The two companies have been partners for several years and in 2012 they have launched a new platform for the processing and clearing of cheque-to-card remote deposits, dubbed Deposit Choice. Chexar uses Clear Payments’ technology today as part of its services including imaging technologies, funds settlement engines and mobile enhancement services.
Recent studies estimate that the portion of the nation’s population that choose to conduct their financial transactions in a prepaid manner, outside the traditional deposit account, has grown to over 100 million people. According to data published by the Federal Reserve Bank, checks are written each year totaling over USD 26 trillion. While overall check volume is declining at a rate of 7 percent a year, checks written to consumers, more than USD 5.7 trillion a year, are declining at a rate of less than 1 percent a year. In 2011, consumers have paid over USD 40 billion in fees to convert checks into “good funds” and recent legislation such as the Dodd-Frank Act and the Durbin Amendment are causing the industry to re-think the process.
Chexar Networks provides services to US underbanked consumers, including cheque cashing, money transfers, bill payment, money orders, mobile top-ups and prepaid cards. Clear Payments provides payment processing services as well as e-commerce solutions, credit building, credit reporting and other.
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