item-processing systems to link institutions into the network and enables institutions to directly exchange payloads of electronic images. The network provides encryption to ensure that all customer data remains private and secure.
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 November, the Image Payments Network set new volume records reporting a 27 percent increase in daily average dollar value, a 27 percent increase in total monthly dollar value, and a 38 percent increase in daily average items all compared to the figures from October 2005.
Nine major banks within the US are now sending check images through the Image Payments Network a figure that SVPCO Electronic Clearing Service expects will increase. Through its relationship with the Federal Reserve, SVPCO Electronic Clearing Service says the Image Payments Network can reach more than 10,000 endpoints and help financial institutions of all sizes take advantage of image exchange.