Presentation is loading. Please wait.

Presentation is loading. Please wait.

Remittance Coalition Slides May 2014. Table of Contents Slides 4-7Basic Information about the Remittance Coalition 9-10Remittance Coalition Survey of.

Similar presentations


Presentation on theme: "Remittance Coalition Slides May 2014. Table of Contents Slides 4-7Basic Information about the Remittance Coalition 9-10Remittance Coalition Survey of."— Presentation transcript:

1 Remittance Coalition Slides May 2014

2 Table of Contents Slides 4-7Basic Information about the Remittance Coalition 9-10Remittance Coalition Survey of Corporate Practitioners 12-14Deduction Code Project (Core Adjustment Reason Codes) 16Remittance Standards Inventory 18Remittance Glossary 20-23Education & Outreach Activities of the RC 25Standards of Focus in B2B Directory 2

3 Basic Information about the Remittance Coalition

4 Remittance Coalition Participation National group of associations, small & large businesses, financial institutions, technology & software vendors, standards development organizations & others —Formed in 2011 —336 members & growing —No dues or criteria for joining, other than a willingness to work together Mission Work together to solve problems related to processing remittance information associated with B2B payments in order to promote use of electronic payments & straight through processing (STP) 4

5 How the RC Operates Remittance Coalition meets 4 times a year —2 conference calls & 2 in-person meetings (at NACHA Payments & AFP annual conferences) Members volunteer for work groups based on interests & expertise Members stay informed via meetings, calls, & website 5

6 RC Successes & Priorities 2013 Successes: Simplified Deduction Code Project Remittance Standards Inventory Remittance Glossary Educational Publications Outreach 2014 Priorities: Continue targeted education & outreach B2B Directory Project Promote adoption of selected standards & technical reports (ISO Stand-Alone Remittance Message, XML Remittance Format, & others) 6

7 Remittance Coalition Information The Federal Reserve Bank of Minneapolis posts information about the Remittance Coalition on its public website: Visit the website to:  Join the Remittance Coalition  Volunteer on a project  Learn about activities 7

8 Remittance Coalition Survey of Corporate Practitioners

9 “Remitters cannot or will not send quality remittance data in the payment addenda. Separate forces a completely manual process.” “Missing data elements & lack of consistency in formatting cause us to post remittances to our customers late & often requires communication back & forth between us & the customer to determine what they are paying.” “Multiple formats for remittance information create a reconciliation nightmare – it is not easy to automate.” “Many of our vendors are small &/or located in remote areas & do not accept or receive electronic remittance information.” Remittance Coalition Survey: What Corporate Practitioners Said Source: 2012 Remittance Coalition Survey 9

10 Survey Results: Solutions Practitioners Want Source: 2012 Remittance Coalition Survey 10

11 Deduction Code Project – aka Core Adjustment Reason Codes

12 RC Success Example: Addressing Deduction Code Problems Over 600 codes defined in X12 standard “426 adjustment reason code” —Used in various EDI transactions (e.g., 820 Payment & Remittance Advice, 812 Credit/Debit Adjustment) —Used in other remittance exchanges (e.g., remittance) Unclear definitions & descriptions lead to: —Inconsistent usage across business entities —Manually processing of remittance data or customizing software to ensure compatibility with trading partners 12

13 Goal: Develop Common Standards Identified about 70 codes as essential for deduction processing – Developed a short list of “core” codes along with higher level categories for roll up – Includes the 12 codes allowed in X12 STP 820 Mapped to “best fit” codes from 426 code list to minimize need to convert (426 codes can still be used) Codes may be carried in X12 messages or other electronic formats OR may be included in other remittance information exchanges (e.g., spreadsheet, ) Simplified Deduction Code Project 13

14 Core Deduction Reason Codes TR 1.Core Deduction Reason Codes Technical Report available for free download at X9.org 2.Encourage software & technology vendors to support simplified “core” code list 3.Educate business practitioners about the core code list & encourage adoption 14

15 Remittance Standards Inventory Technical Report 15

16 Remittance Standards Inventory Reference guide describing 16 remittance standards —Defines each standard, types of payments that it supports, how remittance may be sent, & information about the issuing organization Published as TR by ASC X9; available for free download at X9.org 16

17 Remittance Glossary Technical Report 17

18 Remittance Glossary Reference guide offering a vocabulary & terminology —Defines 169 terms related to payables & receivables processing, B2B payments, & remittances Published as a Technical Report by ASC X9 & can be downloaded at X9.org 18

19 Education & Outreach Activities of the Remittance Coalition 19

20 Education & Outreach Speak at regional & national conferences Create publications & publish articles that help promote greater usage of electronic payments & remittance exchanges, as well promote standards adoption 20

21 Education Remittance Coalition publications —Payment Types Explained —Extended Remittance Information Wire Transfer Format —Business Educational Tool on ACH Reconciliation Services —Case study: Small Business Experience with ACH Payments Review Panel vets copy & suggests topics 21

22 Small Biz Toolkits Coming in 2014 Coalition volunteers will develop & promote use of easy, plain- language “toolkits” that provide step-by-step information to help small business adopt more electronic payments & remittance information; including sample “form” letters, & illustrative terms & conditions —Current plans are for two toolkits: 1) Geared to bankers to help them see the value of promoting ACH or other electronic alternatives to their small business clients, including what banks should consider in terms of pricing, packaging, customer support, etc. to be successful in moving small businesses away from checks 2) Designed to serve small businesses directly, as well as their financial advisors 22

