SAME DAY ACH CLEARING & SETTLEMENT: THE REVOLUTION OF FASTER ACH PAYMENTS

Transcription

1 SAME DAY ACH CLEARING & SETTLEMENT: THE REVOLUTION OF FASTER ACH PAYMENTS Presenters: Sally Dievendorf, TD Bank Denise Grosso, TD Bank Laura Clary, Fiserv Manny Evangelou, TD Bank

2 Welcome to PAYMENTS 2015 PAYMENTS 2015 Mobile App: Check-in, access presentations and complete evaluations on the mobile app. Available on itunes and GooglePlay, search PAYMENTS 2015 WiFi: Complimentary Internet access is available in session rooms via the PAYMENTS network, user name and password: opentext CECs: Most sessions count toward continuing AAP accreditation. Learn more about becoming an AAP at the NACHA and RPA booth in the exhibit hall. Join the Conversation on #PAYMENTS2015

3 Thank you to our Sponsors

4 OBJECTIVES Provide a creative influence on Same-Day ACH strategic thinking Demonstrate specific examples of Payment Scenarios that reflect Same-Day ACH through Role-plays Offer a glimpse into the Technical and Operational efforts being made to prepare for the Revolution of Same-Day ACH Share high-level considerations for Same-Day ACH and insight about faster payment channels 4

5 AGENDA Evolution of Same-Day ACH Past, Present & Future Use Cases of Same-Day ACH "Emergency Payroll" "Cash Crunch" Strategic Thinking Customer Centric Approach Business/Technology/Vendor Approach Ongoing Considerations Future in Motion References & Links 5 Q & A

6 Evolution of Same-Day ACH Where we are: NACHA's Same-Day ACH Phased Proposal Federal Reserve's Pursuit of a Better Payment System NACHA's Phased Approach Phase II Phase I 2017 September September 2016 Phase III 2018 March 2018 Where we were: Typical Operator Next Day Settlement for Current Effective Dated Entries Perceived Same-Day Settlement for On-Us / By-Us Originated Items FED ACH Same-Day Service (Opt-in) Direct Exchange

7 Use Case "Emergency Payroll" Same-Day ACH Credits Settlement Originator Never Late, Inc. Receiver Jo PayMe Originator Normally submits Friday's Payroll Wednesday afternoon Works for Never Late, Inc. and Relies on Paycheck for Month-to-Month Bills Receiver ACH Network ODFI R.D.F.I. CFPB, N.A. Memo-Posts credits on Collection Intra-Day (NACHA Phase I, II by EOD, Phase III by 5 p.m. RDFI Local Time) RDFI O.D.F.I. Dodd Frank, N.A. Distributes ACH entries multiple times per Day (Same-Day ACH Windows: 10 a.m. and 3 p.m. EST)

8 Use Case "Cash Crunch" Same-Day ACH Debits Settlement PaymeNow, Inc. Dodd Frank, N.A. Originates ACH Debits as Rendered Payments to cover Consumers Utility Usage and Management Originator ODFI Strategically distributes ACH entries multiple times per Day Receiver RDFI Jo PayBills CFPB, N.A. Makes timely payment arrangements with PaymeNow, Inc. to debit his account on July 17th. Strategically Memo-Posts debits on Collection Intra-Day

9 Strategic Thinking Customer Centric Approach Same-Day ACH ACH Network Operations Customers Technology

10 Strategic Thinking Operations/Technology/Vendor Approach Customer Awareness Education, Managed Expectations, Delivery, Service Funds Availability Debits, Frequency, Timing System Logistics Enhancements, Costs, Timelines, Impact, Constraints 10

11 Ongoing Considerations Regulatory Compliance, Time Order Posting, Reg E, NACHA Rules ACH EDI & Returns Reporting Obligation Operational Processing Reconciliation Billing, Expectations, Reporting NACHA Phased Approach Phase 4?

12 Future in Motion The Geography of Faster Payment Channels United States: o NACHA Proposal for Same Day ACH (Phases I,II, III) o Federal Reserve Pursuit of a Better Payment System Payment System Improvement Public Consultation Paper (Sept. 2013) o The Clearing House Initiative for Secure Real-Time Payment System Other Countries: o UK Faster Payments Service (FPS) o Australian Real Time Payments o Singapore G3 Immediate Payment System Consider this If the ACH Network does not capitalize, who will?

13 References & Links

14 Q & A

15 Thank You!! Sally Dievendorf, AAP VP, Operations Manager US Payments Services Division TD Bank Denise Grosso, AAP VP, Sr. Lead Business Systems Analyst US Technology Solutions TD Bank Laura Clary, AAP Director, Product Management Payments Group Fiserv Jared Ramsey, AAP VP, Operations Manager US Payments Services Division TD Bank Judith Dunn, AAP VP, Projects Specialist Manager US Payments Services Division TD Bank Emanuel "Manny" Evangelou VP, Sr. Business Systems Analyst US Technology Solutions TD Bank