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Automated Clearing House (ACH) |
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This track addresses the core issues
surrounding the ACH Network and its users,
encompassing traditional and emerging applications
and approaches. Operational issues, audit, rules
compliance and enforcement, risk management, fraud
prevention, security, authentication and
authorization, best practices, trends, and more are
explored. A full mix of topics and perspectives are
provided to satisfy the aspiring novice and the
seasoned ACH professional. |
A Windy City Whirlwind: The New ACH Rules
Do not let amendments to the NACHA
Operating Rules leave you swaying in the wind! This session is sure to keep
your organization's feet firmly planted by identifying the new Rules changes
and discussing their impact to your organization. Understand what steps you
need to follow to ensure that you are ready to comply with the sudden gust of
new NACHA Operating Rules.
Kimberly W. Rector AAP
Director of Education -- ACH Services, MACHA - The Mid-Atlantic Payments
Association
ACH Operator Tools: Managing Risk for ACH
Origination
An integral part of the end-to-end risk
management strategy for the ACH Network is the adoption of new tools by the
ACH Operators surrounding ACH origination activity. This session drills down
into what these measures are, why they are being implemented, and what they
mean to ODFIs and Third-Party Senders. If your
organization is engaged in ACH origination and you are unfamiliar with these
tools, you would be well-advised to attend this session. The bar has been
raised and there is no limbo-ing allowed!
A Comprehensive ACH Network Risk
Management Strategy
A comprehensive set of steps have been
identified and are being pursued to enhance the management of risk end-to-end
through the ACH Network. Collectively, these initiatives are intended to
reduce unauthorized entries through a combination of tighter enforcement and
audit practices, and through economic incentives and penalties appropriately
scaled to underlying activity. This session delivers an overview of this
robust strategy and addresses the implications for ACH participants and the
intersecting business processes.
Ian W. Macoy AAP
Managing Director, Network Dev. & Risk Management, NACHA - The
Electronic Payments Association
DFI Best Practices in Risk Management
While risk management is an overarching
concern and the responsibility of all financial institutions, and the
underlying principles are universal, not all approaches apply across
institutions or client bases. In this facilitated panel discussion, attendees
gain practical insights into the challenges and relevance of differing ideas
from two financial institutions who are willing to
share their own experiences in risk management. Come and compare your risk
management program, and be prepared to share your own best practices with
your peers.
C. Alan Chudoba
SVP/Group Executive, Wachovia Bank, N.A.
Exception Handling: There are 2 or 3 Sides
to Every Story
In this real-world session you hear from
an ODFI, an RDFI, and a NACHA Operating Rules expert on how returns should be
processed as opposed to how they are actually processed, and how ODFIs are responding to these returns. Speakers also
examine rules violation and arbitration processes. On which side of the fence
will your organization find itself? Chances are, both. In conclusion, the
speakers focus on ways to improve the return process and explain how it
relates to overall ACH quality management.
Mary M. Gilmeister AAP
President, WACHA - The Premier Payments Resource
Defend Your Institution Against Electronic
Transaction Losses
According to the ABA Deposit Account Fraud
Survey, larger financial institutions face a greater risk exposure from
electronic delivery channels and transactions. Although ARC, WEB, and TEL
have resulted in faster and less expensive means of payment for financial
institutions, billers, and consumers alike, they
have also opened up new fronts in the battle against fraud. In order to fully
realize the benefits of these payment systems, financial institutions must
deploy a series of defenses to help protect themselves and their customers.
This session outlines how authentication and fraud detection solutions work
together to provide service access control, transaction verification and
protection prior to routing to the gateway, thus reducing error messages and
reversals while limiting liability exposure and improving customer relations.
Brian Dearle
Vice President, Wells Fargo
Mark King
SVP, Liability Risk Portfolio Management, Bank of America
Kris Strittmater
Director, Product Management, Early Warning Services, LLC
ACH Origination Fraud: Should You Be
Concerned?
The most commonly addressed ACH fraud
issue is unauthorized ACH debits. However, this is not the only way your
company can experience ACH fraud. Does your company have the necessary
controls in place to prevent ACH origination fraud and to detect unauthorized
ACH debits? This session will take you through the top ten tried and true techniques
and best practices in fraud prevention and illustrates how to apply them in
the ACH environment. Included in the discussion are check control points and
third-party processor controls.
