S
AME
D
AY
ACH
C
LEARING
& S
ETTLEMENT
:
T
HE
R
EVOLUTION
OF
F
ASTER
ACH
P
AYMENTS
Presenters:
Sally Dievendorf, TD Bank
Denise Grosso, TD Bank
Laura Clary, Fiserv
Manny Evangelou, TD Bank
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 Twitter: @NACHA_PAYMENTS
4
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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
5
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Evolution of Same-Day ACH
–
Past, Present &
Future
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Use Cases of Same-Day ACH
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"Emergency Payroll"
–
"Cash Crunch"
•
Strategic Thinking
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Customer Centric Approach
–
Business/Technology/Vendor Approach
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Ongoing Considerations
•
Future in Motion
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References & Links
•
Q & A
...2010
2013…2015
2016
2017
2018
NACHA's Phased Approach
Phase I
Phase II
Phase III
• Typical Operator Next Day Settlement for Current Effective Dated Entries
• NACHA's Same-Day ACH Phased Proposal
Where we are:
Where we were:
September 2016 September 2017 March 2018• Federal Reserve's Pursuit of a Better Payment System
• Perceived Same-Day Settlement for On-Us / By-Us Originated Items
• FED ACH Same-Day Service (Opt-in)
• Direct Exchange
Use Case "Emergency Payroll"
Same-Day ACH Credits Settlement
Originator
Never Late, Inc.
Normally submits Friday's Payroll Wednesday afternoon
Receiver Jo PayMe
Works for Never Late, Inc. and Relies
on Paycheck for Month-to-Month Bills
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)
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)
ACH
Network
Originator ODFI RDFI ReceiverUse Case "Cash Crunch"
Same-Day ACH Debits Settlement
• Strategically Memo-Posts debits on Collection Intra-Day • Makes timely payment
arrangements with
PaymeNow, Inc. to debit his account on July 17th.
• Strategically distributes ACH entries multiple times per Day
• Originates ACH Debits as Rendered Payments to cover Consumers Utility Usage and Management
Originator
ODFI
RDFI
Receiver
PaymeNow, Inc. Dodd Frank, N.A.
Customers
Customer Centric Approach
Technology Operations
ACH Network Same-Day ACH
10
Operations/Technology/Vendor Approach
Strategic Thinking
System Logistics
•
Enhancements, Costs,
Timelines, Impact, Constraints
Customer Awareness
•
Education, Managed Expectations,
Delivery, Service
Funds Availability
•
Regulatory
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Compliance, Time Order Posting,
Reg E, NACHA Rules
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ACH EDI & Returns
Reporting Obligation
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Operational Processing
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Reconciliation
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Billing, Expectations, Reporting
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NACHA Phased Approach
•
Phase 4?
Future in Motion
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?
References & Links
https://www.nacha.org/content/same-day-ach
https://fedpaymentsimprovement.org/
https://www.theclearinghouse.org/press-room/in-the-
news/2014/10/20141022-tch-to-develop-real-time-payments-system
http://www.fasterpayments.org.uk/
http://www.apca.com.au/about-payments/future-of-payments/real-time-payments
http://www.euromoney.com/Article/3303735/Singapore-
closes-in-on-real-time-payments-as-Australia-prepares-for-mandate.html
Jared Ramsey, AAP VP, Operations Manager US Payments Services Division
TD Bank
Jared.Ramsey@td.com
Denise Grosso, AAP
VP, Sr. Lead Business Systems Analyst US Technology Solutions
TD Bank
Denise.Grosso@td.com
Laura Clary, AAP
Director, Product Management Payments Group
Fiserv
Laura.Clary@fiserv.com
Judith Dunn, AAP
VP, Projects Specialist Manager US Payments Services Division
TD Bank
Judith.Dunn@td.com
Emanuel "Manny" Evangelou VP, Sr. Business Systems Analyst US Technology Solutions
TD Bank
Emanuel.Evangelou@td.com
Thank You!!
Sally Dievendorf, AAP VP, Operations Manager US Payments Services Division
TD Bank