electronic banking ach or icl n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Electronic Banking ACH or ICL? PowerPoint Presentation
Download Presentation
Electronic Banking ACH or ICL?

Loading in 2 Seconds...

play fullscreen
1 / 28

Electronic Banking ACH or ICL? - PowerPoint PPT Presentation


  • 591 Views
  • Uploaded on

Electronic Banking ACH or ICL?. In-House vs. Out-Source Payment Processing. Utility Payment Conference. Electronic Banking ACH or ICL?. Arizona Public Service (APS) is Arizona’s largest and oldest utility, serving since 1886

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

Electronic Banking ACH or ICL?


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
    Presentation Transcript
    1. Electronic Banking ACH or ICL? In-House vs. Out-Source Payment Processing Utility Payment Conference

    2. Electronic Banking ACH or ICL? • Arizona Public Service (APS) is Arizona’s largest and oldest utility, serving since 1886 • More than 1.1 million customers in 11 of the state’s 15 counties, about 35,000 sq miles • Current Payment Processing Distribution: • 55% Electronically • 35% US Mail • 10% Business Offices

    3. Electronic Banking ACH or ICL? In-House or Out-Source? Our Considerations: • Current system was 13 years old • Mailed-in payments dropped from 72% to 38% of total payment volume between 1990 to 2008, but still significant • Replace armored car pickup with electronic banking • Leverage technology to process more than payments; anticipating continued payment volume decrease • Centralize data input to better utilized skilled customer service representatives to address customer needs

    4. Electronic Banking ACH or ICL? Options Banks Non-Banks • JP Morgan Chase - CDS Global • Wachovia - Regulus Group • Bank of America - First Data Corp • Wells Fargo In-House • BancTec (Unisys) • Wausau Financial Systems • J & B Software

    5. Electronic Banking ACH or ICL? Quantitative Results Outsourcers: • Competitive process pricing for: • singles • clean payments • Less competitive pricing for: • non-clean payments (white mail, checks only) • exception payments (research, correspondence) • non-payment transactions

    6. Electronic Banking ACH or ICL? Quantitative Results In-House: • Over an 8 year period projected payment processing costs were competitive • Advantage is gained in managing exception transactions

    7. Electronic Banking ACH or ICL? Qualitative Results Out-Source Advantages • As volume decreases over time so would costs • Technology remains current • Built-in Disaster Recovery

    8. Electronic Banking ACH or ICL? Qualitative Results In-House Advantages • Maintain control of customer data • Same day exception processing (Customer PR) • Timely exception transaction processing • Reduce costs by leveraging technology for non-payment transactions

    9. Electronic Banking ACH or ICL? Decision In-House with Wausau Financial Systems • System was justified on payments alone • Non-payment transaction processing was icing on the cake! • Ability to capture and store non-payment images at the Customer Account level • Timeliness and control of postings • Automation of Non-Payment processing leverages the technology and improves accuracy and performance

    10. Electronic Banking ACH or ICL? Banking Options Automated Clearing House (ACH) Vs. Image Cash Letter (Check 21)

    11. Electronic Banking ACH or ICL? RFP for ACH/ICL Services • Submitted to 3 banks • JP Morgan Chase • Bank of America • Wells Fargo • Assumptions • Compare using Bank vs. APS decisioning • Percentage of ARC Eligible Items 80.0% • Percentage of ICL Eligible Items 8.0% • Percentage of IRD Eligible Items 12.0%

    12. Electronic Banking ACH or ICL? Bank Results * Banks in no particular order

    13. Electronic Banking ACH or ICL? Bank Decision • APS will perform decisioning to control costs • We chose all 3 banks to: • Maintain our relationship with each Bank • Keep competitive pricing in play • Overall projected annual savings $57,000

    14. Electronic Banking ACH or ICL? Major Project Initiatives • Configuration & changes of WFS System to our needs • Testing with each Bank for ICL and ACH files • Enhancements to APS Customer System for multiple payment files and non-payment transactions • Leverage new B2B processes

    15. Electronic Banking ACH or ICL? Payment Transactions • Single Check, Single Stub • Multiple Checks, Single Stub • Single Check, Multiple Stubs • Multiple Checks, Multiple Stubs • Checks Without Payment Stubs • Accounts Receivable Lists • Money Orders • Process bank NSF Files and systematically reverse payments

    16. Electronic Banking ACH or ICL? Payment Transactions • All payments are compared to Hot Files for: • Cash Only Id and Rejection • Pending Shut Off Orders • ARC Opt-Out (Process as Image)

    17. Electronic Banking ACH or ICL? Non-Payment Transactions • SurePay, SHARE Pledges & E3 Low Income Enrollment • from Bill Stub (marksense detection) • from Application form (full page scans) • Undeliverable Refund Checks and Bill Statements • Change of Address (marksense detection) • On-Demand Images for CIS at Customer Account level • Systematic Customer Account Note Updates

    18. Electronic Banking ACH or ICL? Bill Stub Samples SurePay on Page 2 Address/Phone change Based on mark sense detection

    19. Electronic Banking ACH or ICL? SurePay Application

    20. Electronic Banking ACH or ICL? Share on Stub Name Address City, State, Zip

    21. Electronic Banking ACH or ICL? Share Card

    22. Electronic Banking ACH or ICL? E3 Application

    23. Electronic Banking ACH or ICL? E3 Recertification

    24. Electronic Banking ACH or ICL? Lessons Learned • Bank Validation Process takes time • ACH and ICL are different groups within each bank • “To thine own system be true” • Test, Test, and Test some more • Include all interfaces • Include all jobs, even if you think they do not apply

    25. Electronic Banking ACH or ICL? Results Since Installation Deposit Distribution Percentage of ARC Eligible Items 78.9% • 2,157,904 checks Percentage of ICL Eligible Items 21.0% • 573,249 checks Percentage of Paper Checks 0.1% • 3,026

    26. Electronic Banking ACH or ICL? Results Since Installation Non Payment Transactions SurePay 28,044 • Back of Bill 8,000 • Applications 20,044 E3 Low Income 103,504 CIS Refund Checks 11,369 Returned Mail 103,731 We met our Financial Goals

    27. Electronic Banking ACH or ICL? Q & A

    28. William Dow Sr. Project Manager Arizona Public Service 602-250-2110 William.dow@aps.com