Sophisticated Neural Network Technology Improves Check Decision-Making Accuracy Industry's First On-Line Neural Networks to Process All Check Transactions

Furniture World Magazine

TeleCheck Services, Inc. has partnered with Deep View Systems, LLC, to create the industry's first on-line neural network-based system to process all check authorizations. Neural networks, complex mathematical formulas that can 'learn' from data, enhance decision-making accuracy in accepting checks at the point-of-sale and improve retailers' customer service. Currently, 180 customized networks are on-line. TeleCheck, the world's leading check acceptance company, is a subsidiary of First Data Corporation (NYSE: FDC). In 1991, TeleCheck pioneered on-line predictive risk modeling in the check acceptance industry. Today, neural network technology greatly refines TeleCheck's existing risk management system, which utilizes scorecards to evaluate more than 30 relevant transaction variables, including type of merchandise, check number and time of day, to determine the likelihood that a check will be good or bad. Neural networks take scorecard technology much further, recognizing patterns and uncovering hidden relationships in complex data sets. These networks are an improvement over existing systems because they consider the complex relationships in data at a transactional level and can predict with unmatched accuracy the probability of a check being good. TeleCheck's risk management supplements information available through the company's extensive negative and positive data bases. "While TeleCheck currently can stop about one half of fraud in real time at the point-of-sale, meaning those checks are not accepted, some types of fraud are difficult or impossible to detect. Neural network technology will drive substantial improvement in TeleCheck's ability to make decisions on unknown check-writers and improve customer service by increasing the accuracy of predicting which checks may go bad," said Jim Lerdal, president & chief operating officer at TeleCheck. Deep View Systems, LLC, creates and implements decision logic software in partnership with market leaders in various segments of the financial transaction processing industry, including credit/debit authorization, consumer loan approval, merchant services, and payment systems. Privately held Deep View Systems ( HYPERLINK http://www.deepview.com www.deepview.com ) has offices in West Bloomfield, MI and Colorado Springs, CO. TeleCheck provides electronic check acceptance (ECA), check guarantee and verification, collection services and new account screening to more than 200,000 retail, supermarket, financial institution, travel and association clients through a sales and service network with offices in more than 90 cities in the United States, Canada, Puerto Rico, Australia and New Zealand. In 1997, Houston-based TeleCheck authorized over $98.3 billion in checks and processed more than 1.9 billion check inquiries. For more information about TeleCheck and its products and services, visit the Internet site at www.telecheck.com. First Data Corporation (www.firstdatacorp.com) is one of the world's leading providers of transaction processing services -- credit, debit and pre-paid card processing; payment systems; electronic commerce and information-based services to both businesses and consumers. In partnership with clients, primarily financial institutions, and a worldwide Western Union agent network, First Data processes the information that allows consumers to pay for goods and services by check or card or any form of payment, except cash - at any point of sale, whether at the retail counter or on the Internet. And, through Western Union, First Data is the global leader spanning more than 150 countries in money transfer services that are convenient, fast and reliable. With an international employee base of more than 36,000, First Data delivers innovative solutions and quality service to a broad base of clients and consumers all needing to transact business - anytime, anywhere. Jalinna.Jones@mailgate.TeleCheck.com