Centrix Solutions Inc. Western States Users Group Centrix Solutions Inc. ACH Risk.

Centrix Solutions Inc. www.centrixsolutions.com 402.488.3990

Western States Users GroupWestern States Users Group


ACH Risk Management&

Reg E Compliance

Let Centrix Simplify


Reg E Compliance


Brad Johnson – Director of Business DevelopmentEmail - [email protected]


AgendaAgenda

• PRIZE DRAWING• Omaha Steaks Gift Certificate ($100)

• ODFI - ACH risk management

• RDFI• Check & ACH fraud detection• ACH reporting for corporate clients

• Reg E Dispute Tracking

• PRIZE DRAWING

Originated ACH Payments

Task: Insure Originated ACH Activity is Valid

Risks: •Financial loss•Customer relationships•Reputation•Compliance

Challenges: •Multiple delivery channels (on-line / FTP)•Procedures are outdated (lack of automation)•Lack of diligence for security by clients•Smart, Smart Bad Guys!

Solution: •Layers of technology•Automation

Task: Insure Originated ACH Activity is Valid

Risks: •Financial loss•Customer relationships•Reputation•Compliance

Challenges: •Multiple delivery channels (on-line / FTP)•Procedures are outdated (lack of automation)•Lack of diligence for security by clients•Smart, Smart Bad Guys!

Solution: •Layers of technology•Automation

Real-time File Monitoring

Customer File Verification

Submission Calendar / File Scheduling

Data Validation

Account White Lists

CENTRIXCENTRIX

Payments Fraud Protection & Risk ReportingPayments Fraud Protection & Risk Reporting

Incoming Payments

Task: Insure check & ACH activity is valid

Risks: •Customer retention & acquisition•Financial loss•Reputation

Challenges: •Customer apathy “The bank will cover it”

Solution: •Technology•Automation

Task: Insure check & ACH activity is valid

Risks: •Customer retention & acquisition•Financial loss•Reputation

Challenges: •Customer apathy “The bank will cover it”

Solution: •Technology•Automation

ACH Positive Pay

ACH Filter/Block

Check / Payee / Teller Positive Pay

EDI Translation

Customer Returns Notification

CENTRIXCENTRIX






Data Validation

Account White Lists

Payments Data Warehouse

Bank Reporting

Board Reporting

Risk Assessment

Returns Analysis

Relationship Manager Reporting

Exposure Reporting

Bank Operations

Chargeback Processing

ACH Billing

NOC Processing

IAT / DNR Reports

Reg E Dispute Tracking

Incoming Payments

ACH Positive Pay

ACH Filter/Block


EDI Translation




ACH Risk Management


ACH Risk Management






Data Validation

Account White Lists


Centrix Payments I.Q. System

• Origination file validation

•

•ACH Risk Reporting

• Relationship Manager Dashboard

• Originator activity reports• Risk Assessment reports• Exposure positions

• ACH Calendaring• Detect fraud• Enforce originator agreements

Passed to PIQS Workflow

Passed to PIQS Workflow

Originated Files Received

Originated Files Received

VALIDATION RULESVALIDATION RULES

Company or Business Unit

Limits

Is it Scheduled?

SEC Codes

White List

Company or Business Unit

Limits

Is it Scheduled?

SEC Codes

White List

Warningsor

Errors

Warningsor

Errors

Alerts&

Overrides

Alerts&

Overrides

Centrix PIQS Processing FlowCentrix PIQS Processing Flow



ValidatedValidated

Statistical MetricsException ReportingOriginator Reporting

Statistical MetricsException ReportingOriginator Reporting

Corporate Clients

Corporate Clients Originated

ACH FilesOriginatedACH Files

IncomingFed File(s)IncomingFed File(s)


ACH File ValidationACH File Validation





Data Validation

Account White Lists



• File Validation•Multi-day exposure monitoring

• Temporal risk

• White list (valid receivers)

• ACH calendaring

• SEC codes

• Duplicate file check

• File integrity checks

•Auto balance control totals


• File Validation•Multi-day exposure monitoring

• Temporal risk

• White list (valid receivers)

• ACH calendaring

• SEC codes

• Duplicate file check

• File integrity checks

•Auto balance control totals


ACH Risk ReportingACH Risk Reporting


Reporting Considerations Relative to OCC 2006-39 | FFIEC Guidance | NACHA Rules

•Metrics and trend analysis on ACH volume, returns, operational losses and transaction types

