MINNEAPOLIS--(BUSINESS WIRE)--Oct. 7, 2005--U.S. Bank (NYSE:USB)
is offering a new service for its business banking customers that
automates corrections to their payments processed through the
Automated Clearing House (ACH).
Before this new service, U.S. Bank's business customers were
required to update information on their ACH payments, such as outdated
account, routing/transit and transaction code information. Now, U.S.
Bank's new service will make those changes for business customers.
The new service manages the correction process for Notification of
Change (NOC) information. Called U.S. Bank NOC Manager, changes noted
in the NOC for outdated account, routing/transit, and transaction code
information are automatically made for any future submitted ACH
payments. Building on the standard industry practice for managing
notifications received on converted check items, this service extends
the process to all types of ACH transactions - including payments
initiated via the Web and telephone.
In accordance with industry rules, an NOC is created by the
receiving bank when a received ACH payment contains invalid
information. The NOC is sent to the originating bank so the invalid
information can be corrected before another payment is made. Prior to
the availability of U.S. Bank NOC Manager, the NOC was forwarded to
business banking customers so they could make the corrections in their
U.S. Bank's new, automated NOC capabilities are made available
through its technology relationship with CheckFree Corporation
(Nasdaq:CKFR) to leverage its existing investment in CheckFree's PEP+
ACH processing platform. CheckFree's Alliance Services team designed,
developed and tested the module on-site at U.S. Bank, allowing the
project to benefit from the combined expertise of both organizations
while maintaining high quality control and low total project cost.
"U.S. Bank is the first bank, with the ACH PEP+ to market this
type of service for all ACH payment types," said Nadia Kozak, vice
president and senior ACH product manager for U.S. Bank Treasury
Management Services. "Our ACH business customers can now reduce the
number of NOCs they receive, stay compliant with the ACH rules, and
streamline their back-office processes by eliminating the need to
manage updates to their system."
"For U.S. Bank, CheckFree's solutions facilitate operational
efficiency and compliance in an environment of increasing complexity
and risk. This relationship enables U.S. Bank to be among the first
financial institutions to deliver these enhanced services to their
clients," said Denny Oswalt, senior vice president, Global Banking
within CheckFree Software. "CheckFree seeks to increase the value it
delivers to existing customer investments by evolving its solutions to
address new operational and business issues that are created by
emerging technologies or trends. The relationship with U.S. Bank
clearly accomplishes that objective."
Several of U.S. Bank's Treasury Management customers participated
in the successful pilot program.
Founded in 1981, CheckFree Corporation (Nasdaq:CKFR) provides
financial electronic commerce services and products to organizations
around the world. CheckFree Electronic Commerce solutions enable
thousands of financial services providers and billers to offer their
customers the convenience of receiving and paying their household
bills online or in person through retail outlets. CheckFree Investment
Services provides a broad range of investment management solutions and
outsourced services to thousands of financial services organizations,
which manage more than $1 trillion in assets. CheckFree Software
develops, markets and supports software applications that are used by
financial institutions to process more than two thirds of the 12
billion ACH transactions in the United States. The division also
provides operational risk management, financial messaging, corporate
actions, and regulatory compliance software to more than 1,500
organizations across the globe. Visit CheckFree at checkfreecorp.com.
U.S. Bank is a subsidiary of U.S. Bancorp (NYSE:USB). With $204
billion in assets, U.S. Bancorp is the 6th largest financial holding
company in the United States. The company operates 2,383 banking
offices and 4,877 ATMs in 24 states, and provides a comprehensive line
of banking, brokerage, insurance, investment, mortgage, trust and
payment services products to consumers, businesses and institutions.
U.S. Bancorp is home of the Five Star Service Guarantee in which the
company pays customers if certain key banking benefits and services
are not met. Visit U.S. Bancorp on the web at usbank.com.
CONTACT: U.S. Bank
Amy Frantti, 612-303-0733
SOURCE: U.S. Bank