unlocking the secrets of ach origination and … · unlocking the secrets of ach origination and...
TRANSCRIPT
UNLOCKING THE SECRETS OF ACH ORIGINATION AND PROCESSING
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Unlocking the Secrets of ACH Origination and Processing Kevin Moland, Senior Product Manager David McDaniel, Senior Product Manager
July 10, 2012
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©2011 Jack Henry & Associates, Inc. All Rights Reserved.
Agenda
• Introduction and Welcome • Acquiring ACH Transactions (ACH Client)
– Tailor ACH online services to meet each originator’s needs – Provide a wide array of transaction management tools – Offer unparalleled ACH security options
• Processing ACH Transactions (ACH Manager) – Grow your ACH business without burdening staff – Industry-leading exception processing and research tools – Protect your FI and your customers against risk
• Q & A
©2011 Jack Henry & Associates, Inc. All Rights Reserved.
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ACH Client/RDX – A Combined Solution
Transaction Types
• ACH Client supports: – Direct deposit of payroll, direct billing, and other prearranged
payments/deposits (PPD) – Business-to-business payments and corporate transfers
(CCD, CCD+, CTX*) – Electronically authorized pmts (TEL, WEB) – Check conversion (ARC, BOC, POP, RCK) – International payments (IAT) – Other payment types (ENR, CIE)
Categories
• ACH Client is tailored for each originator by creating categories that act as independent transaction “buckets”
• Additional configuration settings can be controlled by the FI or, if the FI allows it, by the business themselves
• Categories can be created from scratch or copied from existing templates
Categories and User Security
• User authorities are established independently for each category, providing a very flexible security model
©2011 Jack Henry & Associates, Inc. All Rights Reserved.
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The User Experience
• Users don’t have to understand concepts like SEC codes or batches because ACH Client does that work for them!
• Users see only the categories they have authority to use • Users can set their own “home page” within the
application, allowing them to always land on the page where they do most of their work
• ACH Client supports both English and Spanish, including full translation of all screen elements, warning/error messages, reports, help and e-mail alerts
Acquiring Transactions
• ACH Client allows users to produce ACH transactions from any of these sources: – NACHA-formatted ACH files – Fixed-length/delimited files – User-entered templates – Scanned checks conversion – Web service calls through EPS
• Within ACH Client, users can quickly and easily create translation maps for proprietary file formats
• Fixed-length or delimited files may also be used to update user-entered transaction templates
Managing User-Entered Transactions
• Users may create custom list views based on criteria and/or sorting patterns, hide or reorder columns, etc.
• Users can edit transactions one at a time, manage multiple transactions simultaneously, or change selected fields for groups of transactions with a single command
Transaction Scheduling
• Transactions can be: – Reusable templates, with no specific schedule – Scheduled recurring transactions with dates that
automatically advance, but require user approval for each submission
– Standing orders, processed automatically on each scheduled due date
• ACH Client allows creation of simple or complex schedules, allowing multiple calendar options to be condensed into a single schedule
Split Transactions
• Split transactions divide a single payment between two or more target accounts (at the same or different financial institutions) based on: – Percentages, such as: 80% checking, 15% savings, 5%
college fund – Amounts, such as: First $1,500 checking, next $250 savings,
remaining balance to college fund • It’s not uncommon for businesses with the capability to
create their own ACH file to opt to use transaction templates in ACH Client so they can utilize the split transaction function
Exporting Transaction Data
• Users may export transactions into QuickBooks • Users may also create custom export formats so that
they may funnel transaction information to other accounting systems or programs
• Export files may be launched manually, or the system can launch files automatically during key processing steps
• Log information may also be exported so security officers can more effectively review system activity
Alerts
• ACH Client provides a wide variety of FI-facing and business-facing processing and security alerts, which can be event-based or condition-based
Electronic Tax Payments
• ACH Client supports all addenda-based electronic tax payments, including EFTPS and other federal tax payments, state tax payments and local tax payments
• New addenda formats can be created by the Support team for each taxing authority without new programming!
