Payment Trends, Preferences & What Works for Credit ...€¦ · – Marketing to customers to pay online or by ACH. Calling. – Worked with sales to force all customers to pay via
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No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice and is intended for educational purposes only.
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• Credit Research Foundation– The Credit Research Foundation is an independent non-profit,
consisting of a dynamic community of like-minded senior/executive business professionals with a vested interest in maintaining a competitive advantage in the disciplines and processes related to credit and accounts receivable management. Membership contains a cross section of industry segments and representation from companies within the Fortune 1500.
• NACHA-The Electronic Payments Association– As a not-for-profit association, NACHA also represents nearly
10,000 financial institutions via 11 Regional Payments Associations and Direct Membership. Through the Payments Innovation Alliance, accreditation programs, conferences and educational offerings, NACHA unites payments systems stakeholders, fostering dialogue and strengthening the ACH Network together.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice and is intended for educational purposes only.
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1. Overview2. Automation and Robotics
– The branch of computer science that deals with the design, construction, operation, and application of “bots”, as well as computer systems for their control, sensory feedback, and information processing. In this case the payment and application process.
3. Scalability– The capability of a system, network, or process to handle a growing amount of work, or its
potential to be enlarged to accommodate that growth.
4. Efficiency and Cost Containment– A form of analysis that compares the relative costs and outcomes (effects) of different
courses of action and compartmentalizes cost within a an agreed upon amount.
5. Customer Service– The provision of service to customers before, during and after the consumption of a good or
service.
6. Risk and Fraud Controls– The controls placed in a business to detect and prohibit the deliberate deception to secure
unfair or unlawful gain, or to deprive a business of its legal right(s).
7. Obstacles and Answers– Highlights of the obstacles associated with electronic payments and opportunities to
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice and is intended for educational purposes only.
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• Customer Push– As more of our larger customers go paperless, they find the simplicity of …ACH for payment
more expedient, and the ideal tool for cutting costs, regarding checks, interest expense, etc.
– Customer reducing costs moving to E-payments
– More customers are paying via ACH
– Customers want to pay via ACH
– AP dept are finally understanding the cost savings of ACH vs check and they are coming to us to convert to ACH vs us asking them.
– more people opting to use credit cards- rebates and incentives and cash flow
– More customers want to use credit cards for points.
– Customers are increasing credit card payments and ACH , which gives them better control of funds. Less past due and able to take advantage of any early pay discounts.
• Cost– Cash maximization initiative
– 1. working capital management. 2. shrinking headcount demands automation of payments as well as cash application.
– Reduced cost of processing an ACH vs Check
– Customer cash flow
– Taking advantage of cash discounts, reducing check processing costs
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice and is intended for educational purposes only.
14
1. Overview
2. Automation and Robotics
– The branch of computer science that deals with the design, construction, operation, and application of “bots”, as well as computer systems for their control, sensory feedback, and information processing. In this case the payment and application process.
3. Scalability– The capability of a system, network, or process to handle a growing amount of work, or its
potential to be enlarged to accommodate that growth.
4. Efficiency and Cost Containment– A form of analysis that compares the relative costs and outcomes (effects) of different
courses of action and compartmentalizes cost within a an agreed upon amount.
5. Customer Service– The provision of service to customers before, during and after the consumption of a good or
service.
6. Risk and Fraud Controls– The controls placed in a business to detect and prohibit the deliberate deception to secure
unfair or unlawful gain, or to deprive a business of its legal right(s).
7. Obstacles and Answers– Highlights of the obstacles associated with electronic payments and opportunities to
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice and is intended for educational purposes only.
19
1. Overview
2. Automation and Robotics– The branch of computer science that deals with the design, construction, operation, and
application of “bots”, as well as computer systems for their control, sensory feedback, and information processing. In this case the payment and application process.
3. Scalability
– The capability of a system, network, or process to handle a growing amount of work, or its potential to be enlarged to accommodate that growth.
4. Efficiency and Cost Containment– A form of analysis that compares the relative costs and outcomes (effects) of different
courses of action and compartmentalizes cost within a an agreed upon amount.
5. Customer Service– The provision of service to customers before, during and after the consumption of a good or
service.
6. Risk and Fraud Controls– The controls placed in a business to detect and prohibit the deliberate deception to secure
unfair or unlawful gain, or to deprive a business of its legal right(s).
