The document summarizes changes in the payments landscape, including the introduction of Check 21 and new electronic payment methods like check conversion. Check 21 allows checks to be converted into electronic images and processed as substitute checks. Check conversion involves converting checks into ACH payments at points of purchase or through mail/dropboxes with customer authorization. As paper checks decline, organizations must invest in supporting new electronic payment channels and formats.

1. Scott Shannon Regional Sales Manager U.S. Bank January 9, 2007 The Changing Payments Landscape

3. Changing Environment

8. Check Conversion and Check 21

20. Check Conversion vs. Image Exchange Yes Yes Stop Payments allowed? None Biller obtains written authorization (POP) or informs consumer of intent to convert (ARC) Authorization required? All checks drawn on U.S. bank in U.S. dollars Consumer checks drawn on U.S. banks in U.S. dollars Eligible Items? Paper check is imaged and later converted into substitute check Paper check converted to ACH electronic payment What is it? Image Exchange Check Conversion