Samantha Carrier. May 4, 2009

Transcription

1 Secure Vault Payments Samantha Carrier Senior Director NACHA May 4, 2009

2 Agenda What is Secure Vault Payments and How Does it Work? FI Opportunity Where is the SVP Pilot today? SVP Demand in Niche Markets Colleges and Universities Demo

3 Introduction to NACHA Not for profit association Owned by banking industry Establishes operating rules -ACH - Public assistance programs QUEST Rules

4 What is SVP? SVP is an alternative payments py solution Allows a banks consumer customers to push payment via an ACH credit to the merchant/biller utilizing the online banking platform FI remains the trusted payment provider for its consumer customers, as no financial data is shared with the merchant/biller that offers SVP Creates new revenue opportunity for FIs Provides authorized ACH Credit payment for the Merchant/Biller

5 How It Works Consumer shops or pays a bill at participating merchant or biller website Consumer proceeds to checkout Consumer selects SVP as payment method (no enrollment required) Consumer selects their bank Consumer is sent to their bank website Consumer s bank verifies SVP payment token Authenticates consumer Authorizes the payment py Consumer s returns to merchant or biller receipt page Consumer s bank sends CIE ACH payment for purchase or bill payment next day

6 ROLES In every SVP transaction there is an authenticating/authorizing bank. This is the Originating Depositor Financial Institution (ODFI), where the consumer s on-line banking is conducted There is also a sponsoring bank. This is the Receiving Deposit Financial Institution (RDFI) and is the merchant or billers bank where the funds are sent The ACH Credit payment is transmitted between the two financial institutions SVP Switch services are provided by ewise Systems Merchant/Biller FI compensates the consumer s FI for authentication, authorization, and ACH credit origination

7 SVP and New Initiatives in ACH Emerging trends in ACH have common themes: ACH Credit Payments Lower risk than debit Financial institutions at the center of their consumer customer transactions The electronic marriage of information and payments Data Protection - Consumer account information remains private

8 SVP Business Case Summary Secure Vault Payment Fees Bill Payment SVP Bill Pay 50 per trans 01 Nacha Pilot Fee 06 max. Switch Fee Service Providers Purchases SVP Purchases 1.35% of trans amt 01 Nacha Pilot Fee 06 max. Switch Fee Service Providers

9 ecommerce Growth Javeline Research Slide 3

10 Market Demand for Authorized ACH Credit Payments Significant ifi Interest t for SVP in Niche Markets Higher Education Charitable Organizations SVP provides payment alternative that removes paper, reduces fraud, eliminates costly exceptions through good funds model

11 Higher Education Wants SVP More than 50 colleges today and growing More than 50 colleges today and growing Brigham Young University Eastern Washington University Georgia Board of Regents UGA first live University of California (system) Berkely, Davis, Irvine, LA, Merced, Riverside, San Diego, San Francisco, Santa Barbara, Santa Cruz University of New Mexico University of Wisconsin (system)

12 Challenges Within Bursar Office The cost of paper checks for payments Challenges of credit/debit cards on-line PCI compliance Cost of accepting credit cards, roughly 2% of transaction Convenience fees Visa is not accepted Additional cost for parents and students ACH echeck products College must protect data NSF s s, Key Entry Errors Parents, students not comfortable providing checking account info on-line Cost of bad ACH transactions drives up the overall cost of ACH significantly 12

13 Alternative Payments On Campus A successful alternative payment brand for colleges must have the following Clearly identifiable value proposition to both students and college Easy to use Greater security than traditional credit/debit cards No PCI requirements Strong organization behind the product NACHA and Secure Vault Payments meet these needs 13

14 SVP Applications Other potential applications include: Bookstore Athletics Health care Event tickets Parking tickets 14

15 Also found SVP Demo

16 University of Georgia University of Georgia Bursar's Office

17 University of Georgia University of Georgia Bursar's Office

18 University of Georgia University of Georgia Bursar's Office

19 University of Georgia Bursar's Office

20 University of Georgia Bursar's Office

21 University of Georgia Bursar's Office

22 University of Georgia University of Georgia Bursar's Office

23 How do I offer SVP today? Third Party Providers TouchNet SallieMae 23

24 Need More Information? Contacts: George Throckmorton, Samantha Carrier, securevaultpayments.org

25 Questions