CheckFree and Hyland Collaborate to Fight Check Fraud

Check fraud is at an all-time high with losses to financial institutions in the millions of dollars. In response, CheckFree Software (www.checkfree.com) and Hyland (www.onbase.com), developer of OnBase enterprise content management software, have developed a solution combining payee positive pay processing with imaging and workflow capabilities.

This combined solution includes payee capture methods and image-enabled exception management from Hyland Software, coupled with CheckFree Software's integrated, real-time Payee Verification and reconciliation platform.

"The societal costs of check fraud and counterfeiting in the U.S. reach well over $10 billion a year-a conservative estimate," said Maggie Scarborough, research manager, Banking Practice at Financial Insights. "Banks have no choice - they must be more proactive in assisting customers with check fraud by providing enhanced risk mitigation solutions, yet neither banks nor companies want to reinvent infrastructure."

Payee verification matches payee line information from an image to the information on the issue file. If a mismatch or potential fraudulent item is detected, this item, along with other positive pay exceptions, will be forwarded to corporate clients for evaluation and a payment decision. The Exceptions Management module from Hyland leverages CheckFree's Payee Verification solution to manage payee mismatches, as well as all other exception types. The payee matching process has been completely integrated with all ARP/SMS modules including positive pay, reconciliation and teller positive pay, which provides value through fraud detection services to corporate clients and without making substantial system integration changes.

"CheckFree continually looks to help its banking customers improve service levels, address corporate market needs, strengthen relationships, streamline operations and minimize operational and financial risk for their clients," said Randy McCoy, executive VP and general manager, CheckFree Software.