Check 21 Solutions Invoke Technologies, Inc.

Check 21 Processing Just Got a Whole Lot Easier…

Committed to Assisting in the Transition from Paper Checks to Electronic Processing

An Innovator in Check 21 Software Tools Provide Solutions Customized to Individual

Needs Highly Responsive to the Needs of

Customers

Invoke Technologies, Inc.

Our Goals

Our Products

Check 21 Taskmaster™– DSTU X9.37/X9.100-180 Tool

MerchantScan™– Merchant Image Capture System

Custom Integration SolutionsCustom Software Development

Invoke Technologies, Inc.

Check 21

The financial industry is in a frenzy trying to create products and provide services that take advantage of the new Check 21 legislation. Paper checks are being transitioned to electronic images at an unprecedented pace. With 72 percent of total non-cash payments in the U.S. tendered in the form of checks, this currently comprises the largest part of the banking industry.

Through a strategy that incorporates electronic check presentment, electronic returns, truncation and related payment initiatives, your institution can develop a position of competitive superiority and simultaneously create significant new value without immediately overhauling the entire payments system.

Check 21

Check 21

In the current system of check processing, when a check is deposited, that item is transported to a central operations center. From there the item is sent through one or more intermediaries such as the Federal Reserve Bank or a clearinghouse before it is ultimately delivered to the paying institution.

Check 21

At each step, the check must be physically processed and transported. Under Check Truncation, items may be removed from the collection or return process, and the payment information on the checks captured and delivered electronically.

Check 21

Since October 28, 2004, the effective date of Check 21 legislation, almost $5 trillion per year in check payments have moved from traditional paper-based clearing processes to an improved, image-based process.

Check 21

More and more financial institutions are recognizing the benefits of utilizing Check 21, which include streamlined check processing, reduced paper, fraud protection and improved overall efficiency and security. Over time, the Check 21 legislation is expected to save the financial industry millions of dollars through reduction in the cost of transporting and processing paper items.

Check 21

Check 21

Create a new negotiable instrument called a substitute check or IRD (Image Replacement Document).

Provide that a properly prepared IRD is the legal equivalent of the original check.

Provide that any check is eligible to become an IRD. Require banks to accept legally equivalent IRDs.

Check 21 Does

Requite banks to accept check images. Give legal equivalence to check images. Mandate the destruction of original checks. Mandate check truncation. Exclude business or US Treasury checks Pertain to ACH transactions.

Check 21 Does Not

Easy-to-use interface provides detailed info about items as well as front and back images.

Uses a custom plug-in to convert data into X9.37/X9.100-180 for archival, research and transmission.

Search function allows items to be located by item number or amount.

Prints Substitute Checks (IRDs).

Check 21 Taskmaster™

Features

Formatted in Conventional Hierarchy

Displays Front and Back Image

Displays Records

Easily Integrated

Allows Field-Editing

Check 21 Taskmaster™

Features

Elimination of Courier Costs– Items can be captured remotely and

forwarded electronically. – Save on paperwork and personnel

costs.

The Benefits

Lower Operational Costs

Example

Bank A, in Wichita, KS is 210 miles from their Federal Reserve Bank in Kansas City, MO. A 420 mile round trip takes approximately 7 hours. They pay their courier $10/hr. The average price of gas in Kansas over the last three months is $2.93. Assuming the courier’s car meets the American average of 21 miles per gallon, approximately 10 gallons (9.96) are used round-trip. Thus,

420 mi/ 21 mpg = 20 gallons of gas 20 gallons x $2.93 = $58.60 gas 7 hrs x $10/hr = $70 courier cost$70 courier + $58.60 gas = $128.60 per trip$128.60 x 300 banking days/year = $38,580 per year

Using Electronic Exchange, Bank A saves $38, 580 / year

The Benefits

Reduction of Errors– Reduced keying and image quality

assurance diminish risk of “human error”.

Better Resource AllocationFaster Disaster Recovery with

Back-Up Files on Server

The Benefits

Lower Operational Costs

Faster access to funds– Items typically clear in 24 hours.– Payments/ Credits process is streamlined.

Eliminate “The Check is in the Mail”Earlier Fraud Detection

– Faster access to funds drastically cuts down on the window for check fraud.

The Benefits

Reduce “Float”

Example

Bank M has been receiving fraudulent checks. The criminals cash several checks over a three-day period and then discard the stolen checkbook. Thanks to a new system utilizing image cash letters, Bank M is able identify the fraudulent checks much quicker and help police catch the perpetrators.

The Benefits

Eliminate Geographic Restrictions– Anyone with a MICR-enabled scanner and

a secure internet connect can bank with you.

– Regional and national customers can consolidate to one bank.

The Benefits

Expand Your Territory

Example

Business X has been banking with Bank Y for 20 years. Recently, Business X has decided to expand nation-wide. Bank Y is only regional, but they are equipped to receive image item files. Rather than open accounts with local banks throughout the country, Business X purchases MICR-enabled scanners and electronically forwards their checks to Bank Y. This allows Business X to simplify their accounting by consolidating their banking. It also allows Bank Y to continue serving an important customer, and even grow with them.

The Benefits

Check 21 Taskmaster™ easily integrates into your current processing system.

User-friendly software means minimal training.

The Benefits

Easy Implementation

Later Deposit Cut-Off – A later deadline at the FRB means customers

can deposit at the bank later.

Special Fraud Protection– Check Truncation Act protects customers

against unauthorized and erroneous payments.

– Special refund procedure for losses incurred.

The Benefits

Customer Benefits

MerchantScan™

MerchantScan™ utilizes the latest technology in check processing to provide a user-friendly image capture system. Taking advantage of Check 21 legislation, MerchantScan™ provides all of the tools necessary to capture and convert checks into digital image files, making check management cost-effective and dependable.

How it Works

MerchantScan™ utilizes Check 21 Taskmaster™

Formatted in Conventional Hierarchy

Display Front and Back Image

Display and Edit Records

Easily Integrated

Search Function

Print IRDs

Benefits for Merchants

Faster Access to Funds– Same or next day availability of funds as checks

can be deposited immediately upon reception. Reduce or Eliminate “Bank Runs”

– No need to make several trips a day to the bank to deposit checks.

Consolidation of Accounts– Multiple accounts can be eliminated in favor of a

single deposit account, simplifying reconciliation.

Benefits for Merchants

Reduction of Errors– Reduced keying and image quality

assurance diminish risk of “human error”.Earlier Fraud Detection

– Faster access to funds drastically cuts down on the window for check fraud through quicker authentication and earlier fraud notification.

Benefits for Financial Institutions

Expanded Territory– Anyone with internet access is a potential

customer. Improved Customer Service

– Constant communication means quicker response time.

Benefits for Financial Institutions

Lower Processing Costs– Streamlined processing saves time and

money.Stay Ahead of the Competition

– Mark your position as a leader in industry technology.

What is Required?

On-Site PC Internet ConnectionApproved Scanner (available from

Invoke Technologies, Inc.)– e.g. Canon CR-55