NACHA’s Online Payments Pilot April 10, 2006 Speakers: Elliott McEntee, President & CEO, NACHA Samantha Carrier, Director...
Agenda <ul><li>Introduction </li></ul><ul><li>The Payment Method Defined </li></ul><ul><li>Demos </li></ul><ul><li>Stakeh...
Another Online Payment Option? <ul><li>Rapid growth of Internet commerce has led to industry challenges. </li></ul><ul><li...
Background <ul><li>NACHA began looking at ‘credit push’ in 1998 </li></ul><ul><li>Project ACTION completed in 2002 </li><...
The Payment Method Defined <ul><li>‘ Credit Push’ simply refers to using online banking to initiate Internet payments </li...
The Pilot Defined <ul><li>Transactions tested: consumer bill payments purchases, funds transfers </li></ul><ul><li>Pilot ...
Stakeholder Benefits - FIs <ul><li>New potential revenue stream - FIs generate little direct revenue from the online banki...
Stakeholder Benefits – Business Participants <ul><li>Sales lift – potential for new customers, higher tickets, more purcha...
Stakeholder Benefits – Consumers <ul><li>FI is already a ‘trusted’ broker with online banking </li></ul><ul><li>Security a...
Online demos <ul><li>Review of each demo: </li></ul><ul><li>Consumer Purchases </li></ul><ul><li>Consumer Bill Payments </...
eWise Systems <ul><li>eWise is an international provider of on-line payment systems and on-line banking applications – of...
The Role of eWise <ul><li>eWise, in partnership with Unisys, will serve </li></ul><ul><li>as the NACHA pilot processor an...
eWise continued… <ul><li>Security and ongoing testing </li></ul><ul><li>SDKs and documentation </li></ul><ul><li>2 nd /3 ...
Pilot Timeline <ul><li>Recruitment is currently underway </li></ul><ul><li>Pilot participants confirmed by August 30 th </...
Next Steps <ul><li>INTERESTED IN LEARNING MORE ABOUT THE PILOT? </li></ul><ul><li>Attend the Online Payments Pilot Session...
Q&A <ul><li>CONFERENCE CALL COMPANY WILL FACILITATE Q&A </li></ul>
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NACHA's Online Payments Pilot April 10, 2006

Published on: Mar 3, 2016
Published in: Economy & Finance      Business      
Source: www.slideshare.net


