|(COMTEX) B: LML and CheckFree Partner to Deliver End-to-End Check Conversion Solution|
for Lockbox Partnership Will Allow Financial Institutions to Expand Their ACH
Operations To Deliver Suite of Check Conversion Services With The Simplicity Of
a Single Provider
ATLANTA and VANCOUVER, British Columbia, Dec 11, 2002 /PRNewswire-FirstCall via
COMTEX/ -- CheckFree Corporation (Nasdaq: CKFR) and LML Payment Systems Inc.
(Nasdaq: LMLP) today announced a partnership through which LML will provide key
technology for CheckFree's ARC check conversion strategy.
LML Payments is an established leader in services for point-of-sale (POS) check
conversion and also holds strategic patents related to check electronification.
Through this alliance, LML Payments will provide the tools required to
efficiently convert the MICR check data into a format that can be used by the
ACH. By integrating LML's patented technology into its PEP+ platform, CheckFree
will offer banks and their large remittance customers a suite of solutions
tailored to meet the high demands of a successful lockbox check conversion
implementation. Those financial institutions that view check conversion as a
natural extension of their ACH strategies can now access software and services
as well as related professional and customer service from a single source.
The most recent ACH data indicates that over 8 billion payments were processed
last year on the network. Industry sources believe that the number of paper
payments sent to remittance lockboxes last year also exceeded 8 billion
payments. As check conversion becomes a reality in the remittance- processing
environment, the number of electronic ACH items has the potential to nearly
"We believe that there is enormous potential for this partnership with
CheckFree, which has been recognized as the standard for ACH processing
solutions for well over 25 years," said Patrick H. Gaines, president and CEO of
LML Payment Systems. "With the advancements in technology and regulatory
oversight, the migration of more payments from paper checks to ACH items holds
many benefits for large remittance operations. Banks will be looking to their
own ACH operations for not only the capabilities but also the capacity to tackle
the needs of their largest and most strategic corporate relationships."
"LML Payment Systems will complement our own efforts to offer financial
institutions a single source for check conversion software, processes and
service. Additionally, both companies share comparable development environments,
which will enable us to quickly respond to the growing demand for ARC
solutions," said Denny Oswalt, senior vice president and general manager of
CheckFree's ACH Business Unit. "Not only is LML a leader in technology that
makes the electronification of checks a reality, but they also have a proven
track record for supporting high volumes combined with high quality."
CheckFree's new product will offer capabilities that parties are looking to the
ACH solution to provide, including:
* Highly successful MICR Parsing and decision-based controls to determine
which items are to be converted.
* Integration with third party databases to ensure viability of converted
items across a variety of architectures and networks.
* Scalability for the anticipated growth in ACH volumes at banks, which
leverage this new service opportunity.
* Ability to leverage existing investments in technology by utilizing the
same platform currently used by remittance solutions and PEP+.
* Minimal impact to current processes employed by remittance operations
at the bank and corporate banking customers.
* Increased visibility into the ACH processes to facilitate the large
demand created by retail customers.
* Consolidated management controls and reporting for converted items. By
offering check conversion services as part of existing ACH operations,
financial institutions can manage check conversion exceptions with the
same processes used for other ACH transactions.
* Customer support and implementation services will be provided by
CheckFree's highly knowledgeable staff.
About LML Payment Systems Inc. (www.lmlpayment.com )
LML (Nasdaq: LMLP), through its subsidiary LML Payment Systems Corp., is a
financial payment processor providing check processing solutions including
electronic check authorization, electronic check conversion (ECC) and primary
and secondary check collection including electronic check re-presentment (RCK)
to national, regional and local retailers. We also provide selective routing of
debit, credit and EBT transactions to third party processors and banks for
authorization and settlement. The Corporation's intellectual property estate,
owned by subsidiary LML Patent Corp, includes U.S. Patent No. 6,354,491, No.
6,283,366, No. 6,164,528 and No. 5,484,988 all of which relate to electronic
check processing methods and systems.
About CheckFree (www.checkfreecorp.com )
CheckFree is the leading provider of financial electronic commerce services and
products. Founded in 1981 and celebrating its 22nd year in e-commerce, CheckFree
is comprised of three divisions: Electronic Commerce, Software, and Investment
Services. CheckFree launched the first fully integrated electronic billing and
payment solution in 1997. In the quarter ended September 30, 2002, more than
seven million consumers initiated online payments through services offered by
CheckFree's Electronic Commerce division. The company has multi-year contracts
with 265 of the nation's top billers to provide online billing and payment
through 657 financial services organizations, including banks, brokerage firms,
Internet portals and content sites and personal financial management (PFM)
software. CheckFree Investment Services provides a broad range of investment
management services to thousands of financial institutions nationwide. The
division's clients manage about 1.2 million portfolios totaling more than $500
billion in assets.
CheckFree's Software division provides solutions through three operating units:
CheckFree ACH Solutions, CheckFree Financial and Compliance Solutions (CFACS),
and CheckFree i-Solutions. CheckFree ACH Solutions provides software and
services that are used to process more than two-thirds of the nation's eight
billion Automated Clearing House payments, while CFACS provides reconciliation
and compliance software and services to more than 400 organizations in the
banking, brokerage, utility, retail, insurance and credit card industries, among
others. CheckFree i-Solutions is the leading provider of e-billing and
e-statement software and services for both business-to- consumer and
business-to-business applications, with more billers as clients than all of its
competitors have combined.
Certain of CheckFree Corporation's (Company'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 the Company's business, and other risks and uncertainties detailed
from time to time in the Company's periodic reports filed with the Securities
and Exchange Commission, including the Company's Form 10-K for the year ended
June 30, 2002 (filed September 26, 2002) and Form 10-Q for the quarter ended
September 30, 2002 (filed November 15, 2002). One or more of these factors have
affected, and could in the future affect, the Company'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 document will prove to be accurate, and issuance of such
forward-looking statements should not be regarded as a representation by the
Company, or any other person, that the objectives and plans of the Company will
be achieved. All forward-looking statements made in this press release are based
on information presently available to management, and the Company assumes no
obligation to update any forward-looking statements.
LML Safe Harbour statement:
"Statements contained in this news release, which are not historical facts are
forward-looking statements, subject to uncertainties and risks. For a discussion
of the risks associated with LML's business, please see the documents filed by
LML with the SEC. "
SOURCE CheckFree Corporation
CONTACT: media, Judy DeRango Wicks, +1-678-375-1595, or
email@example.com, or investors, Tina Moore, +1-678-375-1
firstname.lastname@example.org , both of CheckFree; or LML Payment Syst
ms Inc., Investor
/Company News On-Call: prnewswire.com
Copyright (C) 2002 PR Newswire. All rights reserved.
INDUSTRY KEYWORD: FIN
SUBJECT CODE: JVN
*** end of story ***