Processor Takes Big Step Towards Conversion

One of the nation's major independent processing companies announced that it had successfully completed a pilot test of a new electronic check conversion capability that will be launched across the U.S. over the next few months.

The service allows billers to convert checks received by consumers into electronic transactions at the lockbox stage. Converted payments are then distributed through the automated clearinghouse system, and consumers get detailed information on the transaction instead of canceled checks with their bank statements.

The pilot program involved 330,000 credit card account holders making 150,000 payments per month at Regulus' Chicago lockbox operation. Because of the success of the program, Regulus is rolling it out to Los Angeles, Dallas, Tampa and Washington, D.C. and evaluating sites in the rest of the country. The company also is offering a bank certification program, which enables banks to pre-test and certify that they have the ability to receive ACH formatted files from Regulus so that lockbox clients can know beforehand which banks can accept the electronic conversions.

Copyright © 2003 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 13, No. 8, 11/03