Check 21 Milestone: National Networks Connect
NEW YORK-In an event that echoes America's transcontinental railroad hook-up, the two dominant national electronic check networks, Endpoint Exchange and SVPCO have agreed to exchange electronic checks and images.
The deal, which extends to 4,000 banks and credit unions and more than 10,000 endpoints, will provide financial institution participants with a new opportunity to streamline their check processing and accelerate adoption of electronic image exchange, given the status of legal tender under the 2003 law known as Check 21.
Endpoint Exchange is a wholly owned subsidiary of Metavante, which is in the process of being spun off by Marshall & Ilsley banking company. SVPCO is a subsidiary of The Clearing House Payments Co., which is owned by JP Morgan Chase, Citibank, Bank of America, Wachovia and about 20 other big banks. The two exchanges are not only competing for the new electronic check imaging, but for the vast volume of payments processing that the Federal Reserve is in the process of privatizing.
The other major electronic clearing networks are Viewpoint Exchange, a network owned by separately by JP Morgan and BofA, SunTrust Banks, U.S. Bancorp and IBM Corp., and the Fiserv Clearing Network.
Freedom First FCU Creates Memorial Fund
SALEM, Va.-Freedom First FCU has formed a Virginia Tech Memorial Fund to support the recovery from last Monday's tragic events when 32 students at nearby Virginia Tech University were shot dead. Freedom First officials said all proceeds will be directed towards the Hokie Spirit Memorial Fund.
Virginia Tech has established the Hokie Spirit Memorial Fund to aid in the healing process and generate financial support. The fund will be used to cover expenses including but not limited to: grief counseling, memorials, communication expenses, comfort expenses, incidental needs.
The Virginia CU League CEO Rick Pillow said the league will make a contribution to the fund and is already in contact with a variety of foundations across the country that are interested in supporting the effort, as well.
CULS Eyes Indirect Auto Market
ATLANTA-The Credit Union Loan Source, a CUSO owned by area credit unions has signed with Quantum Auto Group LLC to connect its partners with 1,000 dealerships throughout the East Coast.
The deal, marking Quantum Auto's entry into the credit union market, will make indirect loans originated through the Melville, N.Y.-based company available to the CUSO's credit union participants.
They include Delta Employees CU, Georgia Telco CU, Atlanta Postal CU and Georgia CU Services Corp. Quantum Auto has originated and sold almost $500 million in auto loans or retail installment contracts.
SELCO Offers Instant Card Issuing
EUGENE, Ore.-SELCO Community CU has implemented the instant card issuing service offered by Card Express International, of Irvine, Calif.
SELCO was able to use the system during the holiday season when it issued holiday gift cards to members.
The company, known as CardEx, is working to expand its credit union market, following last fall's deal with Pemco Technology to provide eight credit unions with customized Visa prepaid debit cards.
SSFCU Ads ScoreCard Rewards
TAMPA, Fla.-Suncoast Schools FCU has signed a three-year agreement with Fidelity National Information Services to offer ScoreCard Rewards on debit cards.
The $5.8-billion credit union has been offering ScoreCard Rewards on its credit card purchases for two years. Suncoast Schools has 355,000 credit and debit card accounts.
AEFCU Joins Billion-Dollar Club
HARTFORD, Ct.-American Eagle FCU, the 72-year-old credit union founded to serve employees of Pratt & Whitney Aircraft, said yesterday it has hit the $1 billion mark in assets.
The milestone comes after a year of double-digit growth in both shares (17%) and loans (15%). The credit union, the largest community charter in Connecticut, now serves residents of Hartford, Middlesex and Tolland counties in Connecticut.
Corrections & Clarifications
An item in the April 16 issue on Enterprise Rent-A-Car's 50th anniversary incorrectly featured a Biloxi, Miss. dateline. The correct dateline is St. Louis.
