e-Lockbox File Consolidation

Report
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.

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