With the February 1999 sale of eFunds to Deluxe, BankServ now becomes the largest non-aligned provider of ACH check services in the country. This marketplace change could not come at a better time for BankServ, since they recently received over $3.0 million in equity investment from Thomson Financial Services (TFS). Thompson provides information services to financial industry.
"Rapid growth in the check conversion market combined with the changing needs of the increasingly consolidated financial services industry create a highly receptive environment for BankServís innovative technology,íí said William Zola, Vice President of Thomson Financial Ventures.
BankServ is the nationís first non-bank private company to be granted access to the Federal Reserve wire transfer network. According to Dave Kvederis, President & CEO of BankServ "The market for converting checks into electronic funds transfers at the cash register is exploding. Our partnership with Thomson Financial Services will allow BankServ to draw on the tremendous strength, reputation, and leadership of TFS to serve our bank and merchant customers as our business rapidly expands."
BankServ currently has four product lines:
BankServ was one of the first companies to develop an integrated system for converting checks into EFTs at the point-of-sale. When a consumer presents a check to a merchant, it is scanned through a check reader which verifies the checks probable authenticity. The check data is then sent to the companyís centralized data center where it is converted into an electronic funds transfer. The merchant then returns the paper check to the consumer.
BankServ has installed its check conversion product in nearly 600 merchant locations and is truncating close to 100,000 checks each month. Additionally, the company has procured and tested the wire transfer software and has installed the service with 12 commercial banks and is currently processing nearly 20,000 transactions each month.
For more information, visit the TFS Web site at www.tfn.com or the BankServ Web site at www.bankserv-usa.com.
