CKFR Checkfree Corp (MM)

CheckFree Introduces e-Check Bridge, a Solution to Mitigate Risk for Corporate Check Conversion Fraud -- CheckFree Financial Institution Clients Will Be Able To Leverage Positive Pay To Deliver Fraud and Risk Reduction Benefits In Processing Corporate Checks -- ATLANTA and SAN ANTONIO, April 11 /PRNewswire-FirstCall/ -- Payments 2005 Booth # 313 -- CheckFree Software, a division of CheckFree Corporation (NASDAQ:CKFR), today introduced CheckFree e-Check Bridge(TM), a software module that links two industry-leading bank operation solutions, CheckFree PEP+(R) and CheckFree ARP/SMS(TM), to ensure that converted corporate checks do not bypass the positive pay process. By comparing original check information to the electronic transaction, e-Check Bridge mitigates risk and bridges the gap between the Automated Clearing House (ACH) processing platform, check reconcilement and positive pay fraud detection systems in corporate check conversion. The conversion of check-based consumer bill payments into ACH transactions, also referred to as accounts receivable conversion (ARC), has experienced unprecedented growth among all ACH transaction codes. In 2004, 1.25 billion ARC transactions were processed, representing 488 percent annual growth, according to NACHA. While corporate checks are not eligible for conversion under current ACH operating rules, many checks drawn off of corporate accounts are physically similar to consumer bill payment checks. Today, corporate checks are often inadvertently converted, and with transaction volumes continuing to climb, the number of converted corporate checks is projected steadily increase. "One of the reasons why business checks are excluded by ARC rules today is that banks have developed value-added reconcilement and fraud detection services around check processing for their treasury management customers. Positive pay systems in the check environment provide a strong defense against check fraud for corporations that disburse checks to consumers and businesses," said Breffni McGuire, senior analyst in the Global Payments practice at TowerGroup. "However business checks that are electronically converted to ACH transactions may bypass these protections, reducing the benefits of automation and increasing risk exposure for both banks and their corporate customers. A bridge between the ACH and check processing systems resolves the problem for checks that have been inadvertently converted to ACH items and provides a technical resolution should NACHA rules be amended to allow conversion of business checks." "To accommodate check conversion for corporate items, Wachovia needed to deploy a solution that could blend our electronic transactions and paper check processes while maintaining the high level of information, fraud protection, and systems integration our clients expect," said Suzy Yoder, senior vice president of Integrated Disbursements at Wachovia Corporation. "CheckFree's e- Check Bridge software was the right solution to help the bank mitigate risk and meet our clients' demands." Solving The Business-to-Business Check Conversion Challenge CheckFree's expertise in reconciliation and positive pay enabled the company to design a module that easily integrates into financial institutions' systems, and provides integration between CheckFree PEP+ and CheckFree ARP/SMS. This solution blends the ACH and ARP processes and offers the following benefits: - Reducing risk exposure - e-Check Bridge enables financial institutions to tie together Automated Clearing House (ACH) processing platforms with check reconcilement and positive pay fraud detection systems to address industry-wide banking and corporate concerns over corporate check conversion. - Automating positive pay, exception management and reporting - Converting checks to electronic transactions can generate a significant number of exceptions that need to be manually reconciled. With e-Check Bridge, converted transactions are easily identified and automatically matched to the check issue information on file. Suspect items can then be sent to companies for their approval. - Improving reconciliation - With e-Check Bridge, electronic checks are uniquely identified in CheckFree ARP/SMS, enabling the bank to provide companies with an accurate statement of their account status and position. "CheckFree's bank customers needed a comprehensive solution to bridge the original check information with the electronic transaction and positive pay safeguards," said Randy McCoy, EVP of CheckFree Software. "With our reconciliation, risk mitigation and positive pay expertise, we created an end- to-end solution by linking CheckFree PEP+ and CheckFree ARP/SMS. This integrated solution assists financial institutions in reducing operational costs, reducing fraud exposure and creating efficiencies for their corporate customers." About CheckFree ( http://www.checkfreecorp.com/ ) Founded in 1981, CheckFree Corporation provides financial electronic commerce services and products to organizations around the world. CheckFree Electronic Commerce solutions enable thousands of financial services providers and billers to offer their customers the convenience of receiving and paying their household bills online or in person through retail outlets. CheckFree Investment Services provides a broad range of investment management solutions and outsourced services to thousands of financial services organizations, which manage more than $900 billion in assets. CheckFree Software develops, markets and supports software applications that are used by financial institutions to process more than two-thirds of the 10 billion Automated Clearing House transactions in the United States. The division also provides reconciliation, financial messaging, compliance and electronic billing and statement software to thousands of organizations across the globe. Certain of CheckFree's statements in this press release are not purely historical, and as such are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding management's intentions, plans, beliefs, expectations or projections of the future. Forward-looking statements involve risks and uncertainties, including without limitation, the various risks inherent in CheckFree's business, and other risks and uncertainties detailed from time to time in CheckFree's periodic reports filed with the Securities and Exchange Commission, including CheckFree's Annual Report on Form 10-K for the year ended June 30, 2004 (filed September 3, 2004), Form 10-Q for the quarter ended September 30, 2004 (filed November 9, 2004) and Form 10-Q for the quarter ended December 31, 2004 (filed February 8, 2005). One or more of these factors have affected, and could in the future affect CheckFree's business and financial results in future periods, and could cause actual results to differ materially from plans and projections. There can be no assurance that the forward-looking statements made in this press release will prove to be accurate, and issuance of such forward-looking statements should not be regarded as a representation by CheckFree, or any other person, that the objectives and plans of CheckFree will be achieved. All forward-looking statements made in this press release are based on information presently available to management, and CheckFree assumes no obligation to update any forward-looking statements. DATASOURCE: CheckFree Corporation CONTACT: Media, Judy DeRango Wicks, +1-678-375-1595, or , or Investor relations, Tina Moore, +1-678-375-1278, or , both of CheckFree Corporation Web site: http://www.checkfreecorp.com/

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