Laura Listwan AAP, CCM
First Vice President, LaSalle Bank
ACH, OFAC & the BSA: The New
Examination Paradigm
The release of the 2006 update to the
interagency Bank Secrecy Act/Anti-Money Laundering Examination Manual
introduced a number of new areas of focus for the Federal examiner, including
an enhanced anti-money laundering and suspicious activity focus on ACH
activity. Although designed to handle a high volume of low dollar
transactions, the ability of the ACH to process high-dollar transactions can
expose financial institutions to a higher risk of money laundering and
terrorist financing. As the ACH Network moves forward with higher risk
applications, you must be aware that the old techniques for identifying fraud
may no longer be as effective. This session explores Federal examination
expectations for AML, BSA, and OFAC surrounding ACH activity, discusses ACH
risk from the anti-money laundering standpoint, and identifies the new
preventive measures that must be incorporated to remain in compliance.
Mark W. Dever
AAP
Senior Consultant, Professional Bank Services, Inc.
Carol R. Van Cleef
Partner, Bryan
Cave, LLP
Risky Business: Taking Steps to Minimize
ACH Payment Risk
With more people authorizing ACH debits
from personal or corporate accounts over the phone, and an increasing number
of consumer checks being converted into ACH debits at the point-of-sale or at
retail lockboxes, ACH fraud is under scrutiny. This
session examines risk mitigation processes that have proven to minimize
potential fraud and erroneous payment information, as well as best-practices
in the reduction of ACH exceptions and returns. Speakers in this case study
demonstrate how they have successfully deployed various internal preventative
tools to mitigate fraud, including verification models and new technologies.
Further discussion covers what companies should look for in their day-to-day
processes in order to preclude losses due to fraud or undue payment risk.
John Christensen
Manager, Payment Options, CyberSource
Corporation
Rene Pelegero
Sr. Dir. Industry Relations, Strategy & Compliance, PayPal, Inc.
Craig Vaream
Vice President, JPMorgan Chase
Exception Handling: Where Is My Time
Spent?
This assessment provides a better
understanding of exception processing beyond rejected transactions. Speakers
discuss ways to handle a variety of exception transactions and issues to
watch for in setting up a successful exception processing operations.
Guidance is offered regarding what to look for in an ACH processing solution
to automate your exception process in order to allow your staff to have time
for other company goals. Insights are provided for measuring progress.
Adrian K. Brown AAP
Consulting & Education Manager, The Payments Authority, Inc.
Dale R. Short AAP
Senior Business Analyst, TROY Group, Inc.
Managing the Impact of Rules Changes on
Consumers
Managing the customer impact of NACHA
Operating Rules amendments is a critical component of a financial
institution's business. Consumers as customers present specific
considerations. This session features representatives of three distinct types
of financial institutions who discuss how they deal with the changes, educate
their staff and consumers, and manage the expectations that each has from the
operations, customer service, legal, and business points of view. Discover
the best practices that each of these financial institutions have put in
place to cope with the rapidly changing electronic payments environment, and
take their examples back to the office to apply to your own organization.
Sachin Sachdeva
Senior Vice President, Bank of America
Jean Staunton
Assistant Vice President, LaSalle Bank
Just a Phone Call Away
A customer service telephone number is a
critical piece of information missing from ACH entry records. An Originator's
customer service telephone number could serve as a key element in improving
customer service quality and reducing risk. Learn about this proposed Rules
change, and understand the benefits and implementation considerations.
Ann-Marie Bartels AAP
President & CEO, Mid-America Payment Exchange
Patricia Kirkpatrick AAP
Applications Support Officer, First Financial Bank
The Benefits of a Corporate In-House ACH
Solution
While it may seem a daunting task for a
business, implementing an in-house ACH system offers incredible potential if
you look beyond payroll and routine debits. This fully-loaded session covers
the opportunities, challenges, best practices, and considerations from the
business case, operations, and risk management perspectives. Discover what
this path could mean to you and your trading partners. Speakers also examine
how to build an in-house ACH platform that integrates with other payment and
cash management systems, handles all users, and automates routine tasks and
file delivery to the bank.