International ACH Transactions
• ACH Client allows origination of inbound and outbound International ACH Transactions (IATs)
• Simplified data entry options reduce key entry to a single page
• ACH Client is used by some of the Fed’s largest IAT producing FIs
• ACH Client provides a robust buffet of security measures
Security Measures
MFA: Adaptive Authentication/Tokens
IP Address Whitelisting
Day/Time Controls
Security Alerts
User Permissions and Limits
Dual Control
Duplicate Detection
Merchant Daily Amount Limits
Transaction Review
ACH Manager
New Recipient Validation
Transaction Monitoring with Anomaly Detection
Processing Alerts
Administration Security Measures
• Multifactor Authentication – ACH Client allows FI users to utilize the
same token solutions as those available for customer/member users
• Dual Control for Profile Changes – ACH Client also offers the ability to require a
second administrator to approve changes in user limits/permissions before they take effect
• Security Alerts – ACH Client provides security alerts that notify
FI users when customer/member users are disabled or removed from the system
MFA: Tokens
Security Alerts (ACH/RDX)
Dual Control
Summary
• ACH Client: – Allows you to tailor your solution to the needs of each
individual originator, simplifying the user experience and providing a variety of channels through which transactions can flow
– Supports a variety of transaction types, providing users with robust transaction management tools
– Offers a wide range of optional security measures so that FIs can choose the appropriate options based on the needs identified in their risk assessment
– Can expand your ACH horizons and help you set your sights on a whole new class of originator!
What is ACH Manager?
Why Use ACH Manager?
• Originator file aggregation • ODFI and RDFI processing • Warehousing of transactions
– Exception processing – File, batch and item reversals
• Risk management – Temporal and operational risk mitigation
• Automation – Eases burden of volume growth
• NACHA Rules compliance
Exception Processing Made Easy
• Strong research tools – Robust search capability – Create returns, NOCs, reversals, etc. – Easy-to-follow audit trail
©2011 Jack Henry & Associates, Inc. All Rights Reserved.
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Highly Configurable Risk Management Tools • Temporal risk tracking
– Tiered originator and originator profiles • Manage risk at both levels • Risk tracking across multiple settlement dates (NACHA rule) • Two-stage debit return risk • Control offset accounts
Risk Management
• Files/batches exceeding set limits: – Stop for review (top image) – Must be approved by authorized personnel – Click icon for clear processing warnings
Risk Management
• Restrictions by company – Limit SEC codes use – Limit item and file amounts: debit and credit
• Originator schedules – Files expected – Files received and processed
Automation
• Load files automatically – Only work exceptions (repair queues)
• Merge files for efficiency/cost reduction – Originator, incoming and output files
• Master Console – Overview at-a-glance – Origination schedule
Master Console
Displays all daily functions including:
• Today’s Activity • Held Batches • Pending Approvals
• Pending Analysis Files • OFAC Matches • Origination Schedule
Compliance
• NACHA Rules compliance – Files validated prior to submission – Configurable processing options – Return ratio report
• Automatic NACHA Rules updates – No upgrades required
• User and system audit capture
Highly Configurable Processing Options
File Validation
Secure Hosted Environment
• Fully-redundant SSAE 16 secure JHA hosted facility – All system updates are applied for you – ProfitStars handles disaster recovery of the system – Communication is secure
• Uses 128 bit SSL (secure sockets layer) • Secure FTP for file delivery • Adaptive authentication with tokens • Locked down by I.P. address
• Robust data and user security
Segregation of Duties
Summary
• Allows financial institutions to manage growth without increasing staff
• State-of-the-art temporal risk tracking protects the FI against default risk
• Eases pain of research and exception processing • Helps keep your financial institution in compliance with
The NACHA Rules
Questions?
For more information contact: [email protected]