Key Messages:

1. Check Image 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. • Approximately 8.7 billion check payments totaling $11.3 trillion per year have already moved from the traditional paper-based clearing process to improved image-based processes. • On an average day during May 2007, more than 6,300 institutions received 22.8 million check images for posting. These total 5.7 billion checks per year. • This Federal Reserve / ECCHO 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. Highlights: Chart reflects volume received by DFIs for payment from other DFIs or an intermediary. Volume grew by 95% in 6 months – November ‘06 (11.7) to May ’07 (22.8). Average daily image volume grew from 3.6 to 22.8 million or by 526% from May 2006 to May 2007. May volume annualized is 5.7 billion images received per year. Average # of Images Received /Day 22.0 20.0 18.0 22.8 Million Images / Day 16.0 14.0 12.0 # Items in Millions 10.0 8.0 11.7 Million Images / Day 6.0 4.0 Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting 2.0 0.0 Jul-06 Jan-07 Apr-07 Oct-06 May-06 Jun-06 Aug-06 Feb-07 Mar-07 May-07 Nov-06 Sep-06 Dec-06

3. Highlights: Chart reflects the number of paying bank R/Ts receiving check images. Many R/Ts through May 2007 were for individual institutions. The number of receiving R/Ts grew between May ’06 & May ‘07 from 3,994 to 9,146 or 129%. 9,146 routing transit numbers represents more than 6,300 institutions or approximately 38% of all U. S. institutions are receiving check images. Number of R/Ts Receiving Images 9,000 8,000 7,000 Image Receiving R/Ts 9,146 6,000 5,000 # of Receiving R/Ts 4,000 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-07 Oct-06 May-06 Jun-06 Aug-06 Feb-07 Mar-07 May-07 Nov-06 Sep-06 Dec-06

4. 800 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 181.1 to 760.6 million / mo or by 320% with 66% of the volume cleared by image in May 2007. The annualized May ‘07 volume (8.7 billion items/yr.) is approximately 24% of total check volume cleared. # of Images & Substitute Checks Forward Collection Only 700 600 500 # Items in Millions 400 300 200 100 Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting 0 Jul-06 Jan-07 Apr-07 Oct-06 Jun-06 May-06 Mar-07 Feb-07 May-07 Aug-06 Nov-06 Sep-06 Dec-06

5. Highlights: All checks were imaged before reconversion to substitute checks. Chart reflects checks received by DFIs for payment from other DFIs or an intermediary. The dollar amount grew from $424 to $984 billion / mo or by 132%. Annualized May ‘07 dollar amount = $11.3 trillion/yr. $11.3 trillion is 28% of the total dollars cleared via check and is almost eight times the sum of all debit card and credit card payments. $1,000 $ Amounts of Images & Substitute Checks Forward Collection Only $900 $800 $700 $600 $ Amounts in Billions $500 $400 $300 $200 Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting $100 $0 Jul-06 Jan-07 Apr-07 Oct-06 Mar-07 May-06 Jun-06 Aug-06 Feb-07 May-07 Nov-06 Sep-06 Dec-06