Bankway ACH – New Details on Processing

May 24, 2017Amisha Chauhan

Agenda

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• Moving payments faster

• ACH Auto Loader

• What else is coming?

• Monitoring NACHA proposals

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Moving Payments Faster

Moving Payments Faster

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• In 2015, NACHA adopted a rule to provide a new, ubiquitous capability for moving ACH payments

faster.

• Goes into effect in three phases

– Phase 1, September 23, 2016 - same day credit settlement

– Phase 2, September 15, 2017 - same day debit settlement

– Phase 3, March 16, 2018 - funds available by 5pm

Moving Payments Faster

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• Phase 1, September 23, 2016 - same day credit settlement

– Effective September 23, 2016 – receive and process same day ACH credits

– Excludes IAT, ENR, returns, NOCs and transactions > $25K, or future dated

– Optional for a financial institution to offer origination of same day ACH credits

$.052 same day entry fee paid to the RDFI by the ODFI

• Bankway released updates supporting phase 1 with the 2016.1 release

– Configurable at the bank, originator, company levels

Effective date

Effective date and “SD” in the descriptive date field

– New ACH reporting for same day transactions extracted

Same Day ACH Detail (AC report 55)

Same Day ACH Summary (AC report 56)

– By company ID

– Ability to accumulate counts and charge fees through account analysis

DODA92 – same day ACH credits5

Moving Payments Faster

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• Phase 2, September 15, 2017 - same day debit settlement

– Bankway will release updates supporting phase 2 with the 2017.1 release

– Processing of same day debits will follow same day credits

– New service activity will be available

D0DA93 – same day ACH debits

– Special testing feature (use in test environment only)

System Operations (SOACTE)

– 1 – 09/23/2016 thru 09/14/2017 – same day phase 1

– 2 – 09/15/2017 thru 03/15/2018 – same day phase 2

– 3 – 3/16/2018 and later – same day phase 3

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Moving Payments Faster

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• Phase 3, March 16, 2018 – funds available by 5pm

– No development changes necessary

– Set Bankway to memo post on file load

– Operational considerations to meet time constraints

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Moving Payments Faster

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• Bank considerations

– Client pricing

– Updating ACH agreements

– Procedural changes

– Staff training

– Internet banking providers

• FIS community core solutions

– Offer a consulting service focused on same day ACH settlement

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ACH Auto Loader

ACH Auto Loader

• Streamline operations

– Automate manual process

• Coming in 2017.1 release

• Supported on IBMi and Solaris platforms

– Database/region level setting

ACH Auto Loader

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• Requires specific file naming convention

– File name must include one character for each of the four processing parameters with an underscore (_) before and

after

Memo post the file - (Y) yes, (N) no

File type – (N) normal, (L) local ATM, (F) foreign ATM

Description location – (A) addenda record (NACHA), (H) batch header (per ATM vendor)

Modify file - (Y) yes, (N) no

– Example file names

File_YNAN_01.ach

Achfedfile_ynan_test.ACH

Originator55_YNAY_.ach

• User notices

– Users to be notified

– Types of notifications

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What else is coming?

Unauthorized Return Report

• New system generated report

– Controlled by the bank

• Report generates for all companies

• Sorted by company ID

• Update cold storage rules for new report name/number

Unauthorized Entry Fee

• New service activity to charge for transactions returned as unauthorized

• Unauthorized returned reasons include:

– R05 (unauthorized corporate debit to consumer account)

– R07 (authorization revoked by customer)

– R10 (customer advises not authorized)

– R29 (corporate customer advises not authorized)

– R51 (item is ineligible)

• Excludes

– R08 (payment stopped or stop payment on source document)

– IAT entries

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Monitoring NACHA Proposals

Monitoring NACHA Proposals

• DFI to DFI messaging

– Ability for financial institutions to utilize non-monetary ACH entries and supporting addenda records as messages and

responses to request and provide various types of information related to ACH transactions:

Proof of authorization

Converted check copies (Source Documents)

Written Statement of Unauthorized Debit

Additional information related to an originator

ODFI-requested returns

Trace request

• IAT transactions

Dates of birth for all natural persons that are party to the underlying payment transaction

Identification of additional financial institutions involved in inbound IAT entries that are part of a for-further-credit-to payment

Thank YouAmisha Chauhan

Amisha.Chauhan@fisglobal.com