ACH-Echeck Use Case Scenarios/Q & A s

Transcription

1 ACH-Echeck Use Case Scenarios/Q & A s Electronic Check Service offers Check Conversion & ACH-Echeck (CNP-Check Not Present) Elavon offers ACH using the same processes and infrastructure as Electronic Check Service. Sometimes known as ACH-Echeck for CNP transactions accepted over the Internet, Telephone and Back-office for single, recurring and preapproved payment on accounts. ACH acceptance is limited to low risk payments where there is a known relationship between payee and payer. ACH will not be an option for ecommerce sale of goods & services. The following represents delivery options and guidelines for the use of initiated ACH consumer and business debits processed via the Automated Clearing House (ACH) Network. 1. What delivery options support ACH? Delivery Methods: Online Delivery o Converge/ API & UI o Direct Connect through Elavon specifications (3 rd Party Certification) Batch Delivery Elavon Specifications: ISO 8583 Encompass 4 v.4010 and/or above ECS Batch 2. What service levels support ACH? Conversion with Verification that the transaction is likely to be paid; the probability of payment is based on a negative risk Management database. 1

2 Conversion Only with no Risk service level. 3. What Elavon products support ACH & business functionality offered? Bill Payment & Presentment Portal (Bill Payment Portal-BPP or Enterprise Billing Solution-EBS) Converge Platform (API and UI) Payment Navigator and Transend Pay for healthcare ACH business functionality includes processing of an ACH debit initiated by a consumer & business for the following producttypes: WEB - recurring or single internet initiated entry processed based on a Customer s input of account information at a payment application website. TEL - recurring or single entry in which an electronic payment item is created based on a Customer s oral authorization captured via the telephone. PPD - recurring or single prearranged payment entry to a Customer s account pursuant to a written authorization that is obtained from the Customer. CCD - recurring or single debit entry is initiated by an organization to transfer funds to a Customer s account where there is a trade agreement between Corporations. (Debit Model Only). 4. How does Elavon customers take ACH payments online & are there any nuances? Elavon s customer must host their own website and authenticate their customer prior to initiating payment. They may either: develop their own Payment Page and use the Converge/ Gateway/API, use the Converge Hosted Payment Page, Use a hosted payment product such as BPP, EBS, or U.S. Bank E-Payment Service (for U.S. Bank only). With BPP or EBS, a customer provides a Billing Data Export File for or statement delivery to present to Users for payment and they will receive a Reconciliation (A/R) File to their accounting system to post payments. 2

3 If the Elavon customer opts for a Direct Connect (3 rd Party Certification) they would then host their own Website and Payment Page and process the transaction on-line as certified to the ISO or Encompass 4 Specifications. On-line transaction processing with the Conversion w/verification Service Level is the lead delivery method and product. Batch processing with Conversion Only Some customers may choose to host their website & Payments Page, accumulate transactions throughout the day and then at the end-of- day prepare an ECS Batch file for transmission to Elavon for processing. Customers using ECS Batch file delivery must provide their own Bank Routing Number validation prior to processing. Verification service level is not available for batch delivery. For all WEB entries customers must ensure that certain aspects of the transaction have been addressed in a commercially reasonable manner: verify the identity of the User, utilizing commercially reasonable methods of authentication employ a commercially reasonable fraudulent transaction detection system for each entry Establish a secure Internet session with each User utilizing commercially reasonable technology providing a level of security that, at a minimum, is equivalent to 128-bit RC4 encryption technology on customer s web browsers. Examples of 128-bit encryption are AES, DES, Double DES, Triple DES, or Skipjack. Use commercially reasonable procedures to verify that routing numbers are valid (at website and when processed thru ACH-Echeck account # structures are verified prior to processing thru the ACH Network. Customers to conduct annual audits to ensure financial information obtained from consumers/users is protected by security practices and procedures that include: o Physical security to protect against theft, tampering or damage o Personal and access to controls to protect against unauthorized access and use and 3

4 o Network security to ensure secure capture, storage, and distribution of consumer financial information. There are very specific policies and procedures for ACH outlined in the Electronic Check Service (ECS) Merchant Operating Guide current MOG resident on 5. How does customer take ACH over the phone? Elavon s customers may accept payments over the telephone (TEL), their representative must gather required information for entry into a system prior to processing, and they can either utilize their own entry system or enter MOTO payment on accounts using Converge, Enterprise Billing Solution, Bill Payment Portal, U.S. Bank E-Payment System (U.S. Bank only). Enterprise Billing Solution and U.S. Bank E-Payment Solution also support a hosted IVR module for a payer to call and listen for the amount they owe and submit a payment. Enterprise Billing Solutions also provides a Customer Service Representative (CSR) module to collect a payer s payment information to submit a payment on the payer s behalf over the telephone. 6. How does customer process pre-arranged payments? Prearranged Payments and Deposit Entries (PPD) are used for origination of ACH debits to a customer s account according to written authorization that is signed or similarly authenticated by the customer. The authorization must be readily identifiable as an authorization to initiate the ACH debit(s) and clearly state its terms and identify the customer s assent to initiating debits to their account. Customer s authorization must be retained for 2 years and merchant must provide a copy to their customers upon request. 7. How does customer process Corporate to Corporate payments? 4

