Online Payment Indonesia | Sistem Pembayaran Online | Bisnis Online
Ppt Online Payment
-
Upload
rushabh-chheda -
Category
Documents
-
view
235 -
download
6
Transcript of Ppt Online Payment
-
8/3/2019 Ppt Online Payment
1/19
ONLINE PAYMENT
GROUP MEMBERS:
RUSHABH BHATT- 10-A04
RUSHABH CHHEDA- 10-A08
YOGESH SAKPAL- 10-A42
VINIT THAKER- 10-A53
-
8/3/2019 Ppt Online Payment
2/19
Electronic ClearingMAKER (DRAWER) DATE CHECK
NUMBER
AMOUN
T
CURRENCY
AUTHORIZEDSIGNATURE OF
MAKERS AGENT
DRAWEE
BANK
PAYEE
DRAWER
ACCOUNT
NUMBER
DRAWEE BANKNUMBER
The paper check is just
a carrier of information.
Electronic transmission is
better.
We dematerialize the check(remove the paper).
0 6 1 3 0 0 1 8 1 8 4 3 1 0 1 4 3 7 0 0 0 0 0 0 0 0 0 1 0 0 0 0 U S D 0 6 5 2 0 0 3 5 6 4 2 5 0 2 0 0 1 0 1 3 0
DRAWER
ACCOUNT
NUMBER
DRAWEE
BANK
NUMBER
CHECK
NUMBERAMOUNT CURRENCY PAYEE
BANK
NUMBER
PAYEE
ACCOUNT
NUMBER
DATE
Only the information is sent to the clearing house
-
8/3/2019 Ppt Online Payment
3/19
Automated Clearing House
(ACH) Nationwide wholesale electronic payments system
Transactions not processed individually
Banks send transactions to ACH operators
Batch processing store-and-forward
Sorted and retransmitted within hours
Banks Originating Depository Financial Institutions (ODFIs)
Receiving Depository Financial Institutions (RDFIs)
Daily settlement by RTGS
Posted to receivers account within 1-2 business days
Typical cost: $0.02 per transaction; fee higher
-
8/3/2019 Ppt Online Payment
4/19
ACH Credit Transaction
BUYER SELLER
SELLERS
BANK
BUYERS
BANK
CLEARINGHOUSESETTLEMENT
BANK
1. BUYER SENDS
AN ORDER TO
BUYERS BANK TO
CREDIT $X TO
SELLERS ACCOUNT
IN SELLERS BANK6. SELLERS BANK
CREDITS SELLERS
ACCOUNT WITH $X
3. CLEARINGHOUSE DETERMINES THAT
BUYERS BANK OWES SELLERS BANK $Y
(ALL TRANSACTIONS ARE NETTED)
4. BUYERS BANK
PAYS $Y TO
SETTLEMENT BANK
5. SETTLEMENT BANK
PAYS $YTO
SELLERS BANK
2. BUYERS BANK
SENDS TRANSACTION
TO AUTOMATED
CLEARINGHOUSE
-
8/3/2019 Ppt Online Payment
5/19
ATM and Debit Networks
-
8/3/2019 Ppt Online Payment
6/19
Debit Card Authorization
A IS MERCHANTS BANK; B IS CUSTOMERS BANK
A AND B BELONG TO DIFFERENT REGIONAL ATM
NETWORKS ON THE SAME NATIONAL NETWORK
DEBIT IS IMMEDIATE WHEN BANK B AUTHORIZES
-
8/3/2019 Ppt Online Payment
7/19
Debit Card Settlement1. NATIONAL NETWORK CLEARS FOR ITS REGIONAL NETWORKS,
SETTLES REGIONAL NETWORKS ACCOUNTS IN CENTRAL BANK
2-3. REGIONAL NETWORK CLEARS FOR ITS MEMBERS THROUGHNETWORKS CLEARING BANK
4-5. ACH OPERATOR FOR REGIONAL NETWORK INITIATES DEBITS
AND CREDITS TO REGIONAL BANKS THROUGH ACH
-
8/3/2019 Ppt Online Payment
8/19
Regional ACH Networks in the US
-
8/3/2019 Ppt Online Payment
9/19
ACHACH
Two types of ACH (Automated Clearing House)
ACH
ACH Credits ACH Debits
Direct Deposit.
