NACHA Selects Capital One, Tower Federal Credit Union and Wells Fargo For 2002 Kevin O'Brien ACH Quality Award

Posted April 22, 2002

NACHA – The Electronic Payments Association has selected Capital One Financial Corporation, Tower Federal Credit Union, and Wells Fargo & Company as winners of the 2002 ACH Quality Award in recognition of their successes in implementing quality Automated Clearing House processes.

“The ACH is a high-quality payments system, and the ACH Quality Award showcases best practices and forward-looking business practices among ACH participants,” said Mary Ann Francis, Chair of NACHA’s ACH Quality Task Force and a Senior Vice President at National City Corporation. “The 2002 ACH Quality Awards highlight both well established ACH products, such as Direct Deposit, and new ACH applications.”

Capital One Financial Corporation, of Falls Church, Virginia, is being recognized as a corporate originator of ACH payments. In 1999, Capital One offered customers the ability to view their statements and make payments over the Internet. With more than 5 million customers signed up, electronic payments have grown to 18 percent of all payments. Capital One also offers telephone payments and monthly automatic debits, and receives electronic payments from consumer bill payment and home banking services.

As a result of its use of electronic payments, Capital One’s ACH origination volume increased by 985 percent in 2001. To support over 2 million ACH payments monthly, Capital One implemented automated notification of change processes and routing number verification. These changes have resulted in substantial cost savings through reduced administrative returns and fewer customer payment inquiries.

Tower Federal Credit Union of Laurel, Maryland is being recognized as a receiving depository financial institution for improvements to its Direct Deposit services for its members. Tower developed an automated program to review the more than 5,000 ACH payments received each day for data mismatches. This allows Tower to address any deposit problem on the day the deposit is received, eliminating delay or financial impact to the member. During the first six months, Tower prevented the delay of deposits totaling more than $28,000.

Tower also implemented a Direct Deposit allocation program that automatically disburses funds received via the ACH network according to a member’s predetermined instructions. By automatically reviewing incoming Direct Deposits for changes to company information, Tower ensures that members’ allocations are processed accurately, rather than waiting for a member to notify Tower of changes or problems.

San Francisco-based Wells Fargo, with $308 billion in assets, is being recognized as an originating depository financial institution for its Check Truncation Decision Processing, which identifies checks that are ineligible for electronic conversion and ensures correct MICR line parsing. Solving these challenges greatly reduces exception items, improves collection rates, improves processing quality, and satisfies consumer expectations for problem- free service.

Wells Fargo’s Check Truncation Decision Processing was deployed during NACHA’s Accounts Receivable Truncation pilot on behalf of an e-check customer. Item return rates were reduced from 10 percent to 1.1 percent. Wells Fargo Treasury Management has shown that a 98.9 percent check conversion success rate is possible, and has its sights set on a 99 percent-plus success rate.

The ACH Quality Award winners will receive the award and present their winning entries at NACHA’s PAYMENTS 2002 conference in Dallas, Texas on Monday, April 15, 2002. Their case studies will also be published in NACHA’s 2002 Electronic Payments Review and Buyers’ Guide.

The ACH Network serves 20,000 financial institutions, 3.5 million businesses, and 100 million individuals.

The ACH Network is commonly used for Direct Deposit of payroll and government benefits such as Social Security, Direct Payment of consumer bills, business-to-business payments, federal tax payments, and, increasingly, e-checks and e-commerce payments. In 2000 there were 6.9 billion ACH payments made worth more than $20 trillion.

About NACHA – The Electronic Payments Association
NACHA is the leading organization in developing electronic solutions to improve the payments system. NACHA represents more than 12,000 financial institutions through direct memberships and a network of regional payments associations, and 650 organizations through its industry councils. NACHA develops operating rules and business practices for the Automated Clearing House (ACH) Network and for electronic payments in the areas of Internet commerce, electronic bill and invoice presentment and payment (EBPP, EIPP), e- checks, financial electronic data interchange (EDI), international payments, and electronic benefits transfer (EBT). Visit NACHA on the Internet at .

 

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