5 A Debit model is offered: our customer (seller) will initiate debit transactions pulls funds from the buyer s account based on agreed upon special payment requirements prior to conducting business. Alternatively, an authorized representative of an owner of the account (our customer s customer) will initiate an online transaction similar to an online consumer bill payment. The range of payment terms and conditions should be covered in their trading partner agreement. The agreement will also specify the manner in which dispute resolution will be handed. Elavon s CCD format does not support remittance detail know as a CCD+ entry, nor does it support CCD credits which are commonly used for transactions such as payroll. Note that some businesses, particularly larger companies, have debit blocks on many of their accounts, in which case a debit that has been initiated will be returned as an unauthorized transaction. 8. I have recurring payments needs. What ACH product types support recurring payments? WEB, TEL, PPD, and CCD s support recurring transactions. CCD can be recurring if agreed upon in trade agreement between corporations. Converge, EBS, BPP, and U.S. Bank E-Payment Service (U.S. Bank channel only) all support ACH recurring payments. Converge also offers Installment Payments that allows for establishing # & $ amount of each payment which will suspend when full payment is reached as an example: 5 $20 every month A customer may also use their own proprietary or VAR solution to house recurring payments and process them through direct certification or the Converge API. 9. Are both ACH credit and debit transaction types supported? Elavon only supports debit transactions, which are typically used for one-time and recurring payments. Voids/reversals can be made within 30 minutes of the original transaction. Refund credits are not currently supported. 10. What types of ACH can customer do? 5

6 a. Can customer collect payments online? Yes b. Can customer collect payments over the phone? Yes c. Can customer collect recurring payments? Yes d. Can customer make refunds using ACH? No e. Can customer do disbursements (like student loan disbursements or payroll using ACH? No, Elavon does not support ACH credits/ disbursements. f. Can customer do B2B payments that require CCD addenda? No The CCD format is used when there is no need to exchange remittance information as part of the transaction. CCD+ is a format that includes addenda with additional transaction information such as invoice detail. Elavon does not support CCD+or CTX (Corporate Trade Exchante) transactions. 11. What questions should I be asking my customers that want to enroll in ACH-Echeck to adhere to Elavon and Industry requirements? The following questions will be on the Application and ECS Enrollment form for Bus Dev to address with their customers: a. What type of Payments will you accept using ACH-Echeck e.g. Utility, Bill Payments, Monthly Rent Payments, Monthly Billing for General Services? b. Will you obtain authorization from your customers prior to accepting an ACH entry in accordance with the ECS MOG e.g. orally via telephone or in writing for PPD, or on your payment page? c. Will you verify and authenticate the identity of your customers in accordance with the ECS MOG prior to initiating ACH entries for those customers e.g., obtaining customers name, address and telephone or using a database to verify the accuracy of the information provided by customer? d. Will you offer ACH-Echeck to existing or new customers? e. Will you maintain and disclose to your customers procedures for cancelling an authorization? f. Will you ensure that information regarding each transaction authorization entered by the customer and/or your service representative is accurate and not a duplicate transaction? 6

7 12. I am doing tokenization and P2P encryption. How does this relate to ACH? ACH does not support tokenization and P2P encryption at this time. Converge has tokenization on their roadmap for ACH. 13. What is the process if an ACH item is returned due to Insufficient Funds (NSF)? NSF Resubmission defaults to 2 attempts. However, at time of setup, the customer may choose 0 or 1 should they prefer to receive the return sooner to take action dependent on their business model. 14. Are their additional options for Returned items, such as Service Fee processing and Collections? For consumer transactions (WEB, TEL, and PPD product types) and for business transactions, (CCD product type), if agreed upon in Trade Agreement NSF Service Fee Processing is offered. The default fee is $15. For customers with transactions initiate within their own state, they may then select state maximum allowed. Prior to collecting any NSF fee on customer s behalf, customer must instruct Elavon on the amount of the fee to be collected and post appropriate conspicuous notices on Website, Invoices, Trade Agreements and/or receipts applicable to laws. Customer is fully responsible for ensuring that all NSF service fees and related disclosures and permissions obtained from their customer comply with applicable law. Elavon will make one attempt at collecting NSF service fee on behalf of our customers. Collection Service is not offered with ACH-Echeck. 15. Are Convenience & Service Fees available for ACH-Echeck? Yes, if customer opts for a Direct Connection and certified to Elavon Specifications, EBS or U.S. Bank E-Payments Service (U.S. Bank Only). Yes, if customer opts for Converge they may setup multiple fees as a customer field in the API and UI and handle the calculation on the amounts. Converge does not 7

