The Rise of the EPO?

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21 November 2013


  • Bob-

    Thank you for your mention of VerifyValid. I would like to make an important clarification to help make sure readers do not become confused. While VerifyValid uses the Internet as a means of delivery, VerifyValid items are by definition not EPOs because they are designed and intended to be printed. VerifyValid checks are created and authorized online by the payor, delivered via an online notification that leads the payee to a check that they can then, by agreement, print and deposit like any other check. Think of a VerifyValid check as a check sent without an envelope or stamp. It is the payor's check, but it is the payee's printer. While we can support a bank's acceptance of the items electronically (via RDC) this characteristic of the VerifyValid service is optional and at the sole discretion of the bank of deposit. We also provide an option whereby the payee can forward the check for deposit electronically to the bank who then prints the item on behalf of the customer so that they can then accept the deposit conventionally. It may sound a little crazy, but this is the way some banks prefer to operate rather than, as you say, challenging the status quo.

    Bob, you have done a great job of outlining the irony of the current legal and regulatory requirements resulting in printing data to paper to create a "check" only to have the information on the paper converted back to data through an imaging process. Like you and many others, I would also love to know what your readers think of the prospect of fully electronic checks.

  • The EPO digital check is a compelling solution that for some reason, the FRB has decided to shelve rather than approve the UCC enabling statue. We have developed an EPO solution for the Title Settlement Industry that will be released next month. The business is compelling, but the enrollment of stakeholders is greatly delayed by the FRB's lack of support.

    Eric Thomson

  • Thanks, Eric. Like Uber, perhaps we need a courageous adopter or two to spur regulators on to action?

  • Tanks for your clarification, Paul. I understand the several deposit method options users of your solution have and hope as banks implement 100% paperless options for clients, the regulators will make reasonable decisions. The path to doing so seems rather straightforward.