Key Messages: More than 18,500 paying institution routing transit numbers are receiving images for...

Key Messages:

More than 18,500 paying institution routing transit numbers are receiving images for payment instead of paper checks. These represent almost 14,000 financial institutions.

Substitute Checks have facilitated the transition from paper checks to check images. The volume of substitute checks peaked during the second quarter of 2008 with 875 million and then declined by 31% during the first quarter to 603 million.

On an average day during March 2009, 13,778 institutions received over 53 million check images for posting. When the March volume is annualized, it totals 13.4 billion for $18.1 trillion. Also, another 9 million checks per day that were sent as images and delivered to paying institutions as substitute checks. These totaled 2.2 billion checks per year and $2.5 trillion.

This CheckImage Collaborative image clearing report reflects transactions settled through the Federal Reserve, Viewpointe, SVPCO and local / regional exchanges. When the same payments were cleared through two or more of these organizations, those payments were counted only once.

The 2007 Federal Reserve’s Payments Study shows that the volume of checks (both written and paid) continue to be larger than debit card, credit card or ACH transactions. The report also shows that the dollar amount of checks increased from 2003 to 2006 from $40 to $41.7 trillion.

CheckImage CollaborativeCommunications Work Group

Highlights:

Chart reflects volume received by DFIs for

payment from other DFIs or an intermediary.

Average daily image volume grew from 21.2 to

53.5 million from April 2007 to March 2009.

March 2009 volume annualized is 13.4 billion

images received per year. Based on the Fed’s

2007 Payments Study this is 44% of all checks

paid in 2006.

Data Sources:

Transactions settled through the Federal Reserve,

Viewpointe, SVPCO and other local / regional

exchanges

# It

ems

in M

illi

on

sAverage # of

Images Received /Day

Mar

-09

Jun-0

7

Aug-07

Oct-0

7

Dec-0

7

Feb-0

8

Apr-08

Jun-0

8

Aug-08

Oct-0

8

Dec-0

8

Feb-0

9

Apr-070

369

121518212427303336394245485154

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,00011,00012,00013,00014,00015,00016,00017,000

# o

f R

/Ts

Rec

eivi

ng

Im

ages

Highlights:

Chart reflects the number of R/Ts that received

images from other DFIs or an intermediary.

Number of receiving R/Ts grew from 8,773 to 18,590 from April 2007 to March

2009.

18,590 routing transit numbers represents 13,778 institutions or

approximately 87% of all U. S. institutions that

received check images.

Data Sources:



exchanges

18,00019,000

Mar

-09

Jun-0

7

Aug-07

Oct-0

7

Dec-0

7

Feb-0

8

Apr-08

Jun-0

8

Aug-08

Oct-0

8

Dec-0

8

Feb-0

9

Apr-07

Number of R/Ts

ReceivingImages

Highlights:

All checks were imaged before reconversion to

substitute checks.

Chart reflects checks received by DFIs for


The monthly dollar amount received grew from $958

billion to almost $1.58 trillion.

Annualized March 2009 dollar amount = $18.1

trillion/yr.

$18.1 trillion is 43% of the total dollars cleared via

check payments.

Data Sources:



exchanges

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$ Amounts of Images& Substitute Checks

Forward Collection Only

$ A

mo

un

ts i

n B

illi

on

s

Mar

-09

Jun-0

7

Aug-07

Oct-0

7

Dec-0

7

Feb-0

8

Apr-08

Jun-0

8

Aug-08

Oct-0

8

Dec-0

8

Feb-0

9

Apr-07

Data Sources:



exchanges

Highlights:

All checks were imaged before reconversion to

substitute checks.



Over 24 month period Image-based clearing

volume grew from 677 to 1,377 million / mo with 85%

of the volume cleared by image in March 2009 (22

days in March).

The annualized March ‘09 volume (15.7 billion

items/yr.) is approximately 51% of total check volume

paid.

0100200300400500600700800900

1,0001,1001,2001,300

# It

ems

in M

illi

on

s1,400

Substitute Checks

Images

# of Images & Substitute ChecksForward Collection Only

Mar

-09

Jun-0

7

Aug-07

Oct-0

7

Dec-0

7

Feb-0

8

Apr-08

Jun-0

8

Aug-08

Oct-0

8

Dec-0

8

Feb-0

9

Apr-07

Highlights:



Average daily image volume grew from .08 to 50.98 million from Qtr 1

2005 to Qtr 1 2009.

Qtr 1 2009 volume annualized is 12.4 billion

images received per year. Based on the Fed’s

2007 Payments Study this is 41% of all checks

paid in 2006.

# It

ems

in M

illi

on

s

0369

121518212427

Average # of

Images Received

/Day

Qtr 1

'05

Qtr 2

'05

Qtr 3

'05

Qtr 4

'05

Qtr 1

'06

Qtr 2

'06

Qtr 3

'06

Qtr 4

'06

Qtr 1

'07

Qtr 2

'07

Qtr 3

'07

Qtr 4

'07

Qtr 1

'08

Qtr 2

'08

Qtr 3

'08

Qtr 4

'08

Data Sources:



exchanges

303336394245

48

Qtr 1

‘09

Highlights:

Chart reflects images checks received by DFIs for payment from other DFIs or

an intermediary.

The quarterly dollar amount of images received grew from $1.7 billion to $3.7

trillion.

Annualized Quarter 1 2009 dollar amount = $14.9

trillion/yr.

$14.9 trillion is 37% of the total dollars cleared via

check and is about 5 times the sum of all debit card

and credit card payments.

Data Sources:



exchanges

$ A

mo

un

ts i

n B

illi

on

s

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Qtr 1

'05

Qtr 2

'05

Qtr 3

'05

Qtr 4

'05

Qtr 1

'06

Qtr 2

'06

Qtr 3

'06

Qtr 4

'06

Qtr 1

'07

Qtr 2

'07

Qtr 3

'07

Qtr 4

'07

Qtr 1

'08

Qtr 2

'08

Qtr 3

'08

Qtr 4

'08

Qtr 1

‘09

$4,000

$ Amounts of ImagesReceived by Paying

Institution

Key Messages: More than 18,500 paying institution routing transit numbers are receiving images for...

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