GRAND RAPIDS, Mich. -- After serving as pilots for Processing Alliance's CU*Check 21 electronic deposit automation solution, three Michigan CUs--Frankenmuth Credit Union, Kent County Credit Union and Alpena Community Credit Union--are now scanning, transmitting and retrieving live check images online.
The three CUs will soon begin the forward exchange of image cash letters. Forward exchange of cash letters can result in faster clearing times, earlier credit, reduced check fraud exposure timeframes, and lower costs. CU*Check 21 also features a battery of fraud detection and prevention features including routing and transit number verification and MICR detection.
CU*Check 21 captures images of items at the credit union's back counter and transmits them to Processing Alliance. By translating the MICR information on the item, an exchange unit determines the financial institution upon which the item is drawn, and the least costly route to present the item for collection. Routing may be done through the Federal Reserve Bank, a national exchange network such as Endpoint Exchange or SVPCo, or directly with the financial institution upon which the check is drawn. By instituting this type of routing, Prime Alliance is able to keep processing costs down and passes those savings along to its clients.
"CU*Check 21 not only reduces our courier dependency and costs, but enhances our image retrieval capability to staff and members," said Vickie Schmitzer, CEO of Frankenmuth Credit Union in Frankenmuth, Mich. "We have already benefited from the fraud detection features included with CU*Check 21 via its MICR detection capabilities. We think this product is a big winner."
Processing Alliance said it has secured several more commitments from credit unions. The CUSO, founded by CU*Answers and Corporate One Federal Credit Union, also plans to offer a share draft processing solution in the future.