US Dataworks to market JP Morgan Chase's ARC product
US Dataworks, Inc. (Amex: UDW), a leading developer of payment processing software, announced today that it has entered into a strategic marketing agreement with JPMorgan Chase (NYSE: JPM), a leading global financial services firm, to jointly offer an Accounts Receivable Conversion (ARC) processing solution to the market.
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This follows an earlier announcement from JPMorgan Chase in which the company stated that it was launching an ARC processing solution, developed in part by US Dataworks, that enables retailers and billers to covert paper checks into electronic transactions.
US Dataworks will join with JPMorgan Chase to co-market this comprehensive ARC solution, which includes US Dataworks industry-leading Clearingworks(TM) capabilities of MICR parsing, eligibility sorting and return processing. Fees for the ARC platform will be charged through a simple and revolutionary, all inclusive per transaction price, thus requiring little or no up-front investment from the end-user.
"We are pleased to join with JPMorgan Chase to bring to the market this state-of-the-art ARC solution," said Charles Ramey, chairman and CEO of US Dataworks. "While ARC is the fastest growing electronic check application in the payments industry, there remains an untapped market for ARC services due to the capital investment typically required to enable ARC in their own payment operations."
"With little or no up-front cost, we are able to offer a premium ARC solution to customers in a wider variety of industries, particularly the middle market and public sectors, which have been slow to adopt ARC because of its perceived cost of entry," said Hector Sandoval, vice president and e-check product manager, JPMorgan Treasury Services.
"US Dataworks worked closely with JPMorgan Chase to develop this all- inclusive ARC solution," added Sandoval. "With their industry knowledge and technological expertise, US Dataworks is the perfect strategic marketing ally for JPMorgan Chase."
Recent changes in the National Automated Clearing House (NACHA) rules coupled with the passage into law of Check 21 now make it possible for banks, retailers and billers to electronically process paper checks and all other forms of payments. The transition to electronic processing is expected to create greater efficiencies and immediate cost savings for the retail and remittance industries.