|
Arm Your Frontline Staff With ACH Training
By Ian Macoy, Sr. Director, Member Communications, NACHA – The Electronic Payments Association
The Automated Clearing House Network isn't just about Direct Deposit anymore. New e-check applications for non-recurring consumer debits are
now available in the marketplace and are being adopted by financial institutions, merchants, billers and consumers. With the expansion of the Network to these applications, financial institutions are fielding
more and more customer inquiries in their branches and call centers. A customer service staff well trained in the basics of the ACH Network is therefore more critical now than ever before. The implementation of a
training program that includes ACH Network fundamentals represents an investment with results that flow directly to the bottomline. Fortunately, the opportunities for such training are plentiful, convenient and
cost-effective.
To put into perspective the magnitude of this training need, consider the potential for rapid adoption of Accounts Receivable Conversion (ARC) by
companies and financial institutions. In the very near future, consumers are expected to experience this form of check conversion in increasingly large numbers. The TowerGroup, for example, projects
annual ARC volume of 6 billion by the Year 2007.
For the most part, consumer acceptance has not been a barrier to the adoption of ARC and other e-check applications. However, financial
institutions should not assume that this will continue to be the case, as a greater percentage of their customers begin to use e-checks or experience check conversion for the first time. The ability to respond
knowledgeably to customer inquiries regarding e-check applications will be an important contributor to customer acceptance of these transactions and to goodwill on the part of their financial institution.
The Importance of Training and Education
Employee training and education are reliable tools companies can use to retain their edge over the competition, according to data collected by the
American Society for Training and Development (ASTD). ASTD found that of 575 publicly traded firms reviewed between 1996 and 1998, those that invested $680 more in training per employee than the average
company, improved their total stockholder return by 6 percent -- even after other factors were considered.
The ASTD study concluded that an employer's commitment to workplace learning is directly linked to its bottom line. This commitment has also
been seen as directly linked to a company's gross profit margin and income per employee. In the ASTD study, it was found that firms that invested an average of $1595 per employee in training had 24% higher
gross profit margins and 218% higher income per employee than firms in the bottom quarter, which invest $128 per employee.
The first step in working to hone a competitive edge and retain talented customer service employees is to offer training opportunities that develop
core employee skills. Once you have identified the need, you can begin to investigate the resources available to you to help set up your program. Ensuring that your customer service employees have a basic
understanding of the ACH in order to respond knowledgeably to routine inquiries -- without the need to contact the ACH operations area – will result in greater customer satisfaction and a more efficient operation
overall. The implementation and ongoing training of your customer service staff is one way in which membership in your Regional Payments Association will pay off.
The Role of Regional Payments Associations
Since the inception of the ACH Network in the mid-1970s, Regional Payments Associations were established across the country to assist financial
institutions to understand and comply with the many rules that are involved in conducting electronic transactions. In the past, training by these associations focused on the operational and compliance aspects of the
ACH Network. With the adoption of the non-recurring e-check applications over the past several years, customer service issues are now in focus and the Associations' training curricula has responded to this need.
There are many rules that regulate these new transactions, particularly in the area of consumer accountholder rights and merchant/biller
obligations. It is therefore vital that all financial institution employees that regularly deal with customer inquiries be well educated in the area of relevant ACH Network rules and the financial
institution's own ACH procedures.
If your institution has a centralized training department, ensure that the department's training objectives take into account the need for a basic
ACH understanding by frontline employees. Ensure that the training department takes advantage of the Association training tools available to them. You will find that with your Regional Payments Association
your employee development plan is part of their strategic plan. This is evident with their array of training offerings, many of which are tailored specifically to customer service employees.
Moreover, if your institution has a large geographic footprint, including remote call centers, it is very likely that multiple Regional Payments
Associations are available to meet your training needs. If you are unsure of which Associations are conveniently located to your operations, consult http://www.nacha.org/Memberships/RPA/rpa.htm.
ACH NETWORK E-CHECK APPLICATIONS
Internet-Initiated Entries (WEB): A consumer accountholder authorizes – via the Internet -- a company to debit their checking account. Accountholder authenticates their identity by entering a pin code or answering a secret question.
Telephone-Initiated Entries (TEL): A consumer authorizes –via the telephone --a company to debit their account. Specific rules guide companies and financial institutions as to proper authorization procedures for the consumer.
Point-of-Purchase Entries (POP): A consumer's check is converted to an ACH transaction at the point of sale or purchase. The merchant scans the check through an electronic terminal, capturing the MICR information at the bottom of the check. The check is voided and an authorization form prints. The consumer signs the authorization assenting to the transaction. The consumer receives back the voided check and a copy of their signed authorization.
Accounts Receivable Entries (ARC): A consumer's check is converted to an ACH transaction by a lockbox or dropbox operator. The consumer is notified in advance that his or her check will be converted.
|
