Check Image Collaborative Communications Work Group • Key Messages: • Paper checks are being transitioned to electronic images of checks at a pace that is unprecedented. Check images are currently collected in two forms, as substitute checks and as check images. • Substitute checks assist in evolving traditional paper check clearing to image-based clearing. As a precursor to full check image exchange, the number of substitute checks is a positive indication of the acceptance of image exchange. • Approximately 9.8 billion annual check payments totaling $14 trillion per year have already moved from the traditional paper-based clearing process to improved image-based processes. • On an average day during July 2007, almost 6,900 institutions received 26.4 million check images for posting. These total 6.7 billion checks per year. • This Federal Reserve / ECCHO industry image clearing data reflects transactions settled through the Federal Reserve, NCHA and SVPCO. When the same payments were cleared through two or more of these organizations, those payments were counted only once.
Average # of Images Received /Day Highlights: Chart reflects volume received by DFIs for payment from other DFIs or an intermediary. Volume grew by 74% in 6 months – January ‘07 (15.2) to July ’07 (26.4). Average daily image volume grew from 4.8 to 26.4 million or by 451% from July 2006 to July 2007. July 2007 volume annualized is 6.7 billion images received per year. 26.0 24.0 22.0 26.4 Million Images / Day 20.0 18.0 16.0 14.0 # Items in Millions 12.0 10.0 15.2 Million Images / Day 8.0 6.0 Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting 4.0 2.0 0.0 Jul-07 Jul-06 Jan-07 Apr-07 Oct-06 Feb-07 Aug-06 Mar-07 May-07 Jun-07 Nov-06 Sep-06 Dec-06
Highlights: Chart reflects the number of paying bank R/Ts receiving check images. Many R/Ts through July 2007 were for individual institutions. The number of receiving R/Ts grew between July ’06 & July ‘07 from 4,611 to 10,111 or 119%. 10,111 routing transit numbers represents almost 6,900 institutions or approximately 42% of all U. S. institutions are receiving check images. Number of R/Ts Receiving Images 10,000 8,000 Image Receiving R/Ts 10,111 6,000 # of Receiving R/Ts 4,000 2,000 Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting 0 Jul-06 Jul-07 Jan-07 Apr-07 Oct-06 Feb-07 Mar-07 Jun-07 Aug-06 May-07 Nov-06 Sep-06 Dec-06
Highlights: All checks were imaged before reconversion to substitute checks. Chart reflects volume received by DFIs for payment from other DFIs or an intermediary. Across the 13 month period Image-based clearing volume grew from 216.8 to 816.8 million / mo or by 257% with 68% of the volume cleared by image in July 2007. The annualized July ‘07 volume (9.8 billion items/yr.) is approximately 27% of total check volume cleared. # of Images & Substitute Checks Forward Collection Only 800 700 600 500 Images # Items in Millions 400 300 200 Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting 100 Substitute Checks 0 Jul-07 Jul-06 Jan-07 Apr-07 Oct-06 Jun-07 Aug-06 Feb-07 Mar-07 May-07 Nov-06 Dec-06 Sep-06
Highlights: All checks were imaged before reconversion to substitute checks. Chart reflects checks received by DFIs for payment from other DFIs or an intermediary. The dollar amount grew from $471 to $1,133 billion / mo or by 141%. Annualized July ‘07 dollar amount = $13.6 trillion/yr. $13.6 trillion is 34% of the total dollars cleared via check and is more than five times the sum of all debit card and credit card payments. $1,200 $ Amounts of Images & Substitute Checks Forward Collection Only $1,000 $800 $ Amounts in Billions $600 $400 Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting $200 $0 Jul-06 Jul-07 Jan-07 Apr-07 Oct-06 Feb-07 Jun-07 Mar-07 May-07 Aug-06 Nov-06 Sep-06 Dec-06