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. Just 30 months after the effective date of Check 21, more than 8 billion check payments totaling $11.5 trillion per year have already moved from the traditional paper-based clearing process to improved image-based processes. Based on the 2004 Federal Reserve Payments Study, that amount is five times greater than the sum of all debit card payments ($.6 trillion) and all credit card payments ($1.7 trillion). On an average day during April 2007, more than 6,100 institutions received 21.2 million check images for posting. These total 5.4 billion checks per year. This Check Image Collaborative industry image clearing data reflects transactions settled through the Federal Reserve, NCHA and SVPCO. When the same payments were cleared through two or more of these organizations, those payments were counted only once. Check Image Collaborative Communications Work Group

Highlights: Chart reflects volume received by DFIs for payment from other DFIs or an intermediary. Volume grew by 118% in 6 months – October ‘06 (9.75) to April ’07 (21.2). Average daily image volume grew from 2.2 to 21.2 million or by 864% from April 2006 to April April volume annualized is 5.4 billion images received per year. Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 # Items in Millions Average # of Images Received /Day 9.75 Million Images / Day 21.2 Million Images / Day

Highlights: Chart reflects the number of paying bank R/Ts receiving check images. Many R/Ts through April 2007 were for individual institutions. The number of receiving R/Ts grew between April ’06 & April ‘07 from 3,770 to 8,773 or 133%. 8,773 routing transit numbers represents more than 6,100 institutions or approximately 37% of all U. S. institutions are receiving check images. Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07Mar-07 Apr-07 # of Receiving R/Ts Number of R/Ts Receiving Images Image Receiving R/Ts 8,773

Highlights: All checks were imaged before reconversion to substitute checks. Chart reflects volume received by DFIs for payment from other DFIs or an intermediary. Across the 13 month period Image-based clearing volume grew from to million / mo or by 405% with 66% of the volume cleared by image in April The annualized April ‘07 volume (8.1 billion items/yr.) is approximately 23% of total check volume cleared. Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 # Items in Millions # of Images & Substitute Checks Forward Collection Only

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 dollar amount grew from $380 to $958 billion / mo or by 151%. Annualized April ‘07 dollar amount = $11.5 trillion/yr. $11.5 trillion is 29% of the total dollars cleared via check and is five times the sum of all debit card and credit card payments. Data Sources: Transactions settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07Mar-07 Apr-07 $ Amounts in Billions $ Amounts of Images & Substitute Checks Forward Collection Only