e-Lockbox file consolidation Howard N. Forman, AAP Senior Vice President Electronic Payments Consultant Utility Payment Conference September 27, 2012 © 2012 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. What is an electronic lockbox? Consolidation point for online banking bill payments and other “consumer-directed” bill payments Facilitates an end-to-end electronic link between the biller and the bill payer 1 What are the benefits of an electronic lockbox? Financial –Accelerates receivables posting –Reduces costs (electronic vs. paper processing) –Simplifies payment reconciliation Operational –Simplifies payment receipt process –Maximizes electronic volume –Allows for value-added processing 2 Basic features of an e-lockbox service Consolidates payments electronically from multiple sources/bill payment providers –“Best in class” providers will allow aggregation of other data source (e.g., ACH, lockbox, etc.) Delivers a “posting ready” data file Allows transactions to be returned to bill payers, as necessary 3 “Best in class” features of an e-lockbox service Direct connections to bill pay service providers –Robust network of connections – including walkin bill payment service providers –ACH CIE payments Account validation –Incoming payments verified against acceptable account structures –The most sophisticated processors will use your MAM (positive file) for individual transaction validation and additional value-added processing 4 “Best in class” features of an e-lockbox service Online exception management – Transactions failing validation presented for review and decisioning via secure, online service – Exceptions can be corrected or returned – Posting file contains only “clean,” corrected payments Online transaction search/query Cross-reference processing – “Old account/new account” swapping – Corrections to rejected transactions stored for use on subsequent payments from the same payor 5 “Best in class” features of an e-lockbox service Reversibility processing B2B payment acceptance – Leverage account validation features on incoming ACH business payments – “Unbundle” ACH CTX transactions “Expedited” payment processing – Ability to deliver walk-in payments real-time/near real-time Dedicated implementation and operations teams 6 Contact us Howard N. Forman, AAP Senior Vice President Electronic Payments Consultant [email protected] Howard N. Forman, AAP Senior Vice President Electronic Payments Consultant [email protected] © 2012 Wells Fargo Bank, N.A. All rights reserved. Member FDIC.