HORIZON ACH, EFT and integrated Card Management

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1 HORIZON ACH, EFT and integrated Card Management Managing Payment Innovation Heather Womack, Business Systems Analyst Patricia Herrera, Business Systems Analyst May 23, 2017

2 HORIZON Automated Clearing House (ACH) 2

3 Agenda Same Day ACH Phase 1 results Ready for Phase 2 Upcoming Roadmap Receive and Process Enhancements ACH Positive Authorization for FIS Bill Pay Return ACH Same Day ACH Translations Create and store information Date of Last Origination for ACH Companies Reject Misformatted Batches NACHA Rules Watch List DFI to DFI Messaging IAT Entries Date of Birth for Natural Persons 3

4 Same Day ACH Phase 1 Implemented September 23, 2016 New clearing windows Credits and Non-Monetary Funds availability by end of processing day Volume exceeded NACHA expectations What are you seeing? Revenue from incoming volume? Operational impact? Are you offering same day origination to your cash management clients? Phase 2 September 15, 2017 Debit transactions become eligible HORIZON ACH is ready, beginning on 9/15, debits will be handled like credits are today Utilizes the same controls and edits as credits no additional setup required Phase 3 March 16, 2018 Funds availability by 5:00 PM local time 4

5 ACH Roadmap Enhancements to Receive and Process ACH Files Offers enhanced processing for the receipt ACH files Multi-bank environments that receive commingled ACH files Allows for processing of ACH files in bank number order Reduces processing times by limiting the shuffling between bank libraries Allows for the creation of a Bank level Received File Detail Report Currently the AH0010P2 Received File Detail report is only generated at the System Level Unavailable to banks in a data center environment New, AH0015P3 Received File Detail report will be available at the Bank Level 5

6 ACH Roadmap cont d ACH Positive Authorization for FIS Bill Pay Enhanced ACH Positive Authorization to monitor FIS Bill Pay transactions FIS Bill Pay transactions all use the same Company ID ACH Positive Authorization uses Company ID in its decisioning process Unable to distinguish between a FIS Bill Payment to the phone company from the utility company Individual ID Number will be added as additional (optional) criteria in establishing an ACH Positive Authorization FIS Bill Pay assigns a unique Individual ID for each payee Company ID AND Individual ID will allow for monitoring of FIS Bill Payments 6

7 ACH Roadmap cont d Return of ACH Same Day Same Day ACH Rule affords the opportunity to expedite the return of ACH payments HORIZON ACH currently does not support the return of an ACH payment on or before the settlement date of the transaction Must wait until the day after the settlement date Enhances ACH processing to allow ACH payments to be returned from the incoming ACH warehouse Work with Incoming Warehouse and Exceptions modified to allow for an item to be returned If memo posted, reverse the memo post of the item marked for return Ensure items still in the incoming warehouse marked for return are included when the ACH return file is generated Ensure items returned from Incoming Warehouse are flagged properly so they appear in Work with Returns / NOCs as already being returned. 7

8 ACH Roadmap cont d Regional User Group Enhancements Modifications to ACH Translations Addition of an informational description field Allow the user to enter text regarding the translation, for example, who it is for or why it is being established Date of Last Origination for ACH Companies Modifications to track the date of last origination for ACH companies Updated each time a batch for the company is released from the outgoing warehouse Displayed on the Work with ACH companies list and BCR screens Inclusion on company BCR report New on-demand report listing ACH company daily limits, date last origination and last origination amount New month-end statistical report listing companies that had no origination activity for the month 8

9 ACH Roadmap cont d Reject Misformatted Batches Enhancement to reject at the batch level instead of the file level Modifications to the handling of batches that would be rejected by the ACH Operator (i.e. Federal Reserve) because of formatting issues Currently a misformatted batch affects the entire ACH file when received into HORIZON Potentially delays processing of valid batches Rejecting at the batch level will more effectively handle misformatted origination batches without impacting the processing of valid batches. Prevents batches that would be rejected by the ACH Operator from being sent Faster awareness of misformatted batches allows more time to obtain valid data for processing Misformatted batches will be visible from Work with Outgoing Warehouse and Validate Outgoing Warehouse Unique status description to identify these batches separately from SDS HOLD, Rejected and Suspended 9

10 ACH Watch List NACHA Rules Work Group Activities Monitoring for HORIZON Impact DFI to DFI Messaging Non-monetary ACH entries with addenda records that would be used between DFIs to request and subsequently respond to requests for information such as: Proof of Authorization Source documents (converted check copies) Written Statement of Unauthorized Debit Would require significant development to handle (incoming and outgoing) the new SEC code and format IAT Entries Date of Birth for Natural Persons Date of Birth is often used to clear OFAC screening matches, but must be requested manually from the ODFI Rule would revise two IAT addenda records to accommodate a date of birth for any originator or receiver that is a natural person. 10

11 HORIZON Integrated Card Management (icm) and EFT Patricia Herrera 11

12 HORIZON Card Management Compromised Card Processing Compromised Card processing is a vital Card Management feature helping you through the never-ending costly inconvenience of data breaches impacting your cardholders. A compromised card means that information (e.g., card number, name) may have been obtained by an unauthorized source. In most cases, the breach occurs at a location that accepts or processes card transactions (e.g., merchant terminals, transaction processors or phishing). Unfortunately, this type of fraud is rapidly on the rise. The Compromised Card feature offers you several options to manage fraud alerts by massissuing new cards and updating the compromised card to auto-close at your discretion.

