Abstract: A system is provided for settling cash letters containing check images that are exchanged by banks connected to an image exchange system (IEX). Settlement amounts are computed and sent to the Federal Reserve Banks' National Settlement Service (FRBNSS) for settlement based upon business rules. Further, a method is provided for processing a financial check transaction between a plurality of financial institutions, including at least first and second institutions, the method including providing electronic check data, relating to at least one check to be paid by the second institution, from the first institution to the second institution to effect an automatic check presentment; and automatically performing an electronic settlement determination for the at least one check, based on the electronic check data and predetermined business rules.