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ROTTERDAM, N.Y. - Golub Corp. has selected KeyBank, N.A. to expedite electronic check clearing for its Price Chopper supermarket chain, according to a story in The Business Review.
Price Chopper, which has 100 stores in Connecticut, Massachusetts, New York, Massachusetts, New Hampshire, Pennsylvania, and Vermont, streamlined its check-clearing process to trim expenses. Running checks through as if they were debit-card transactions reduces the overhead associated with back-office check processing and minimizes collection costs, Jennifer Kenneally, v.p. and treasurer of Golub Corp., said in a statement.
The supermarket chain is already one of the top point-of-purchase transaction orginators in the country, according to the National Automated Clearing House Association, the trade group for the electronic payments industry, the story reported. In the third quarter, about 5 percent of the 38.5 million point-of-purchase transactions conducted were attributed to Price Chopper.
Cleveland-based KeyBank, which has about 60 offices in the Albany, N.Y. market, expects to eventually handle 7.8 million transactions a year for Price Chopper.
Kenneally said Price Chopper expects the deal with KeyBank to provide it with cost savings resulting from faster, more efficient electronic processing, reduced bank service charges, and fewer losses from returned checks.