7. Obstacles and Answers– Highlights of the obstacles associated with electronic payments and opportunities to
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice and is intended for educational purposes only.
21
Percentage U.S./Non U.S. Payments Received
U.S.88%
Non U.S.12%
Of the total annual payments, what percentage are from U.S. customers, and what percentage are from international customers? (write in percentage – total
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice and is intended for educational purposes only.
24
1. Overview
2. Automation and Robotics– The branch of computer science that deals with the design, construction, operation, and
application of “bots”, as well as computer systems for their control, sensory feedback, and information processing. In this case the payment and application process.
3. Scalability– The capability of a system, network, or process to handle a growing amount of work, or its
potential to be enlarged to accommodate that growth.
4. Efficiency and Cost Containment
– A form of analysis that compares the relative costs and outcomes (effects) of different courses of action and compartmentalizes cost within a an agreed upon amount.
5. Customer Service– The provision of service to customers before, during and after the consumption of a good or
service.
6. Risk and Fraud Controls– The controls placed in a business to detect and prohibit the deliberate deception to secure
unfair or unlawful gain, or to deprive a business of its legal right(s).
7. Obstacles and Answers– Highlights of the obstacles associated with electronic payments and opportunities to
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice and is intended for educational purposes only.
27
• Bank/vendor/network file transmission to you (ACH remittance and lockbox)
– Themes: payments plus information = automation and accuracy
• Receiving the remittance advices along with the payment is more efficient. It does not require us to contact anyone or go to another website, etc.
• For electronic payments we want to see the remittance info with the payment (in the correct format); payment and details all together
• Payments can be uploaded quickly with high level of accuracy.
• Format consistency
• Auto upload enables touchless application; limits the number of human errors in posting cash; less room for interpretation of data errors (human error); most likely to auto cash without errors
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice and is intended for educational purposes only.
31
1. Overview
2. Automation and Robotics– The branch of computer science that deals with the design, construction, operation, and
application of “bots”, as well as computer systems for their control, sensory feedback, and information processing. In this case the payment and application process.
3. Scalability– The capability of a system, network, or process to handle a growing amount of work, or its
potential to be enlarged to accommodate that growth.
4. Efficiency and Cost Containment– A form of analysis that compares the relative costs and outcomes (effects) of different
courses of action and compartmentalizes cost within a an agreed upon amount.
5. Customer Service
– The provision of service to customers before, during and after the consumption of a good or service.
6. Risk and Fraud Controls– The controls placed in a business to detect and prohibit the deliberate deception to secure
unfair or unlawful gain, or to deprive a business of its legal right(s).
7. Obstacles and Answers– Highlights of the obstacles associated with electronic payments and opportunities to
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice and is intended for educational purposes only.
34
1. Overview
2. Automation and Robotics– The branch of computer science that deals with the design, construction, operation, and
application of “bots”, as well as computer systems for their control, sensory feedback, and information processing. In this case the payment and application process.
3. Scalability– The capability of a system, network, or process to handle a growing amount of work, or its
potential to be enlarged to accommodate that growth.
4. Efficiency and Cost Containment– A form of analysis that compares the relative costs and outcomes (effects) of different
courses of action and compartmentalizes cost within a an agreed upon amount.
5. Customer Service– The provision of service to customers before, during and after the consumption of a good or
service.
6. Risk and Fraud Controls
– The controls placed in a business to detect and prohibit the deliberate deception to secure unfair or unlawful gain, or to deprive a business of its legal right(s).
7. Obstacles and Answers– Highlights of the obstacles associated with electronic payments and opportunities to
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice and is intended for educational purposes only.
36
1. Overview
2. Automation and Robotics– The branch of computer science that deals with the design, construction, operation, and
application of “bots”, as well as computer systems for their control, sensory feedback, and information processing. In this case the payment and application process.
3. Scalability– The capability of a system, network, or process to handle a growing amount of work, or its
potential to be enlarged to accommodate that growth.
4. Efficiency and Cost Containment– A form of analysis that compares the relative costs and outcomes (effects) of different
courses of action and compartmentalizes cost within a an agreed upon amount.
5. Customer Service– The provision of service to customers before, during and after the consumption of a good or
service.
6. Risk and Fraud Controls– The controls placed in a business to detect and prohibit the deliberate deception to secure
unfair or unlawful gain, or to deprive a business of its legal right(s).
7. Obstacles and Answers
– Highlights of the obstacles associated with electronic payments and opportunities to overcome them.