PSCU Financial Services Becomes First In Credit Union Market to Contract for CheckFree’s FraudNet™

FraudNet Will Deliver Proactive Fraud Protection for PayLynx™ Online Bill Payment Subscribers

St. Petersburg, FL, Oct. 30, 2006 – PSCU Financial Services, the nation’s largest CUSO (credit union service organization), announced it has signed a contract with CheckFree Corporation (Nasdaq: CKFR) to offer CheckFree FraudNet™, an innovative fraud prevention program for electronic billing and payment subscribers that meets FFIEC (Federal Financial Institution Examination Council) multi-factor authentication requirements. The cooperative, which services nearly 400,000 online bill payment subscribers, will be the first in the credit union industry to offer CheckFree FraudNet to credit unions and their members.

CheckFree FraudNet scores each online bill payment before it is processed, allowing potentially fraudulent transactions to be identified and stopped before they are processed. By detecting suspicious scenarios and examining behavioral patterns, CheckFree constantly
updates its business rules with real-time intelligence that identifies new types of fraudulent transactions. Both consumer behaviors and merchant transaction activities are analyzed.

As an established leader in fraud detection and prevention, PSCU Financial Services delivers added value by identifying fraudulent transactions. The cooperative’s experienced operators will handle member contacts to verify the status of suspicious payments.

“We have established a leadership position in fraud prevention for credit and debit programs and are now expanding our risk management services to include online bill payment as well,” said Steve Ruwe, Chief Risk Officer, PSCU Financial Services. “Combining CheckFree’s leading technology and proven rule sets with our responsive member service and support makes CheckFree FraudNet a powerful tool for credit unions and their members.”

“PSCU Financial Services has been a valued partner since 2000 and is taking the lead as the first value-added reseller servicing the credit union market to offer an intelligent fraud detection solution for online bill payment,” said Jeff Weikert, senior vice president in CheckFree’s Electronic Commerce Division. “As part of the growing CheckFree FraudNet anti-fraud network, PSCU Financial Services efforts will help its credit union users prevent fraud before it results in losses.”

Users of online banking services are concerned about rising fraud rates. However, according to a January 2006 study released by Javelin Strategy & Research and the Better Business Bureau that was sponsored by CheckFree, Wells Fargo Bank and Visa USA, approximately 90 percent of unauthorized access to sensitive information is through non-electronic traditional channels, such as a lost or stolen wallet, bills and statements. The study recommends that consumers replace paper invoices, statements and checks, which can be stolen from unsecured locations such as mailboxes, with electronic versions to help prevent identity theft. CheckFree FraudNet will be the latest enhancement to PSCU Financial Services’ PayLynx™ online bill payment platform, which has more than 390,000 subscribers at 270 credit unions.

About CheckFree Corporation

Founded in 1981, CheckFree Corporation (Nasdaq: CKFR) provides financial electronic commerce services and products to organizations around the world. CheckFree Electronic Commerce solutions enable thousands of financial services providers and billers to offer the convenience of receiving and paying household bills online, via phone or in person through retail outlets. CheckFree Investment Services provides a broad range of investment management solutions and outsourced services to hundreds of financial services organizations, which manage about $1.5 trillion in assets. CheckFree Software develops, markets and supports payment processing solutions that are used by financial institutions to process more than two-thirds of the 14 billion Automated Clearing House transactions in the United States, and supports reconciliation, exception management, risk management, transaction process management, corporate actions processing, and compliance within thousands of organizations worldwide. For more information, visit www.checkfreecorp.com.

About PSCU Financial Services

As a non-profit cooperative, PSCU Financial Services is owned by more than 500 member credit unions representing over 10 million cardholder accounts and more than 390,000 online bill payment subscribers. Its Contact Center services more than 10 million inquiries a year.

PSCU Financial Services maintains its headquarters and Eastern operations center in St. Petersburg, Florida. The company is also supported by a West Coast operations center based in Phoenix, Arizona. PSCU Financial Services is the nation's largest Credit Union Service Organization (CUSO).

Top