News | October 24, 2007

Check Imaging: Major Supermarket Retailer, Hy-Vee Inc., Set To Recognize Full Value Of Back-Office Check Imaging And Conversion From NCR

Hy-Vee Inc., one of the nation's top 20 supermarket retailers, has selected NCR Corporation for the deployment of remote check deposit capture with back-office conversion (BOC). Hy-Vee is implementing NCR's ImageMark Commercial Passport technology across its entire 224-store chain.

Hy-Vee's image-based capture strategy is designed to reduce check processing costs, without impacting customers. As a result, Hy-Vee is able to leverage the lower cost automated clearing house (ACH) network. The comprehensive solution purchased by Hy-Vee includes remote, web-based image capture, conversion, validation, archiving and associated services. The new BOC ruling by the National Automated Clearing House Association, effective as of March 2007, allows businesses to collect a check written at the checkout counter and convert it to an ACH transaction in the back office and then deposit that transaction electronically.

Using NCR's proven commercial capture technology, Hy-Vee is capturing check images and data in the back office of each retail store, transmitting a balanced deposit via a secure Internet connection to the corporate office, applying BOC rules to determine eligibility and converting qualified transactions to an ACH file for processing. Checks that do not qualify for conversion are processed as an image using NCR technology. The image of the check and ACH transactions are also routed to an NCR archive for easy retrieval.

As owner of Midwest Heritage Bank, Hy-Vee has a unique perspective on check processing and the associated costs. The comprehensive processing strategy allows Hy-Vee to benefit from earlier funds availability, reduced courier costs, and improved internal reporting.

Kevin Reeve, assistant vice president and controller at Hy-Vee Inc., said, "We wanted more control over our costs and a way to utilize our bank operations. We felt our best option was to bring the technology in-house and look for ways to leverage our investment. ACH alone will save us about 4 cents on every deposited check. NCR understood our strategy and offered a very competitive, end-to-end solution. Based on what we have seen so far, we anticipate significant cost savings when the rollout is complete."

Andrew Orent, vice president of Payment and Imaging Solutions for NCR, said, "Retail businesses have a very compelling alternative for check clearing with BOC, and the best news is that it can be accomplished without impacting the point-of-sale process. That is critical to retailers like Hy-Vee. Given NCR's extensive experience in retail and financial services, we truly understand that. We are very excited to help Hy-Vee meet their check clearing goals."

About Hy-Vee
Hy-Vee, Inc. is an employee-owned corporation operating 224 stores in seven Midwestern states. In fiscal year 2006 the company recorded total sales in excess of $5.2B, ranking it among the top 20 grocery chains according to "Progressive Grocer" magazine (May 2007) and the top 35 private companies in the United States. Headquartered in West Des Moines, Iowa, Hy-Vee's supermarkets and drug stores are located in Iowa, Illinois, Missouri, Kansas, Nebraska, South Dakota and Minnesota. Hy-Vee's combination food and drug centers reflect the changing lifestyles of today's consumers, with emphasis on freshness, variety and one-stop shopping convenience. Hy-Vee on the web:

About NCR Corporation
NCR Corporation is a global technology company leading the way businesses interact with customers. NCR's assisted- and self-service solutions and comprehensive support services address the needs of retail, financial, travel, healthcare, hospitality, gaming and public sector organizations in more than 100 countries. NCR ( is headquartered in Dayton, Ohio.

SOURCE: NCR Corporation