8 break the fees our nor does it send them in separate requests. The API is more flexible to build a computations system, the UI is limited.. Convenience Fees: The convenience fee must be the same for all payments (V, MC, Discover, AMEX, ACH-Echeck and ECS) within a particular payment channel (mail, phone internet). If VISA is being accepted it has to be a flat fixed rate and the customer must provide a true convenience in the form of an alternative payment channel outside the customer s customary face-to-face payment channel. Service Fees: Qualified government and education verticals may assess a service fee which may be applied to all card types accepted within the channel. The fee structure can be fixed flat, fixed percentage or variable rate and not required to be assessed on cash, ACH or ECS transactions. Note: For pre-sale inquiries please contact Sales Support. 16. What account validation, fraud and risk tools are available with ACH? Because Elavon leverages the Electronic Check Service infrastructure for ACH, on-line transactions will pass against the ECS Historical File with 10+ year s accumulated activity prior to processing a transaction to perform a validation on the ABA Bank Routing number & Account # structure in real-time. If the transaction does not pass the validation, the ABA or Routing # could be fraud or incorrectly entered, the item will be rejected. If Conversion w/verification service level is chosen, an authorization message is routed to an Elavon s Authorization Agent for verification that the transaction is likely to be paid. The probability of payment is based on specific account information at the time of the request. An Approved or Decline decision is issued based on the risk management database (Negative File). Customer retains the risk for all transactions processed, including those that are returned notwithstanding receipt of an Approval decision. 17. How can I assure accurate Consumer & Merchant Limits are established for ACH-Echeck, payment on accounts? 8

9 To assure efficient and uninterrupted processing there are a few best practices to follow at the onset when setting up a new customer: 1) Merchant Limits are established from the information gathered on the Application or ECS Enrollment form. There are questions regarding customer activity and limits which will establish the Merchant $ Limit. If a customer s business model require they periodically accept a higher- than- average $ transaction, that should be noted in order to go into the Merchant Limit Calculation. EX. $500,000 Annual Sales with $50 Average ticket sales, however, once a month customer receives a $5,000 check for a tax payment. 2) Consumer Limits are based on X# of checks per day from the same consumer/account and allowing X# of checks per 7 day rolling period. Knowing that (1) consumer or check from (1) account could be accepted in one day is important information to appropriately establish consumer limits. EX. Medical Provider could accept 5+ checks in one day from one insurance company. EX. Govt. County could accept 20+ checks from one Business Manager in one day to pay property taxes. Utilize the Notes To Credit section on the Application or ECS Enrollment form as this information is important for Underwriting when establishing appropriate Merchant $ Limits & Consumer Velocities for customers. Otherwise, once the limit or velocity is tripped ECS processing will systematically cease and create a disruption to business processing. 18. What Reporting Tools are available for ACH-Echeck? ACH-Echeck activity is reporting on MerchantConnect and the EnQuire Reporting Tool which will follow transaction activity thru the processing cycle with Bank information provided. Standard & Custom ACS files are also available. 19. What is the relationship between ECS and ACH? ACH is the Check not Present equivalent of ECS, using only the bank routing number and account number from the bottom of the check for processing. They are processed using the same infrastructure, and share these features: Next-day Availability ECS & ACH activity reflected on MerchantConnect and EnQuire Reporting tools. 9

10 For Tier 1 & high-revenue generators Corporate Management Reports are available. ECS & ACH seamless Returns Management is available: customer remains financially whole through the resubmission process until deemed fatal. (This is a competitive advantage over many other services). ECS & ACH activity is consolidated into one Monthly Invoice representing all customers electronic payment types. However the following nuances exist: Conversion Only and Conversion w/verification are available for both transaction types; however Conversion with Guarantee is only available on ECS. ECS offers Collections Services, ACH does not. 20. Reference Materials: Electronic Check Service Merchant Operating Guide (MOG) Electronic Check Service Primer ECS paper conversion & ACH-Echeck check-not-present developers guide for Directed Connect/Certifications, available under NDA when a Solutions Engineer/Designer is engaged (under development, available 1Q 17) Converge Support documentation including Developers Guide is located on the Converge website under the resource and documentation section Converge Demo Converge Production NACHA Operating Guidance, Rules & educational materials The Federal Financial Institution Examination Council (FFIEC) Guidance Provides risk management processes and recommended best practices 10

11 Alliance Sales Pricing Guide & U.S. Enterprise National/Middle Market/Govt. Sales Pricing Guide ETC Product Marketing Folder/Electronic Check Service Folder ETC Road to Success 2.1 Speedway curriculum Velocity Limit changes / Refer to Relationship Services they will forward request to OKC: 11