John Cipriano
SVP, Financial Services, A.P. Technology
Nadilee Russell
SVP, Director of Cash Management, City National Bank
Rose-Colored Glasses or 20/20 Vision? The
Future of ACH
Transaction volume and associated dollars
have increased, acceptance of ACH transactions has grown, and the ACH Network
has become more robust and accommodating with new types of transactions. In
light of these advancements, issues such as risk, interoperability,
cross-channel integration, cross-border, and B2B ACH payments are receiving
ever-increasing attention within the payments industry. Some may think that
anyone with a positive perspective on the future of the payments industry
must be wearing rose-colored glasses. Or, could it be that a positive outlook
is really 20/20 vision? While significant focus has been placed on what can,
or could, go wrong in the ACH environment, these presenters see a great deal
of what can go right. This session's speakers address recent advances in the
ACH Network and look to the future with a focus on how participants will turn
challenges into opportunities that will ultimately lead to a stronger, more
vibrant payments network.
Richard R. Oliver
EVP & Retail Payments Product Manager, Federal Reserve System
David C. Stewart
Senior Vice President, Global Concepts, Inc.
ACH Fraud & Credit Risk Mitigation:
Soup to Nuts
Gain a comprehensive look at products,
services, solutions, techniques, and gaps for managing and mitigating ACH
risk across the spectrum of network participants. This panel presentation
follows the path of an ACH transaction -- from Originator to RDFI -- stopping
at each party to the transaction along the way to identify key risks and
discuss the means available to mitigate these risks. Presenters share
mitigating alternatives, advantages, disadvantages, and applications based on
payment type, including helpful hints for monitoring ACH payments and
considerations for setting exposure limits. At the end of this session,
panelists present a summary of resources, entertain questions, and engage in
an interactive dialogue with attendees.
Thomas Carlton Jr. AAP
Senior Director, ACH Services, Certegy, Inc.
Dawn M. Patton
Vice President, Bank of America
Mark R. Pregler
AAP
VP, Accounting Manager, First National Bank & Trust
Robert Williams AAP, CTP
Project Coordinator, Federal Reserve Bank of Atlanta
A Workout for the Aspiring AAP
So, you are contemplating sitting for the
Accredited ACH Professional (AAP) exam, but you are not quite sure if you
will be ready this October? Are you intimidated by what it takes to earn and
retain the accreditation? You just might need some coaching. This session
explains the purpose and value of the AAP designation and the continuing
education process. Guidance is provided for exam preparation, as is direction
for acquiring the appropriate tutelage from your Regional Payments
Association. You might not have to drop and give 'em
50, but the coaching staff delivers an AAP workout. Feel the burn -- it is
worth it!
Jennifer Gatts AAP
Director of Training, Payments Central
Pamela Rodriguez AAP
Executive Director, Alabama
ACH Association
Digesting the OCC Risk Management Guidance
for ACH Activities
The value a bank will derive from its ACH
program is directly proportional to the quality of the board's strategic
planning and the effectiveness of its ACH risk management program. In
September 2006, the Office of the Comptroller of the Currency (OCC) issued
guidance on managing the risks of ACH activity against a backdrop of banks
engaging in new ACH activities without enhancing existing risk management systems
and controls. The OCC bulletin outlines the key components of an effective
ACH risk management program, charging that all banks should use this guidance
to develop an ACH risk management program that reflects the nature and
complexity of their activities. The guidance is comprehensive and articulates
the elements of an effective risk management program, including risk
management systems and controls, reporting to the Board of Directors, ACH
audit, assessment of credit risk, underwriting standards, exposure limits,
use of third-parties, and an assessment of high-risk activities. In order to
maximize the benefits of ACH activities, banks should implement an effective
process for managing the associated risks.
Carter Messick
Lead Information Technology Expert, Office of Comptroller of the Currency
Steven Minor
National Bank Examiner, Midsize Bank Supervision, Office of Comptroller of
the Currency
The ACH Audit: An Effective Tool for ACH
Risk Management
Risk management is the hottest issue in
payments today, particularly in the ACH Network. This session explores the
ACH Rules compliance audit from a risk mitigation perspective, which is not
the traditional walk through the audit criteria. Compliance with the Rules is
required and expected; the annual ACH Rules compliance audit is also
required. Find out how you can analyze and utilize the results of your ACH
compliance audit to identify potential areas of ACH risk and implement the
appropriate controls. Understand fully what the proposed Rules amendments
surrounding ACH audit means to your institution.
