Key Messages:

1. Checkimage Collaborative Communications Work Group • Key Messages: • Paper checks are being transitioned to electronic images of checks at a pace that is unprecedented. Check images are currently collected in two forms, as substitute checks and as check images. • Substitute checks assist in evolving traditional paper check clearing to image-based clearing. As a precursor to full check image exchange, the number of substitute checks is a positive indication of the acceptance of image exchange. • Just 28 months after the effective date of Check 21, 6.7 billion check payments totaling $8.8 trillion per year have already moved from the traditional paper-based clearing process to improved image-based processes. Based on the 2004 Federal Reserve Payments Study, that amount is much greater than the sum of all debit card payments ($.6 trillion) and all credit card payments ($1.7 trillion). • On an average day during February 2007, more than 6,400 institutions received 16.4 million check images for posting. These total 4.1 billion checks per year. • This Checkimage Collaborative industry image clearing data reflects transactions settled through the Federal Reserve, NCHA and SVPCO. When the same payments were cleared through two or more of these organizations, those payments were counted only once.

2. # of Images & Substitute Checks Forward Collection Only Highlights: All checks were imaged before reconversion to substitute checks. Chart reflects volume received by DFIs for payment from other DFIs or an intermediary. Across the 13 month period Image-based clearing volume grew from 81.4 to 505.2 million / mo or by 521% with 62% of the volume cleared by image in February 2007. The annualized Feb ‘07 volume = 6.7 billion items/yr. is approximately 19% of total check volume cleared. 500 400 300 # Items in Millions 200 100 Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting 0 Feb-07 (only 19 Days) Jul-06 Apr-06 Jan-07 Oct-06 Feb-06 Mar-06 Jun-06 May-06 Aug-06 Nov-06 Sep-06 Dec-06

3. Highlights: Chart reflects the number of paying bank R/Ts receiving check images. Most R/Ts through February 2007 were for individual institutions. The number of receiving R/Ts grew between Feb ’06 & Feb ‘07 from 3,160 to 7,500 or 137%. 7,500 routing transit numbers represent more than 5,900 institutions.  This means that approximately 36% of all U. S. institutions are receiving check images. Number of R/Ts Receiving Image Files 7,000 6,000 Image Receiving R/Ts 7,500 5,000 4,000 # of Receiving R/Ts 3,000 2,000 1,000 Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting 0 Jul-06 Jan-07 Apr-06 Oct-06 Feb-06 Mar-06 May-06 Jun-06 Feb-07 Aug-06 Nov-06 Dec-06 Sep-06

4. Highlights: Chart reflects volume received by DFIs for payment from other DFIs or an intermediary. Volume grew by 128% in 5 months – September ‘06 (7.2) to February ’07 (16.4). Average daily image volume grew from 1.19 to 16.4 million or by 1,278% from Feb 2006 to Feb 2007. 16.0 Average # of Images /Day 14.0 16.4 Million Image / Day 12.0 16.2 Million Image / Day 10.0 # Items in Millions 8.0 6.0 4.0 7.2 Million Image / Day 7.6 Million Image / Day Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting 2.0 0.0 Jul-06 Apr-06 Jan-07 Feb-06 Oct-06 Mar-06 Jun-06 Aug-06 Feb-07 May-06 Nov-06 Sep-06 Dec-06