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. On an average day during December 2008, 13,053 institutions received almost 49 million check images for posting. These total 12.3 billion checks per year and $14.6 trillion. Also, another 11.7 million checks per day that were sent as images and delivered to paying institutions as substitute checks. These totaled 2.9 billion checks per year and $3.3 trillion. This CheckImage Collaborative image clearing report reflects transactions settled through the Federal Reserve, Viewpointe (formerly PaymentsNation), SVPCO and local / regional exchanges. When the same payments were cleared through two or more of these organizations, those payments were counted only once. The 2007 Federal Reserve’s Payments Study shows that the volume of checks (both written and paid) continue to be larger than debit card, credit card or ACH transactions. The report also shows that the dollar amount of checks increased from 2003 to 2006 from $40 to $41.7 trillion. CheckImage Collaborative Communications Work Group

Highlights: Chart reflects volume received by DFIs for payment from other DFIs or an intermediary. Average daily image volume grew from 15.2 to 48.8 million from January 2007 to December December 2008 volume annualized is 12.3 billion images received per year. Based on the Fed’s 2007 Payments Study this is 40% of all checks paid in Data Sources: Transactions settled through the Federal Reserve, Viewpointe, SVPCO and other local / regional exchanges Jan-07Mar-07May-07 Jul-07 Sept-07 Nov-07Jan-08Mar-08May-08 Jul-08 Sept-08 Nov-08 Dec-08 # Items in Millions Average # of Images Received /Day

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 # of R/Ts Receiving Images Number of R/Ts Receiving Images Highlights: Chart reflects volume received by DFIs for payment from other DFIs or an intermediary. Number of receiving R/Ts grew from 6,975 to 17,965 from January 2007 to December ,965 routing transit numbers represents 13,053 institutions or approximately 82% of all U. S. institutions that received check images. Data Sources: Transactions settled through the Federal Reserve, Viewpointe, SVPCO and other local / regional exchanges Jan-07 Mar-07 May-07 Jul-07 Sept-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sept-08 Nov-08 Dec-08

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 monthly dollar amount received grew from $770.5 billion to almost $1.6 trillion. Annualized December 2008 dollar amount = $18 trillion/yr. $18 trillion is 43% of the total dollars cleared via check payments. Data Sources: Transactions settled through the Federal Reserve, Viewpointe, SVPCO and other local / regional exchanges $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $ Amounts of Images & Substitute Checks Forward Collection Only $ Amounts in Billions Jan-07 Mar-07 May-07 Jul-07 Sept-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sept-08 Nov-08 Dec-08

Data Sources: Transactions settled through the Federal Reserve, Viewpointe, SVPCO and other local / regional exchanges Highlights: All checks were imaged before reconversion to substitute checks. Chart reflects volume received by DFIs for payment from other DFIs or an intermediary. Over 24 month period Image-based clearing volume grew from 530 to 1,331 million / mo with 81% of the volume cleared by image in December 2008 (22 days in Dec). The annualized December ‘08 volume (15.2 billion items/yr.) is approximately 50% of total check volume paid ,000 1,100 1,200 1,300 # Items in Millions Jan-07 Mar-07 May-07 Jul-07 Sept-07 Nov-07Jan-08 Mar-08 May-08 Jul-08 Sept-08 Nov-08 Dec-08 # of Images & Substitute Checks Forward Collection Only Substitute Checks Images 1,400

Highlights: Chart reflects volume received by DFIs for payment from other DFIs or an intermediary. Average daily image volume grew from.08 to million from Qtr to Qtr Qtr volume annualized is 11.5 billion images received per year. Based on the Fed’s 2007 Payments Study this is 38% of all checks paid in Data Sources: Transactions settled through the Federal Reserve, Viewpointe, SVPCO and other local / regional exchanges # Items in Millions Average # of Images Received /Day Qtr 1 '05 Qtr 2 '05 Qtr 3 '05 Qtr 4 '05 Qtr 1 '06Qtr 2 '06Qtr 3 '06 Qtr 4 '06 Qtr 1 '07 Qtr 2 '07 Qtr 3 '07 Qtr 4 '07 Qtr 1 '08 Qtr 2 '08 Qtr 3 '08 Qtr 4 '08

Highlights: Chart reflects images checks received by DFIs for payment from other DFIs or an intermediary. The quarterly dollar amount of images received grew from $1.7 billion to $3.6 trillion. Annualized Quarter dollar amount = $14.6 trillion/yr. $14.6 trillion is 35% of the total dollars cleared via check and is about 4.5 times the sum of all debit card and credit card payments. Data Sources: Transactions settled through the Federal Reserve, Viewpointe, SVPCO and other local / regional exchanges $ Amounts in Billions $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Qtr 1 '05 Qtr 2 '05 Qtr 3 '05 Qtr 4 '05 Qtr 1 '06 Qtr 2 '06 Qtr 3 '06 Qtr 4 '06 Qtr 1 '07 Qtr 2 '07 Qtr 3 '07 Qtr 4 '07 Qtr 1 '08 Qtr 2 '08 Qtr 3 '08 Qtr 4 '08 $ Amounts of Images Received by Paying Institution