•Summary of return rates by originator

•Unauthorized returns that exceed threshold 1%

•Metrics and trend analysis by originator

•Capital adequacy reporting



REPORTING

DEMO




SampleReport

(OCC | FFIEC)

SampleReport

(OCC | FFIEC)

DailyOriginationActivity

DailyInboundACH Activity



Originators who have an unauthorized return rate greater than X% (1%)

Originators who have an unauthorized return rate greater than X% (1%)



SampleReport

(OCC | FFIEC)

SampleReport

(OCC | FFIEC)



Summarizing origination activity by customer (files/items/dollars)

Summarizing origination activity by customer (files/items/dollars)


Risk Assessment FeaturesComing Q3 2012

• Risk assessment worksheet… beyond ACH• ACH, Deposits, Loans, RDC, etc…

• Auto calculate exposure limit adjustments• Approval workflow for risk limit adjustments• Relationship manager dashboard


Incoming Payments

ACH Positive Pay

ACH Filter/Block


EDI Translation



Check PositiveCheck PositivePayPay

ACH PositiveACH PositivePayPay

Client ACH Client ACH ReportingReporting

Exact/TMSby Centrix Solutions, Inc.

Incoming Payments

ACH Positive Pay

ACH Filter/Block


EDI Translation



Centrix Exact/TMS™

Check Positive Pay

• Payee match

• Teller positive pay

• Internal exception scrub

• On-line decisioning of exceptions

• Single signon from cash management


Check Positive Pay

• Payee match

• Teller positive pay

• Internal exception scrub


• Single signon from cash management

Incoming Payments

ACH Positive Pay

ACH Filter/Block


EDI Translation




ACH Positive Pay

• Pre-authorized originators (white list)• Valid SEC codes• Maximum amount

• Filter/block rules (black list)• Originator• SEC Codes• Transaction type rules (DR/CR)



ACH Positive Pay

• Pre-authorized originators (white list)• Valid SEC codes• Maximum amount

• Filter/block rules (black list)• Originator• SEC Codes• Transaction type rules (DR/CR)


Incoming Payments

ACH Positive Pay

ACH Filter/Block


EDI Translation




ACH Reporting for Clients

• EDI / Returns / NOC

• Auto delivery (web pickup) or automated email attachment


ACH Reporting for Clients

• EDI / Returns / NOC

• Auto delivery (web pickup) or automated email attachment

Centrix Solutions Inc. www.centrixsolutions.com 402.488.3990Centrix Solutions Inc. www.centrixsolutions.com 402.488.3990

Reg E Dispute Management

Debit Card | ACH | ATM

Reg E Dispute Management

Debit Card | ACH | ATM

Eliminate SpreadsheetsAutomate the Back Office

Simplify Compliance

Eliminate SpreadsheetsAutomate the Back Office

Simplify Compliance


How would you define your dispute management process?

How would you define your dispute management process?

• Simplify, streamline, automate• Eliminate paper, file folders & spreadsheets• Incorporate an audit trail

What would you like to do better?What would you like to do better?

……Clunky, you say?Clunky, you say?


Centrix Dispute TrackingCentrix Dispute Tracking

• Browser user interface for CSR input• Select disputed transaction and reason (no manual entry)• Transaction and customer data feed from core• Integrated dispute form(s)

• Back Office Review Queue• Produce form to submit to card processor or Visa/MC

• Timeline Management• Track dispute timeline for each type of transaction• Debit card | ACH | ATM


Centrix Dispute TrackingCentrix Dispute Tracking

• Auto post transactions• Provisional Credit | Charge Back | Charge off

• Customer Letters

• Contact notes (case management)

• Full audit trail

Centrix Solutions Inc. www.centrixsolutions.com 402.488.3990Centrix Solutions Inc. www.centrixsolutions.com 402.488.3990

PRIZE DRAWING

$100 Gift Certificate to Omaha Steaks

PRIZE DRAWING

$100 Gift Certificate to Omaha Steaks


Western States Users GroupWestern States Users Group



Reg E Compliance



Reg E Compliance


Brad Johnson – Director of Business DevelopmentEmail - [email protected]

Centrix Solutions Inc. Western States Users Group Centrix Solutions Inc. ACH Risk.

Documents

Transcript of Centrix Solutions Inc. Western States Users Group Centrix Solutions Inc. ACH Risk.