iTransact Selects transmodus to Provide Automated Secondary Collections

Oxnard, CA – transmodus, the technology leader in on-demand check processing and collections, announced today that they have signed an agreement to provide iTransact with automated secondary collections as part of the iTransact Payment Solutions Gateway. The on-demand functionality will provide iTransact clients with the option to utilize bilingual automated collections processing as a precursor to conventional in-house or out-sourced collections. The service applies to collections for returned checks, past due bills and unpaid balances.

The transmodus solution generates system driven call and letter campaigns and also allows for a high level of client specified customization. This service will give iTransact clients a highly effective option to traditional person-to-person contact in the secondary collections process, while lowering the cost per collection through automation. Negative file reporting is supported by a patent pending process to credit an account upon receipt of payment. The negative file reporting encourages the payment of collection items to reinstate check writing privileges at a wide range of participating merchant locations nationally.

“As an Internet gateway provider of payment processing solutions we were very impressed by the collections automation offered by transmodus. We reviewed several options and transmodus was clearly the best choice,” says Jared Poulson, Vice President of iTransact, Inc.

Based on historic collection rates, the cost of automated secondary collections can be as much as 60% less than traditional collections. According to the company, the collection rate over the past year of operation has been on par with the nationally reported average of conventional person-to-person collections.

“We are pleased that iTransact has selected our automated collections processing to support the needs for their gateway clients. We are seeing a tremendous amount of interest in our automated secondary collections among clients, processors and banks. The seamless connection it offers between primary and traditional secondary collections is very appealing to any client or partner that wants to optimize the collections process by utilizing a higher degree of automation,” says Richard McShirley, Chief Marketing Officer of transmodus. The companies plan to offer automated secondary collection as part of specific iTransact solutions during the third quarter of 2005.