Check 21 Clearing Law Prompts New Product
Dynamic Interface Systems Corp. here and Impact Strategy Group have unveiled a service, ScanOnce, to facilitate check clearing for the Check 21 law.
DISC, a supplier of loan servicing software for PCs, and Impact Strategy, a developer of electronic financial systems, said that ScanOnce is the only existing direct interface between a PC-based loan servicing system and the Federal Reserve banking system.
With the software, they said that any lender can launch automated clearinghouse transactions, sending them into the FedNet system with nothing much more elaborate than a scanner leased for $20 per month.
The companies said it saves money for the mortgage companies, loan servicers and other financial institutions that use DISC's loan servicing software, because checks cost less to process electronically than manually.
Although the largest banks have been processing checks electronically for years, the Check Clearing for the 21st Century Act allows banks to process checks electronically and stop returning paper checks to account holders.
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