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ECCHO (Electronic Check Clearing House Organization) is a not-for-profit, mutual benefit, national clearinghouse that is 100 percent owned by its member institutions. Any depository financial institution, regardless of size, is eligible for membership in ECCHO. ECCHO was created in 1990 by banks as a cooperative venture to encourage the implementation of electronic check presentment (ECP). During 2004, ECCHO member banks used ECP in the exchange of approximately 2.5 billion transactions totaling $4.0 trillion.
ECCHO’s primary activities can be divided among three functions: 1) rules development and maintenance, 2) industry education and 3) industry advocacy.
Rules – ECCHO is recognized by many organizations across the U.S. as the national provider of ECP and image exchange rules. (A listing of the names of these organizations is included at the end of this document). Since 1990 ECCHO has been actively involved in the development of rules using electronics to facilitate a more efficient check payment system. Existing paper check law includes large volumes of statutory, regulatory and case law to govern the exchange of paper checks. There is however no law to govern the exchange of check images. Without ECCHO’s rules, institutions exchanging images would assume an indeterminate amount of risk. ECCHO’s claring house rules address this deficiency in check law by providing a common, multilateral agreement among the members. Institutions that are covered by ECCHO’s clearing house rules hold approximately 60% of the total U.S. deposits.
The research and development associated with these rules is primarily under the purview of the ECCHO Operations Committee. Within the Operations Committee are many of the industry’s most knowledgeable bankers in check electronification. ECCHO provides the forum for ongoing analysis of bank impacts and opportunities. This input provides the detailed subject knowledge used in the rules making process. This extensive rules set is vender independent and addresses many exchange scenarios including those created by the Check 21 Act.
Education - ECCHO’s second primary focus is an educational function. The ECCHO staff provides check electronification education through various forums. Since 1997 ECCHO has co-sponsored, with BAI (Banking Administration Institute), the National Electronic Check and Image Exchange Conference that is devoted to the application of technology to improve the efficiency of the check payment system. Many visitors to the ECCHO website (www.eccho.org) find a wealth of information about Check 21 and image exchange. Additionally, the ECCHO staff frequently presents at many other conferences. ECCHO also provides educational sessions, as needed, for interested individuals, bankers, venders, etc.
Industry Advocacy - ECCHO’s third primary focus is its industry advocacy function. Since early in 2000, ECCHO has worked very closely with the Federal Reserve to represent the industry’s interest in developing and modifying the Check 21 Act. Check 21 uses image technology to promote check truncation. The Fed, under cover letter from Chairman Greenspan, delivered its proposed legislation to the US Congress in December 2001. ECCHO worked co-operatively with many industry representatives to refine the proposal and to support the Act in the U.S. House and Senate. In this effort ECCHO coordinated sixty organizations in the creation of a common position and joint recommendations to the House and Senate. ECCHO representatives testified before the House subcommittee hearings on the Act and participated in the presidential signing ceremony. (Additional information about Check 21 can be found on the ECCHO website (www.eccho.org).
During 2004, ECCHO coordinated the industry group that developed and signed a joint comment letter on both the proposed changes in Regulation CC and Regulation J. Finally, ECCHO works closely with American National Standards Institute, National Automated Clearing House Association, the Financial Services Roundtable, Financial Services Technology Consortium, various clearinghouses (local, regional and national) and venders of check and check related services.
In recent years, ECCHO has led the effort to have the Federal Reserve change Regulation CC to allow banks to exchange check returns electronically. This culminated in the modifications to Regulation CC effective December 1999. ECCHO also lead the industry’s efforts to enact new state law known as the Uniform Electronic Transactions Act (UETA) relative to the inclusion of check images. The UETA validates that electronic records of checks (and other documents) carry the same legal weight as paper checks. This is critical to the acceptance of images of checks and other business documents. ECCHO also led the industry’s efforts to include checks in a new federal law known as the E-Sign Act. Similar to the UETA, the E-Sign Act, among other things, provides for all purposes that electronic records of checks (and other documents) carry the same legal weight as paper checks.
ECCHO is heavily involved in almost every aspect of check electronification across a broad spectrum of banking institutions and organizations, regulators, service providers and check law initiatives. ECCHO, as a not-for-profit corporation, is better positioned than any other organization to promote and support the transition to ECP, image and check truncation.
For additional information about ECCHO and ECCHO activities, please contact David Walker, the President of ECCHO, by calling (214) 273-3201 or via e-mail at dwalker@eccho.org.
ECCHO Member Institutions
Click here to view a list of ECCHO member institutions.
Additional Institutions Under ECCHO Rules
through SVPCo
- Astoria Federal Savings
- Bank of Stockton
- Cole Taylor
- First Citizens Bank
- Huntington Bank
- M&T Bank
- Members United Federal Credit Union
- Regions
- Southwest CFCU
- Sterling Federal Bank
- Sterling National Bank
- SunCoast FCU
Industry Recognitions
Click here for a list of organizations that have recognized and support ECCHO as the national provider of electronic check presentment (ECP) and image exchange rules:
ECCHO’s Check Electronification Activities
ABA – Participated in the American Banker Association’s identification and description of common terms for Check 21
Banking Administration Institute (BAI), National Electronic Check Presentment Conference – Co-sponsor
BITS Strategies Steering Committee
BITS Payments Framework Working Group
BITS Check Safekeeping Working Group
BITS Electronic Check Presentment Working Group
BITS Check Truncation Act Working Group – Co-chair
BITS Electronic Alternatives Payment Migration Model Subcommittee
Check 21 Act Executive Signing – Attended ceremony in Oval Office at which President Bush signed the Check 21 Act
ECCHO Check Image Exchange rules enhancements
ECCHO Check Image Replacement Document exchange rules
Federal Reserve Interoperability Task Force - Co-chair, Rules and Regulations Work Group
Federal Reserve Interoperability Task Force - Technology and Operations Work Group
Industry Group – Coordinated the development of consensus recommendations to the Federal Reserve for Check 21 regulations
Industry Group – Coordinated a joint industry response to the Fed’s proposed new subpart that was cosigned by 41 organizations.
Industry Group – Coordinated a joint industry response to the Fed’s proposed Regulation J that was cosigned by 21 organizations.
National Automated Clearing House Association (NACHA) - Electronic Check Council - Chair, Framework Work Group, Economic Framework & Banking Practices
SVPCo - Check Image Returns Project
SVPCo - Check Image Exchange Project
The Clearing House - Electronic Check Services - Operations Committee
Uniform Paper Check Exchange Rules – Created a set of common, uniform rules for the exchange of paper checks for adoption by clearing houses across the U.S.
U.S. House of Representatives – Testified before the Subcommittee on Financial Institutions and Consumer Credit concerning HR 5414, “Check Clearing for the 21st Century Act” – September 25, 2002
U.S. House of Representatives – Testified before the Subcommittee on Financial Institutions and Consumer Credit concerning HR 1474, “Check Clearing for the 21st Century Act” – April 8, 2003
U.S. Patent and Trade Office - Providing education on check image activities and developments
X9 Development of various industry stancards for ECP, Image and IRDs.
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