CDS to Outline 'The Business Case for Electronic Check Presentment in a Lockbox Environment' at TAWPI Checks in Transition Conference

DES MOINES, Iowa--(BUSINESS WIRE)--March 27, 2006--Communications Data Services, Inc. (CDS), a unit of The Hearst Corporation, today announced that Nancy Gessmann, CDS vice president of operations and customer service will deliver a presentation on the business case for electronic check presentment (ECP) at TAWPI's Checks in Transition Conference today in Phoenix.

The TAWPI Checks in Transition Conference, to be held March 27-28 at the Wyndham Phoenix, is a unique "how to" program designed for corporate billers and banking, lockbox and third-party processing practitioners. As part of the event, CDS is offering attendees a tour of its Prescott, Ariz., facility, which provides retail and whole-tail lockbox services for a range of applications, including utility payments, memberships and newspaper subscriptions.

“Offering an open ECP platform reinforces CDS' position as a market and technology leader, while providing customers with expanded deposit options, and the ability to take advantage of new banking regulations and technology innovations.”

"The check clearing business model that has guided the payments industry for decades is changing radically," said Marc Haskelson, vice president, general manager of CDS Business Solutions. "Paper check clearing is still king, but the age of electronic settlement is just around the corner. There is money to be saved just as there is money to be made if corporate billers embrace the change and the opportunity that electronic check clearing presents. Today's presentation will show billers how to start building the business case for ECP."

At the center of CDS' expanding electronic check clearing strategy is the rollout of an open ECP platform for transmitting deposits to any institution, regardless of geographic location. CDS is working with leading depository institutions to expand its use of ECP. CDS currently transmits image cash letters (ICLs) on behalf of its customers to three prominent depository institutions, and has ECP initiatives underway with several others.

The CDS open ECP platform combines software technology developed by CDS with expertise gained through its work with depository institutions. By transmitting electronic files with check images and related data to banks, CDS no longer has to prepare and transport paper-based cash letter transactions to the bank, which in turn, allows CDS clients to accelerate funds availability, lower bank charges and streamline return items handling.

This process also eliminates the issues with paper cash letters and enables banks to determine the most cost-effective and efficient means for clearing payments - electronic deposit, image exchange, automated clearinghouse (ACH) or image replacement document.

"CDS is advancing its electronic payments strategy with a series of partnerships focused on enabling corporate billers to capitalize on the check clearing revolution that is transforming our industry," said Gessmann. "Offering an open ECP platform reinforces CDS' position as a market and technology leader, while providing customers with expanded deposit options, and the ability to take advantage of new banking regulations and technology innovations."

Gessmann will tell conference attendees that the business case for ECP delivers benefits in four areas: operational costs, including labor, capital and support; banking fees, such as charges for deposits, returned/uncollected items and general account services; funds availability, including process timing and non-local, transit items; and returned item costs.

The Houston Chronicle, which has the second highest daily and Sunday readership in the nation, is currently participating in an ECP program with CDS and a major cash management bank. Gessmann will detail how the newspaper has leveraged ECP to decrease its banking fees by 50 percent, reduce returned items by 80 percent and achieve a 90 percent check conversion rate - all while speeding funds availability and having negligible customer service impact. The Houston Chronicle has been a CDS Data Capture Services client since 2001.

For more information on TAWPI's Checks in Transition Conference, visit www.tawpi.org.

About Communications Data Services, Inc.

In the business of providing outsourced services since 1972, CDS has earned a reputation for service and value in the industry. Backed by the stability and experience of The Hearst Corporation, CDS provides a complete outsourced solution for clients to manage and execute all of the critical business processes that impact their customers - from order and information capture, and data imaging and management, to lettershop (lettershop), printing, mailing and product fulfillment. CDS counts among its customers an elite group of the world's leading magazine publishers, direct marketing firms, financial institutions and corporate billers. CDS brings the right mix of people, processes, technology and tools to every job we do, making CDS a trusted partner for complex, mission-critical applications. CDS is headquartered in Des Moines, Iowa, with facilities in Arizona, New York, Pennsylvania, Australia, Canada and the United Kingdom. Learn more by calling (866) 897-7987 or visiting www.cdsfulfillment.com.