23 Outreach RC representatives presented at 8 conferences & 4 webinars in 2013 Slide decks are posted on RC website: Vendor Forum held at Credit Research Foundation Conference —Encouraged standards adoption among software & technology vendors Retail Value Chain Federation Focus Group on common biz processes & practices needed in retail sector —Potential new X9 work item to create standard on debit balances best practices Small biz outreach: America’s Small Business Development Centers conference (workshop & focus group) & Small Business Administration webinars 23

24 Standards of Focus in

25 Standards of Focus in 2014 Standards ISO Payment Remittance Messaging in the Automated Clearing House (ACH) Network Balance Transaction & Reporting Standard (BTRS) Wire Format ERI: Fedwire Funds Service & CHIPS ISO Stand-Alone Remittance Advice Message Technical Reports (are available free at X9.org) Simplified Deduction Codes /Core Adjustment Reason Codes Technical Report Remittance Standards Inventory Technical Report Remittance Glossary Technical Report 25

26 Tactics to Encourage Standards Adoption Work with software & technology vendors to promote standards adoption —Make business case for implementing standards in upcoming releases o Define “win-win” for both billers & payers —Identify ways to improve interoperability among existing services & systems —Continue dialogue started at Vendors Forum by holding meetings/calls in

27 B2B Directory 27

28 B2B Directory: Scope Work group determined requirements of a B2B directory that meets needs of small to medium sized biz —Defined pain points —Developed use cases —Creating white paper that outlines specifications & proposes a framework for one or more secure directory models 28

29 B2B Directory: Status Remittance Coalition B2B Directory work team is closing out the first phase of its work —White paper capturing requirements & recommending an approach to be published this summer Next steps: Planning next phase of pilot & implementation —Addressing: 1) governance (e.g., Directory Association) & 2) what the business model will be to drive initial adoption —Recruiting volunteers who will adopt the directory & be early adopters; want people who will take action in proof of concept stage B2B Directory registers & facilitates payee electronic identity; is not a payment system Also promotes a simple, standard format to handle remittance data Data security protection is paramount 29

30 Payment Identity Components A payment identity contains (at least) the following information for an organization listed in the directory Directory SectionComments DIDUnique ID Contact InformationName, Address, Phone Number Search StringAny data that the organization wishes to include that facilitates the identification of the payee, for example subsidiaries or DBAs Payment Type (1 or more)Preferred?Accepted Payment Method, and whether preferred Payment Type Data [1]StringPubic/PrivateData needed by Payment Type to originate payment Payment Type Data [n]Unlimited fields for each Payment Type. Each field is marked private/public. Organization decides whether to publish or not. MinimumOptional: The smallest amount accepted using this payment method MaximumOptional: The largest amount accepted using this payment method Remittance SpecIndicates how remittance should be formatted and sent for this payment method 30

31 Payment Identity: Example Directory Section DIDGHT45555 Contact InformationRepublic Services, 18500, N. Allied Way, Phoenix, AZ Contact: Patti Ritter, , Search StringAccepts payments for Allied Waste Services, BFI and Consolidated Waste Payment TypePreferredACH RTN Private DDA Private Minimum$0.00Public MaximumNo LimitPublic Remittance Stringpayments.republic.com/ACH-Remittance Republic prefers CTX with STP820 format, including at least the invoice number Public Payment TypePayMode PayMode-ID Public Minimum$0.00Public Maximum$10,000.00Public Remittance SpecPayments.republic.com/PayMode-RemittancePublic Privacy is determined by the payee. For a UPIC, would probably be public. If private, payer would contact payee for detail. Remittance string could be a link to a web site, contact information, or any other (unlimited) free form text These are free-form strings that can be used to positively identify payees. The search string is essentially “keywords”. For example, a Verizon Wireless DID could put their Verizon Landline DID in the search string. 31

32 Payee sends invoice without electronic payment information… …but payer wishes to pay electronically, is aware of directory… Use Case 1 32

33 The B2B Directory B2BDirectory: find something What are you looking for? Boston Globe 12 matches found (displaying by relevance) The Boston Globe PO Box Boston MA The Boston Globe Store 135 Morrissey Boulevard Boston MA The Boston Globe Advertising Company 1 Main Street Cambridge MA The Boston Globe and Map Company 39 Freedom Lane Somerville, MA The Boston Globe DID: GHT56663 Daily newspaper based in Boston, MA. We accept the following payment methods ChecksPO Box Boston, MA Please include your account number on the check ACHPlease call for payment information and remittance detail. Credit CardAccepted online at https://bostonglobe.com/payments 33

34 Payee sends invoice with payment directory ID… …and a place to look up and retrieve payment information We accept other forms of payment. Please ook us up at b2bdirectory.com Use Case 2 34

35 The B2B Directory B2BDirectory: find something What are you looking for? GHT match found The Boston Globe PO Box Boston MA The Boston Globe DID: GHT56663 Daily newspaper based in Boston, MA. We accept the following payment methods ChecksPO Box Boston, MA Please include your account number on the check. ACHPlease call for payment information and remittance detail. Credit CardAccepted online at https://bostonglobe.com/payments 35

36 Centralized access, distributed management Central Node b2bdirectory.com Sub Directory Node managed by Directory Host Wells FargoVISABottomLine Central Cache Sub-directory When the Payer does a directory information lookup… …information is returned from a “directory of directories” Sub-directory The central node is populated by crawling distributed nodes periodically, and on demand B2B Directory 36


Download ppt "Remittance Coalition Slides May 2014. Table of Contents Slides 4-7Basic Information about the Remittance Coalition 9-10Remittance Coalition Survey of."

Similar presentations


Ads by Google