Cynthia J. Thompson AAP, CCM
Education & Training Director, The Payments Authority, Inc.
Wendy Wishon AAP
Vice President, Mid-America Payment Exchange
Redefining International ACH Transactions
The Office of Foreign Assets Control
(OFAC) has requested that the cross-border ACH formats be amended to
accommodate additional data requirements consistent with FinCEN's
travel rule. The changes would ensure that sufficient information is conveyed
to identify parties to the transaction for monitoring purposes, thus
facilitating the ability of financial institutions to comply with OFAC
requirements. A proposal to this effect is in the NACHA Rule Making Process,
which would potentially redefine what constitutes an international ACH
transaction, introduce new data fields, and possibly replace the PBR and CBR
with a new Standard Entry Class (SEC) Code. This session addresses what these
changes are and why they are being proposed.
Priscilla Holland AAP, CCM
Senior Director International & Corporate Payments, NACHA - The
Electronic Payments Association
Flying Blind No More: Tips for RDFIs
There are circumstances in which an RDFI
encounters uncharted territory -- where rules, law, or regulation are absent
or nebulous at best. This session focuses on such cases and offers deductive
reasoning and industry best practices for managing them. If you are looking
for a unique treatment of problem resolution in the ACH environment, this
session is for you. Expert insights are provided. Attendees are encouraged to
share scenarios in an interactive problem-solving hour that strives to fill
the voids.
Meg Prieur AAP
Education & Training Manager, The Payments Authority, Inc.
Managing Third-Party Relationships
Many financial institutions use
third-parties to perform payment services on their behalf. Often times,
things work well. However, there are cases in which the institution does not
have the proper controls and processes in place, is not adequately monitoring
activity, and does not understand its obligations and exposure. This
abdication of responsibility threatens not only that institution and its
customers, but also other institutions in the ACH Network and their
customers. It is incumbent on financial institutions that use third-parties
to understand and comply with the NACHA Operating Rules accordingly, have the
proper agreements in place, know their customer and their customer's customer
as applicable, and employ appropriate risk management and business practices.
This session focuses on relationships with Third-Party Service Providers and
Third-Party Senders. Speakers take on the critical and sometimes thorny issues
that can trip you up, and offer guidance on responsible ACH participation in
such arrangements.
David Wisdom
SVP, Commercial Risk Management, SunTrust Banks, Inc.
EBIDS Pilot Launch: Bill Delivery &
Payment via the ACH
In the Electronic Billing Information
Delivery Service (EBIDS) pilot, billers deliver eBills to consumer financial institutions and receive
corresponding credit payments with remittance all through the ACH Network.
This session describes the EBIDS product design for supporting enrollment,
presentment, and payment processes. In addition, panelists discuss the status
of the pilot's launch and provide details on their experiences to date from
the biller, financial institution, and directory
provider perspectives.
Rob Unger AAP
Senior Director, Electronic Commerce Services, NACHA - The Electronic
Payments Association
Angeline DePauw
Director, Electronic Remittance Processing, Verizon
Communications
Christopher Huppert
Senior Vice President, Wells Fargo
J. Michael
Taipale AAP
Manager, Electronic Payment Product Development, Federal Reserve Bank of
Cleveland
NACHA Online Payments Pilot: Next
Generation of Online Payments
Innovators in the payments arena continue
their work with NACHA on the Online Payments Pilot -- an initiative to test
online transactions in which consumers will be authenticated by their own
financial institutions, and initiate secure, private electronic payments via
their financial institutions' online banking platforms. The Pilot will test
consumer bill payments, purchases and account-to-account funds transfers.
Learn more about this exciting project. Subject areas explored include:
- Product features for today's marketplace --- privacy, security and payment
guarantee
- Pilot participants -- who has signed on and why
- Pilot plan -- next steps and rollout
- Pilot evaluation criteria
Samantha Carrier
Senior Director of Special Projects, NACHA - The Electronic Payments
Assoc.