13 What can the Compromised Card Tool Do for You? It can do many things to help your cardholders get new plastic in-hand as soon as possible. For example: Receives the alert file provided by FIS EFT Network Creates a cross reference file of old and new cards for review before committing to issuing cards Provides options to manage PINs and select expiration date terms to suit your institution policy Generates reports from the alert file, the cross reference file, for new cards and exceptions Creates the Card Account File for the FIS EFT Network to process and submit to the plastic producer Links the old and new cards; updates the old card with an auto-close date and compromised date Offers On-Demand or Batch transmission of the Card Account File with the ability to retransmit any Card Account File for any reason. 13

14 Compromised Card Job Maintenance Navigate To: Applications > Card Management Menu > Miscellaneous > Work with Compromised Card The table lists all the jobs and settings selected for each Product Type. The options help you manage the jobs as needed. 14

15 Compromised Card Cross Reference The Cross Reference screen displays the old and new card number along with the new expiration date based on the job control setting. 15

16 Compromised Card Job Controls You will need to specify: The Job Controls The New Card Controls The Old Card Controls The Transmission Controls conveniently display on the screen as informational only. The same Transfer Profile defined in Work With CAF Jobs is used to transmit the Compromised CAF. 16

17 Compromised Card History Highlight a Pending file and click Transmit File. Click on the Refresh button and the file information is updated. The Transmit File button will send the CAF to the network for processing. The Select button will open the file for viewing. The Disk File Name consists of the day of the month plus hour, minutes and (1) digit of the seconds of the Creation Date. The suffix X indicates no PIN salvage; the suffix P indicates PIN salvage. 17

18 Compromised Card View CAF You can highlight the file on the History screen and click Select to view the new card account records. Each card has (2) segments. The Action Codes define if PIN salvage applies or not. COMN indicates, no PIN salvage and COMP indicates PIN salvage is required. 18

19 Compromised Card Reports The Compromised Card process generates several reports to keep track of all compromised cards, new cards, and exceptions (cards not qualified for replacement). CA09000P1 - Received Compromise Card File Report Lists every card in the alert file and includes expiration dates, names, card statuses and exception messages, if any CA09010P1 - Card Number Generation Exception Report Lists compromised cards with specific conditions preventing a new card replacement, for example: Auto- Close Date exists Date Compromised exists CA09016P1 - Compromise Card Cross Reference Lists the old and new card accounts, Product Types, expirations dates, and cardholder names CA09039P1 - Reissued Compromised Card Report Lists the old and new card accounts, Product Types, expiration dates and auto-closed dates Corresponds to the Card Account Files transmitted to the network 19

20 Card Inquiry Old Card When the Compromised Card job runs, it automatically updates the old card with the Auto Closed date based on the number of days in the job controls. If the product type participates in rewards, the Transfer To field is populated with the new card number. Note: the Date Compromised field is updated as soon as the alert file is received by HORIZON. 20

21 Card Inquiry New Card When the Compromised Card job runs, it automatically creates the new card in icm s master card file. The new card is updated with the old card number in the Rel Card/PIN field and Transfer From field. If the old card has custom card limits and/or temporary card limits defined, the new card will have the same card limits. 21

22 Compromised Card What s Next? There is always room for improvements. Your suggestions and ideas help us to go from better to BEST! Future enhancements to improve compromised card processing include: Cross Reference Screen: Allow more than one card record to be deleted and generate a new report for deleted cards Clear the Date Compromised from cards deleted from the cross-reference Compromised Card Notice: Create a Compromised Card Notice template which can be customized with your cardholders information and more Enable the notice to be delivered through various channels Transmission Controls: Allow compromised card account files to use a different transmission profile than the daily Update Card Account File Card Account File History Screen: Reorganize the Card Account Files chronologically, latest to oldest instead of by file name 22

23 Card History Inquiry Multiple Completion Transactions Navigate To: Applications > Card Management Menu > Inquiry > Card Inquiry > Enter Card Number The fields for Multiple Completions on POS Pre-Auth transactions will be instantly updated each time a clearing transaction is received by HORIZON. As the Amt Cleared increases, the Amt Remaining is adjusted. HORIZON will count each completion (clearing) transaction as it is memo-posted = 1,

24 EFT Bank Controls Updating the Merchant ID POS Pre-Auth Controls File (ZMERID0P) Navigate To: Controls > EFT BCR Control Menu > EFT BCR Options > Work with Files > System Type ID = EFT > ZMERID0P The Merchant ID s or Categories can be defined as a single merchant or as a range of merchants. For example, the range covers all airline companies. The Allow Multiple Completions field must be Y (yes) to indicate HORIZON will track multiple completions or clearing transactions. The Threshold Remaining Amt and Percent fields are optional. 24

25 Logic will get you from A to Z; imagination will get you everywhere. Albert Einstein 25

26 Thank you Patricia Herrera Heather Womack