Deluxe Financial Services is launching a new direct-check service today in which it will sell checks to bank customers.
Deluxe, which has traditionally sold checks through financial institutions, will now offer them directly to account holders through its DeluxeSelect program. It will provide customer service, support, sales and product knowledge.
The program will help banks not only because they get a percentage of sales, but because their customers benefit from dealing with a check-printing specialist, instead of check-ordering being handled by an entry-level bank employee.
“Our research shows that by putting DeluxeSelect to work for our financial institution clients, we can increase check order revenue by 50% per order,” said Chuck Feltz, president of Deluxe Financial Services, Chicago, in a statement. The company can upsell the customer products such as licensed image check designs and leather checkbook covers.
The debut follows a year-long pilot program.
CEO Lawrence J. Mosner tipped analysts off to the plan in a phone conference in January (DIRECT Newsline, Jan. 31, 2002). He acknowledged that the paper-check field had “peaked and started a gradual decline,” and that Deluxe needed to find new revenue streams.
The firm also sells checks by direct mail, and through its business services unit.
The firm’s Financial Services unit, which sells checks through banks, generated $54.6 million in net income during the second quarter of 2002–a 28.5% increase over the same period in 2001. The unit reported revenue of $192.3 million for 2001, compared with $187.1 million the year before.
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