Study Shows ARC and Check 21 Work Best in Concert

Recently a series of simulation analyses was conducted by Meta Software to measure the benefits of ARC to a large credit card processor. The objective of the analysis was to quantify the financial and operational benefits of different implementation approaches to enterprise-wide ARC rollouts, applying the Clearingworks solution from US Dataworks.

This study documents that remittance processors can realize savings of up to 40% of operating budget if they implement a solution that takes full advantage of the potential capabilities of ARC and Check 21 applied in concert. While most of this benefit can be attributed to lower clearing fees and improved float, a joint ARC/Check 21 solution-the "next wave" of ARC implementation - generates substantial operational benefits through reduced equipment and staff requirements. Such additional savings, however, require a redefined workflow that eliminates the physical handling of a payment item once it has been image captured either in mail opening or on the first pass. The Check 21 switch will not turn "on" immediately come October 28 - image exchange may require several years to fully gain traction - however, the study found that "processors that wait for widespread Check 21 adoption before implementing these new workflows will miss out on significant near term benefit, and will be at a competitive disadvantage to those who quickly exploit the joint possibilities of both new initiatives."

A complimentary Web download of the white paper entitled "Maximizing the Benefits of ARC in a post-Check 21 World"is available from Meta Software (www.metasoftware.com) and US Dataworks (www.usdataworks.com).