Payment Exceptions

Ken Millerd – Eversource - Manager, Remittance Processing & Bill Print

Pat Naples – PSE&G _ Manager, Remittance Processing & Revenue Integrity

Payment Exceptions

• Eversource & PSE&G’s payment exception experience with M&A

• Exceptions are increasing• Look-ups are labor intensive and prone to

misapplied payments• According to a NACHA benchmarking study

exceptions are 2-3 times more common for payments made through Banks/Aggregators

Payment Exceptions

• Primary source of exceptions are the credit “push” payments originated from banks and 3rd party aggregators

• According to the NACHA study there were an estimated 130 million exceptions in 2011 that costs the industry $720 million

• An estimated 61.8 million (47%) were originated as ACH payments (doesn’t include drop to check volume)

• 98% of all ACH exceptions were due to incorrect/missing account numbers

• One off solutions (e.g. scrub files) can work, but often require multiple bi-lateral agreements/contracts, manually intensive and lack standardization

Payment Exceptions

• NACHA has developed a Bill Payment Exception opt-in program (contact Robert Unger, Sr. Director NACHA runger@nacha.org – 703-561-3913)

• Bill payment originators would be encouraged to use ACH CIE transactions with BPE addenda records that include bill payer info (name, address, etc.)

• The CIE would be in lieu of dropping to check for non-conforming payments

• Billers would need to send an NOC/C09 entry to the originator to correct subsequent payments