transmodus Reports Increased Recurring ACH Payment Collections

transmodus, the technology leader in on-demand payment and collections automation announced today that it has seen a dramatic increase in the transaction volume for the collections processing of returned recurring ACH payments. Using the service, a client instructs its bank or banks to route return files to transmodus electronically. At that point all transactions that are eligible for re-presentment are processed to seek payment of the original amount plus allowed fees. Ineligible transactions that may have been returned from a closed account or from transactions that failed during the re-presentment process are automatically forwarded for automated secondary collections (ASC) processing. The ASC service is a transmodus exclusive.

The service applies to any business or public agency that accepts recurring payments where their service contract specifies this type of collections processing. The typical clients for this service are cable providers, wireless phone companies, and fitness centers to name a few.

“This service frees our clients from having to expend any back office effort to pursue these types of collections. At the same time, customer service is actually enhanced, as our clients have access to an intuitive web interface, and have an option to receive periodic or real-time data feeds to their back office systems,” according to Michael Shirman, CTO of transmodus, ?Security is implemented on multiple levels: from physical access, firewalls and transpor t protocols to database and application level authentications and permissions, to strong encryption, all providing for a secure environment for sensitive financial information.?

According to information available on the NACHA Web site the number of pre-authorized, automatic bill payments, known as Direct Payment, increased by 5.3 percent to 3.1 billion payments in 2005.

?We are pleased with the growth we are seeing in this part of our business and expect it to continue as more companies move to recurring ACH payments. We are also taking steps to make our resellers more aware of the opportunity this type of business represents,? says Richard McShirley, CMO of transmodus. About transmodus

transmodus provides an on-demand solutions platform that delivers automation for check and ACH payments and collections processing. The company provides a complete processing platform solution for check processors, collection agencies and bank partners. transmodus has positioned itself as a leader by listening carefully, thinking ahead and moving forward with purpose to provide clients and processing partners with access to the best on-demand processing solutions. transmodus is an IBM business partner.