Transcripts - NACHA's Online Payments Pilot April 10, 2006

  • 1. NACHA’s Online Payments Pilot April 10, 2006 Speakers: Elliott McEntee, President & CEO, NACHA Samantha Carrier, Director, eCommerce Group, NACHA Alex Grinberg, President, eWise Systems
  • 2. Agenda <ul><li>Introduction </li></ul><ul><li>The Payment Method Defined </li></ul><ul><li>Demos </li></ul><ul><li>Stakeholder Benefits </li></ul><ul><li>The Pilot Defined </li></ul><ul><li>The Role of eWise </li></ul><ul><li>Timeline </li></ul><ul><li>How to Participate </li></ul>
  • 3. Another Online Payment Option? <ul><li>Rapid growth of Internet commerce has led to industry challenges. </li></ul><ul><li>Privacy and security are primary concerns for consumers who do not transact online. </li></ul><ul><li>VISA Press Release (Jan. 06) </li></ul><ul><ul><li>Study of more than 6,000 consumers </li></ul></ul><ul><ul><li>24% report shopping less online </li></ul></ul><ul><ul><li>62% are more discriminate about sites where they make purchases </li></ul></ul><ul><li>American Banker (Jan. 06) </li></ul><ul><ul><li>Fraud is now the top reason given for chargebacks on several networks </li></ul></ul><ul><ul><li>Global Payments had a 10 to 20% increase in fraud in 2005 </li></ul></ul><ul><li>Credit Push like payments are widely used today in Europe and Japan </li></ul>
  • 4. Background <ul><li>NACHA began looking at ‘credit push’ in 1998 </li></ul><ul><li>Project ACTION completed in 2002 </li></ul><ul><li>A Proof of Concept (POC) organized in 2005 to evaluate the technical viability and business case for credit push </li></ul><ul><li>POC findings presented to NACHA Board in February 2006 </li></ul><ul><li>NACHA’s Online Payments Pilot approved to test consumer bill payments, purchases and funds transfers </li></ul>
  • 5. The Payment Method Defined <ul><li>‘ Credit Push’ simply refers to using online banking to initiate Internet payments </li></ul><ul><li>Consumers keep financial information private – never disclosed to the seller </li></ul><ul><li>Seller receives real-time authorization of guaranteed payment (ACH Credit) </li></ul><ul><li>Financial Institutions authenticate the buyer, reducing risk and fraud </li></ul><ul><li>Relieves seller burden to secure/protect consumer financial information </li></ul>
  • 6. The Pilot Defined <ul><li>Transactions tested: consumer bill payments purchases, funds transfers </li></ul><ul><li>Pilot Participants: </li></ul><ul><ul><li>Buyer’s FI (Guaranteeing ODFI) </li></ul></ul><ul><ul><li>Seller’s FI (Receiving FI) </li></ul></ul><ul><ul><li>Businesses (online merchants, billers, state govts.) </li></ul></ul><ul><ul><li>eWise (pilot processor) </li></ul></ul><ul><li>Participation Requirements: </li></ul><ul><ul><li>Buyer’s FI must have deployed multi-factor authentication for online banking </li></ul></ul><ul><ul><li>Business must be sponsored by Receiving FI </li></ul></ul><ul><ul><li>Resources necessary to work with eWise on integration </li></ul></ul>
  • 7. Stakeholder Benefits - FIs <ul><li>New potential revenue stream - FIs generate little direct revenue from the online banking channel today </li></ul><ul><li>Leverage existing infrastructure - costs to support this channel have increased in the areas of authentication and security (FFIEC Guidance) </li></ul><ul><li>Meet growing demand from businesses and governments for new online payment services </li></ul><ul><li>Non-FIs developing products to meet market demands and address consumers’ concerns </li></ul>
  • 8. Stakeholder Benefits – Business Participants <ul><li>Sales lift – potential for new customers, higher tickets, more purchases, lower shopping cart abandonment </li></ul><ul><li>Real-time authorization of a guaranteed payment (ACH Credit) </li></ul><ul><li>Financial Institution authenticates known customers </li></ul><ul><li>Reduce risk and fraud </li></ul><ul><li>Eliminate need to secure/protect customers’ financial data </li></ul>
  • 9. Stakeholder Benefits – Consumers <ul><li>FI is already a ‘trusted’ broker with online banking </li></ul><ul><li>Security and privacy – no financial information shared with the seller </li></ul><ul><li>Familiar user interface with online banking </li></ul><ul><li>More control over the payment </li></ul>
  • 10. Online demos <ul><li>Review of each demo: </li></ul><ul><li>Consumer Purchases </li></ul><ul><li>Consumer Bill Payments </li></ul><ul><li>Funds Transfers </li></ul>
  • 11. eWise Systems <ul><li>eWise is an international provider of on-line payment systems and on-line banking applications – offices in US, UK and Australia </li></ul><ul><li>Selected as technology provider for NACHA’s proof-of-concept in January 2005 </li></ul><ul><li>Successfully completed the proof-of-concept technical test meeting or exceeding all success criteria </li></ul><ul><li>Will provide the eWise Network for NACHA’s Online Payments Pilot </li></ul>
  • 12. The Role of eWise <ul><li>eWise, in partnership with Unisys, will serve </li></ul><ul><li>as the NACHA pilot processor and provide the </li></ul><ul><li>eWise Network including: </li></ul><ul><li>eWise Payment applications </li></ul><ul><li>Data center hosting and support </li></ul><ul><li>Hardware, software, networking, connectivity </li></ul><ul><li>Back-up, testing, development environments </li></ul><ul><li>Implementation support for FIs and businesses </li></ul><ul><li>Business process services - transaction reporting, exceptions, reconciliation </li></ul>
  • 13. eWise continued… <ul><li>Security and ongoing testing </li></ul><ul><li>SDKs and documentation </li></ul><ul><li>2 nd /3 rd level support for Guaranteeing ODFIs (buyer’s FI) and businesses within agreed SLAs </li></ul><ul><li>Compliance certification of participating FIs and businesses </li></ul><ul><li>Disaster recovery </li></ul>
  • 14. Pilot Timeline <ul><li>Recruitment is currently underway </li></ul><ul><li>Pilot participants confirmed by August 30 th </li></ul><ul><li>Pilot planning through December 2006 to address implementation and finalize business rules </li></ul><ul><li>Pilot launch in early 2007 </li></ul><ul><li>Pilot Run time 12 months </li></ul><ul><li>Additional participants accepted during the pilot </li></ul>
  • 15. Next Steps <ul><li>INTERESTED IN LEARNING MORE ABOUT THE PILOT? </li></ul><ul><li>Attend the Online Payments Pilot Session at NACHA’s PAYMENTS 2006 Conference May 7-10 th in San Diego </li></ul><ul><li>Visit the Online Payments Pilot Booth at the PAYMENTS 2006 Conference </li></ul><ul><li>Contact Samantha Carrier at NACHA: [email_address] to schedule a follow-up meeting </li></ul>
  • 16. Q&A <ul><li>CONFERENCE CALL COMPANY WILL FACILITATE Q&A </li></ul>

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