Does this get close to LML's patent protection?
>>>Business Editors/High Tech Writers
LOS ANGELES--(BUSINESS WIRE)--April 10, 2000--Thomson Financial Publishing (TFP), Checkfree, US Dataworks and Aid Association for Lutherans (AAL) have entered into discussions about collectively developing a software package to facilitate the conversion of "accounts receivable" checks to ACH (automated clearinghouse) debits. The contract negotiations, which will define respective roles and responsibilities, were announced at the NACHA 2000 Payments conference.
TFP, CheckFree and USD intend to work jointly on the design of the package that will combine their respective software. TFP will bring its EPICWare(TM) filter, a data solution that ensures straight-through processing of ACH transactions by validating and modifying, as necessary, American Bankers Association (ABA) routing and transit numbers and account number structures. USD will re-engineer Remitworks(TM), its electronic debit software, and Returnworks, its ACH return item system, which interface with CheckFree's PEP+ ACH origination software. The yet-to-be-named product to be provided to AAL will efficiently truncate checks from the lockbox operations to ACH instructions.
AAL formally joined NACHA's PPD Accounts Receivable Truncated Check Debit Entries pilot program. This one-year pilot test allows selected originators to truncate checks received through the U.S. mail as payment for goods or services and convert these checks to ACH debit entries. Participants in this pilot, such as AAL, were required to enter into an agreement with NACHA and provide statistical data on their experiences with these transactions. Among the measurements to be tracked are the number of items that are truncated and AAL's success in realizing straight-through-processing.
"AAL expects its involvement in the pilot to be very successful, in part because of its use of this new software," said Lisa Johnston, senior manager, AAL Cash Management Services. "AAL is committed to its customers. Lockbox truncation will improve the efficiency of our lockbox and lower operating costs. This result will help AAL to continue offering competitive member services and benefits."
If proven successful, this software offering will be marketed to organizations deploying a lockbox truncation business initiative. Lockbox truncation is an efficient mechanism for reducing collection time, improving customer service, increasing cash flows, lowering costs due to less human involvement, and creating an opportunity for earlier fraud detection.
Glenn Gottfried, TFP's general manager, stated, "The software will leverage EPICWare's ability to address administrative errors before they occur, ensuring that a check's MICR is converted to ACH." EPICWare compares the check's routing and account numbers against a data file, updated and maintained by TFP.
"Approximately 18 billion checks are written each year in remittance of invoices. This software will be an effective tool to accurately convert and settle these items as well as provide extensive management reports." said Terry Stepanik, USD's president.
Quinn Thomas, vice president of sales for CheckFree, added, "Because this client/server software is fully integrated with CheckFree's PEP+ ACH processing system, CheckFree's customers are in a unique position to take full advantage of this new business opportunity. AAL is a valued client of CheckFree. We're confident this new software will prove to be necessary for making lockbox truncations successful and profitable." |
