Handling Image Exchange Exceptions

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How can exception payments be eliminated before processing?

Much less time is needed to process image exchange receipts so you can rearrange the process flow to move exceptions payment identification prior to entering image exchange receive work into your payment processing system. For work you capture, especially when you use remote capture to continuously provide work to your central processes, the time these items previously spent waiting in the branch to be processed can be used to do exceptions identification.
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What evaluations can be done before processing the payments?

Exceptions processing that is currently done after posting can be done prior to processing. This can include:

• Positive pay evaluations
• Checking for stops and closed or blocked accounts
• Duplicate payment detection
• Automated fraud evaluations
• Image integrity evaluations to ensure you don’t breach privacy regulations, and others.

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Why should I evaluate payments to identify the exceptions prior to processing?

Identifying exception items prior to processing prevents them from being posted to customer accounts, providing more accurate account data, which reduces service inquiries from customers. It also allows you to return these items the same day you pay for them, eliminating use of holdover suspense accounts and the risk of loss from these payments. This also eliminates the time required to remove exception items from capture and downstream systems.
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How can I continue to meet my processing deadlines with this new process?

Several factors determine when you can move exceptions processing to the front of your payment processing. These include:

• The time you receive the payments for processing. The closer the receipt time is to processing deadlines the less likely you can move exception processing forward.
• What exception processes are automated. Automated processing greatly reduces the time needed for these processing steps.
• The ability to eliminate many manual reviews in your current exception item processes through new OCR tools and well defined business rules. The manual review is what takes most of the processing time.

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Many of my image exchange files don’t have good MICR data for all items. How can I identify exception items without full MICR data?

You cannot, which is why one of the modules within ELO completes the MICR data using OCR processes. Then all the items can go through exceptions processing before entering your payments processing system.
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Many of my exception processes are done for selected accounts or items. Will I have to evaluate all my payments through the exception processes with this approach?

No. ELO processing is governed by a set of business rules so you define which accounts and items get evaluated by which processes. This allows you to continue to offer different service levels as you do now and charge fees to those customers who want these services. At the same time you reduce the cost associated with providing these services.
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Can I return items the day I receive them? I haven’t even paid for them yet.

Yes you can. This means you pay for the item at the same time you are paid for its return, eliminating the financial risk associated with the exception items, and freeing the capital currently tied up in suspense accounts earning nothing.
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Will this work with my image exchange and capture systems?

CONIX's ELO system is designed to be integrated with any image exchange or payments system. Therefore we expect ELO to work with your current systems.
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I would have to invest in all new processes to do this. Is there enough value for that level of investment?

ELO provides all the systems you need as modules. You add those exception processing systems needed to replace work you currently perform manually now. ELO will be integrated to the systems you have already so you continue to use them.

ELO modules include duplicate detection, item integrity evaluation, an image enabled automated returns and adjustments system, suspect review workstations and fraud identification systems such as positive pay. So there is not a significant additional investment in systems required. The investment for ELO is one we can prove to you will pay for itself in less than one year (link to contact us from bottom of the page).
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Won’t identifying exceptions prior to processing and posting reduce my fee income?

No. There is no impact on NSF or overdraft charges since these exceptions can only be identified through posting. Stop and related charges are not affected since you are still providing these services, just providing them in a slightly different way.

There are new revenue opportunities created. You can:

• Offer more accurate intraday totals to accounts for a fee
• Provide different service quality levels to different account groups, charging a fee to provide the higher service levels
• Reduce customer turnover with more accurate account posting, one of the fastest ways to increase the growth of your bank in general and at essentially no additional cost.

In addition to these new revenue opportunities you eliminate the risk of loss from these exceptions since you can return them the day received.
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For more information on how ELO can protect your customers from errors and fraud in their accounts, fill out the contact sheet below, then press the Submit button.