N.Y. Clearing House Spinoff Buying Electronic Check Presentment Rival

By Marjanovic, Steven | American Banker, August 4, 1999 | Go to article overview

N.Y. Clearing House Spinoff Buying Electronic Check Presentment Rival


Marjanovic, Steven, American Banker


The New York Clearing House Association has taken a small but symbolically important step toward consolidation of payment systems.

Small Value Payments Co., a spinoff of the association, has agreed to acquire a Dallas-based company that has been instrumental in the movement toward automated check clearing.

Both Small Value Payments and the company it is to buy, Payment Solutions Network Inc., have developed electronic check presentment and return-item services aimed at lowering the costs of processing the 65 billion checks written per year in the United States.

A combination of the operations would eliminate a type of redundancy among trade associations and other joint ventures that has become an increasing concern among top bankers.

There are also high hopes that a single entity would eliminate fragmentation and be more effective in pursuit of the elusive goal of electronic check presentment.

"The bottom line is that no one wants to send the same people to two different meetings at two different companies and talk about the same thing," said Henry C. Farrar, senior vice president at the New York Clearing House Association and president and chief operating officer of Small Value Payments Co., known as SVPCo. He noted that electronic cash presentment has been promoted nationally for a decade but accounts for only 3% of volume.

The acquisition is expected to close in September. Financial terms were not disclosed.

SVPCo, which was spun off from the New York Clearing House as a forprofit entity last year, provides a multilateral netting service through which collecting banks electronically transmit check information to paying banks. Paper items follow via lower-cost delivery methods.

Since its spinoff, SVPCo has added 10 institutions, bringing the number of member-owners to 22. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

N.Y. Clearing House Spinoff Buying Electronic Check Presentment Rival
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.