Unlawful Internet Gambling Enforcement Act
of 2006
The Unlawful Internet Gambling Enforcement
Act of 2006 was passed to prevent the use of certain payment instruments,
credit cards, and fund transfers related to unlawful Internet gambling. The
Act attempts to regulate illegal Internet gambling through financial
institutions, including credit cards and third-party processors. The
presenters discuss how the Unlawful Internet Gambling Enforcement Act of 2006
will affect ACH policies and other Internet-processing activities, as well as
what kind of liabilities financial institutions and processors may face for
processing Internet gambling transactions.
Allison L. Harvey
Litigation Associate, Squire, Sanders & Dempsey
Cynthia A. Ricketts
Litigation Partner, Squire, Sanders & Dempsey
The ACH Agreement: Have you Covered Your
Assets?
Electronic payments continue to thrive and
as a result, more legal issues have arisen. We are all working on better ways
to manage risk but how are we communicating that to our origination customers?
If you don't put your expectations in writing, they won't hold up in a court
of law. As an ODFI, Originator or Third-Party Sender, have you taken the
necessary steps to cover yourself? ePayments
have increased exponentially in the past three years with more products and
services to benefit both corporations and consumers. With this intense growth
comes increased risk. NACHA and the electronic payments industry have
recognized the need for greater risk management. New ACH Rules are being
implemented and existing rules are being modified to mitigate those risks. As
we move forward in the payments arena, it is paramount to understand the
impact these rules will have on us, our customers and anyone originating ACH.
This session covers various aspects of the ACH Origination Agreement,
including the Third-Party Sender Agreement you should have in place as an
ODFI. Learn to "cover your assets" while addressing various
financial, reputation, and systemic risks. Understand the benefits of
implementing collateral and reserve agreements with high-risk originators, as
well as setting standards to monitor returns. Realize the implications
against your bank or business if you do not have solid verbiage for
termination of service. Find out how to keep abreast of changes in electronic
payment law and apply best practices with your customers.
John M. Curtis AAP
Vice President/Senior Product Manager, East West Bank
Patricia Presta AAP
VP, Education & Communication, Western Payments Alliance
Driving ACH Revenues through Customer
Education and Marketing
The chasm between the supply and demand
for ACH transactions in the small business market is vast. While the majority
of banks supply online ACH initiation to their small business users, research
has found only a very small percentage actually use or demand it. The reason
is simple. Customers do not use banking products they do not understand. More
and more banks are now focusing on driving new revenues through ACH
transactions. This session explores the mind set of the small business
customer, how banks are addressing driving ACH usage, and share best
practices in customer education and marketing.
Jenny Ayres
EPN Product Manager, Electronic Payments Network
Brandon Kunz CTP
Director of Product Management, S1 Corporation
Todd Ritzler
VP, Commercial Product Management, Sky Financial Group
What's Really Flowing Through the ACH
Network? A Look at ACH Quality Issues
The ACH Operators and NACHA are engaged in
unprecedented efforts to analyze ACH forward and return transaction data to
identify patterns of use and misuse. A deeper and clearer understanding of
transaction data will help mitigate risk and improve quality in the ACH
Network. This session explores patterns observed in forward and return
consumer ACH debit transactions. Session participants gain an understanding
of what is flowing through the ACH Network, what consumer debit transactions
are used for, and what patterns of use and misuse show about the quality of
ACH transactions.
Nancy Grant AAP
Senior Director, Research Services, NACHA - The Electronic Payments
Association
Laura Magazu AAP
Retail Payments Project Manager, Federal Reserve Bank of Atlanta
Norman K. Robinson AAP, CTP
President, EastPay, Inc.
ACH Enforcement: A Proposal to Address
High-Risk Activity
One core component of NACHA's
comprehensive risk management framework lies in the Rules enforcement area,
with a proposal being developed through the Rule Making Process to ensure high
quality ACH transactions and mitigate risk for financial institutions,
businesses, and consumers by minimizing unauthorized entries. The proposal is
designed to address the highest-risk uses and users of the ACH Network. It
would define criteria deemed to constitute excessive returns, establish a
Rules-based process to monitor excessive unauthorized ACH entries, and
incorporate defined triggers and penalties into the National System of Fines.
In addition to fines, a recommendation for suspension would be an option for
the worst cases. Hear what is being proposed and why, and understand what it
would mean to your organization if approved.
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