International Payments Made Easy! Richard Ransom Payments Product Marketing Manager EMEA

Transcription

1 International Payments Made Easy! Richard Ransom Payments Product Marketing Manager EMEA

2 Agenda Bacs payments are easy Typical international payments today - the problem with international payments Three things to consider Leveraging SEPA Consolidation Bank connectivity The Future Payment Services Directive

3 Bacs Payments = Easy ERP Payroll Originating Bank Accounts LocalBank Regional Bank Bacs Software UK Beneficiary Banks LocalBank Regional Bank ERP GLOBAL BANK GLOBAL BANK

4 Typical Organisation s International Payments Today Originating Bank Accounts E-Banking Platforms Beneficiary s Bank ERP LocalBank No file upload Manual input? LocalBank $ Payroll Banque Régional BQRGPA Proprietary Format from Payroll convert to ISO20022 Banque Régional HK$ $ ERP GLOBAL BANK Proprietary Format Insecure file upload GLOBAL BANK HK$

5 The Problem With International Payments Multiple processes for administration, data entry, and approval Diverse processes for domestic, international, euro payments Extensive training on multiple workstations and message formats Limited visibility into daily and historical transaction information Maintaining proprietary interfaces Multiple file formats for input depending on bank Proprietary bank systems not capable of secure bulk file upload

6 How do I make my International Payments more secure, efficient, and controllable? 3 things to consider SEPA Payment Hub Bank Connectivity

7 euro payments SEPA

8 SEPA Characteristics Features: Credit Transfer and Direct Debit Demographics 34 countries 517 million citizens 19 Eurozone 15 Non-Eurozone (+ Andorra next year) Next day payments Consolidates multiple schemes into single scheme, single rules Credits Consolidates multiple DD schemes into two schemes Core & B2B Banks and businesses must accept/send SEPA transactions Standardise bank charges - low value transactions in SEPA area treated as domestic Consolidate bank accounts and relationships across Europe Use of IBAN (International Bank Account Number) Use of BIC (Bank Identifier Code) to disappear by Oct 2016

9 Who Is Affected By SEPA And When? Who s affected? Examples Organisations (including UK groups) with accounts or operations in eurozone making euro payments and / or DDs Organisations with accounts only in UK and / or noneurozone countries for making euro payments Organisations with accounts only in UK and / or noneurozone countries for making euro DD collections from eurozone accounts SEPA migration end date 1 August October August 2014 But before concluding SEPA is still a way off for UK, consider: The sooner organisation s migrate to SEPA instruments the sooner the benefit of domestic pricing on euro transactions UK organisations customers and suppliers in eurozone have already adopted SEPA before UK deadline SEPA transactions from Benelux domiciled accounts are free!

10 Collecting Direct Debits in Europe SEPA Core and B2B Core can be used for any DD B2B Business to Business only Core Scheme The Debtor is entitled to obtain a refund no questions asked of an authorised Collection by request to the Debtor Bank during a period of 8 weeks after being debited The Debtor is entitled to obtain a refund of an unauthorised Collection by request to the Debtor Bank during a period of 13 months after being debited B2B Scheme The Debtor is not entitled to obtain a refund of an authorised Collection The Debtor is entitled to obtain a refund of an unauthorised Collection by request to the Debtor Bank during a period of 13 months after being debited, when he considers that the Collection is not covered by a Mandate

11 Consolidating Payment Channels In A Hub

12 Why Consider A Payments Hub? Originating Bank Accounts E-Banking Platforms Beneficiary s Bank $ ERP Payroll ERP LocalBank Banque Régional BQRGPA GLOBAL BANK No file upload Manual input? Inefficient processes Air Proprietary Format Gap from Payroll convert to Risk: ISO20022 Errors Fraud Proprietary Format Insecure file upload LocalBank Banque Régional GLOBAL BANK HK$ $ HK$

13 Using A Centralised Payment Hub Browser Based UI Workflow Manual Data Entry Dashboards Consistent view Security ERP Payment Hub Bank Connectivity HR Validation Formatting Workflow DD Management Documents Cheques Cross border payments SEPA SWIFT In-country payments Cash reporting

14 Benefits Of A Payment Hub For International Payments Implementing a Payment Hub will help your organisation: Streamline multi-bank connectivity for multiple payment types Improve visibility of bank accounts globally Reduce processing costs and raise straight through processing Minimise fraud and operational risk Provide efficiencies in audit, entitlements, segregation of duties & compliance Reduce the operational burden on your IT & Infrastructure Drive business growth

15 Bank Connectivity Choices

16 Options For Connecting With My Bank For International Payments Option: Manual Entry: One e-banking solution per bank File Upload: One e-banking solution per bank Host to Host: One solution per bank SWIFT One bank agnostic solution Suitable for: Very low volumes Single banked Higher volumes Single banked High volumes Multiple payment types One main bank High volumes Multiple payment types Multiple banks Care Inefficient Error / Fraud potential Training overhead Management of bank specific devices Inefficient Error potential Training overhead Management of bank specific devices File formatting Bank specific file formats Management of proprietary connectivity Authentication Onboarding SWIFT specific & bank specific file formats Bank onboarding Extra transaction costs

17 The Future PSD2

18 What Is Payment Services Directive 2? The PSD2 is the latest Directive from the European Commission, Following PSD1 in 2007 Introduces more competition in the European Financial Services market Introduces the concept of organisations acting as Third Party Processors (TPP) connecting to your bank with your permission providing: Payment Initiation Services (PIS): Check your bank balance, launch a payment Account Information Services (AIS): Provide balances and transactions Through an Application Programming Interface (API)

19 Summary

20 Summary There is no Bacs for international payments, however You can make your international payments more efficient by: Ensuring you are utilising the best payment type for the beneficiary s location and how fast they want to be paid? Consolidating multiple channels to give visibility and consistency to your processing? Looking at your European customers would SEPA DD be an option? Evaluating how you connect and send data to your bank or banks

21 Questions? Customer Conference 2015 Powering and Protecting your Payments

22 Thank You! For more information, please contact: Learn More Online: