Key Messages:

1
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 8.7 billion check payments totaling
  11.3 trillion per year have already moved from
  the traditional paper-based clearing process to
  improved image-based processes.
• On an average day during May 2007, more than
  6,300 institutions received 22.8 million check
  images for posting. These total 5.7 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.

2
Highlights Chart reflects volume received by
DFIs for payment from other DFIs or an
intermediary. Volume grew by 95 in 6 months
November 06 (11.7) to May 07 (22.8). Average
daily image volume grew from 3.6 to 22.8 million
or by 526 from May 2006 to May 2007. May volume
annualized is 5.7 billion images received per
year.
Average of Images Received /Day
22.8 Million Images / Day
Items in Millions
11.7 Million Images / Day
Data Sources Transactions settled through the
Federal Reserve, NCHA and SVPCO with no duplicate
counting
3
Highlights Chart reflects the number of paying
bank R/Ts receiving check images. Many R/Ts
through May 2007 were for individual
institutions. The number of receiving R/Ts grew
between May 06 May 07 from 3,994 to 9,146 or
129. 9,146 routing transit numbers represents
more than 6,300 institutions or approximately 38
of all U. S. institutions are receiving check
images.
Number of R/Ts Receiving Images
Image Receiving R/Ts 9,146
of Receiving R/Ts
Data Sources Transactions settled through the
Federal Reserve, NCHA and SVPCO with no duplicate
counting
4
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 181.1 to 760.6 million / mo or by 320 with
66 of the volume cleared by image in May
2007. The annualized May 07 volume (8.7 billion
items/yr.) is approximately 24 of total check
volume cleared.
of Images Substitute Checks Forward
Collection Only
Items in Millions
Data Sources Transactions settled through the
Federal Reserve, NCHA and SVPCO with no duplicate
counting
5
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 424 to 984 billion / mo or by
132. Annualized May 07 dollar amount 11.3
trillion/yr. 11.3 trillion is 28 of the total
dollars cleared via check and is almost eight
times the sum of all debit card and credit card
payments.
Amounts of Images Substitute Checks Forward
Collection Only
Amounts in Billions
Data Sources Transactions settled through the
Federal Reserve, NCHA and SVPCO with no duplicate
counting