Debit Card Account
Direct Deposits
Always initiated by sender
Senders account is debited and
receivers account is credited
Receivers Acct
Bank account
Debit card account
Electronic Drafts
Initiated by senderorreceiver If by sender Sender authorizes a third
party to initiate transaction
If by receiver Receiver initiates
transaction
Also referred to as Direct Payments
ACH Network A batch-process, store and forward forfuture settlement
-
8/3/2019 Ppt Online Payment
10/19
ACH UtilizationACH Utilization
When appropriate to use
Large numberof payments in a single file (batch)
At least one day is available between initiation and settlement
Any size dollar amounts
Examples
Outbound Payroll direct deposit to bank account (ACH credits)
Outbound Payroll direct deposit to debit card account (ACH credits)
Outbound Vendor payments (ACH credits)
Inbound Taxpayer payments (ACH credits or debits)
ACH Transactions can have Addendum Records Remittance data attached
Can be interfaced with A/R system
DOR requires taxpayers to use TXP format
-
8/3/2019 Ppt Online Payment
11/19
NATIONAL AUTOMATED CLEARING HOUSE
ASSOCIATION(NACHA)
Began in 1974.
Oversees the ACH Movement Nationwide.
Regional Payment Associations Oversee the
ACH Movement in Their Area.
SWACHA
1. Based in Dallas
2. Texas, Northern Louisiana & Southern
New Mexico
3. Provide ACH Rule Interpretation,
Assistance, Education
-
8/3/2019 Ppt Online Payment
12/19
NATIONAL AUTOMATED CLEARING HOUSE
ASSOCIATION(NACHA)
NACHA manages the development, administration, andgovernance of the ACH Network.
NACHA-The Electronic Payments Association is a not-for-
profit trade association that develops operating rules and
business practices. NACHA has created the Council for Electronic Billing and
Payment of the NACHA Interopera BILL Initiative of the
Banking Industry Technology Secretariat (BITS).
NACHA activities and initiatives facilitate the adoption of
electronic payments in the areas:-
1. Electronic bill payment.
2. financial electronic data interchange.
-
8/3/2019 Ppt Online Payment
13/19
NATIONAL AUTOMATED CLEARING HOUSE
ASSOCIATION(continue)
3. Internet commerce.
4. presentment.
5. International payments.
6. Electronic checks.
7. Electronic benefits transfer (EBT)
NACHA is not directly involved in the ACH
transactions that flow to and from organizations and
financial institutions
-
8/3/2019 Ppt Online Payment
14/19
ACH PlayersACH Players
ACH Operator(FRB)OriginatingDepository
Financial
Institution
(ODFI)
ReceivingDepository
Financial
Institution
(RDFI)
Originator
(Company /
Employer)
Receiver
(Company /
Employee)
Authorization / Enrollment
1
2 3
4
-
8/3/2019 Ppt Online Payment
15/19
Primary DifferencesPrimary Differences
Wire Transfers
Item Cost - $6.75
Same day funds
Transfer almost
instantaneous
Use for criticalpayment (e.g. debtservice)
ACH
Item Cost < 1 penny
Next day funds
One day delay in
settlement
Used for large batchfiles (e.g., payroll)
State Checks
Average Cost - Range $.74
-
8/3/2019 Ppt Online Payment
16/19
Electronic ChecksElectronic Checks
Loosely used term Refers to two different methodsElectronic Checks
Online Paper Check ACH Conversions
Online Paper Check Developed by Financial Services Technology Consortium (FSTC) Not-for-
profit group of CA banks Initiated using a PIN and digital signature Receiver prints out paper check for deposit
ACHConversions (most common method referred to)
Transactions converted to ACH debits (e.g., ARC, POP, WEB, TEL) Services can be provided by third party processors Account verification determined upfront. Guarantees available. Examples of services provided through third-party CyberSource (POP)
Telecheck: CheckFree: AmeriNet:
Paymentech:
Applies to consumerchecks
only, not business checks.
-
8/3/2019 Ppt Online Payment
17/19
Regulator GovernanceRegulator Governance
Regulation E, per Electronic Funds Transfer Act (EFTA)
Issued by Federal Reserve Bank
Covers ACH and debit cards (but not wires or credit cards)
Consumer protection oriented
Some protection afforded the consumer does not apply to corporate orgovernment customers
NACHAOperating Rules
National Automatic Clearing House Association Applies to ACH transactions only Applicable to both consumer and corporate (including government)
UniformCommercial Code (UCC) Article 4A
Applies to Wire Transfers Only
UniformCommercial Code (UCC)Articles 3 and 4 and Reg CC
Applies to negotiable instruments (checks)
Reg CC issued by Federal Reserve - Applies to checks not EFT
Check 21 (Check image conversion) governed by Reg CC, not Reg E
-
8/3/2019 Ppt Online Payment
18/19
ACH TerminologyACH Terminology
Typical ACH Standard Entry Class Codes PPD Prearranged Payments and Deposits (Consumer payments)
CCD - Cash Concentration or Disbursements (Corporate payments)
CCD+ - Corporate payments with 180 character addenda record
TXP Addendum format for Tax Payments (Used by DOR)
Check Conversion Standard Entry Class Codes POP Point-of-Purchase / Face-to-face (e.g., Wal-Mart)
ARC Accounts Receivable Conversion Non-face-to-face (e.g., Lockbox)
BOC Back Office Conversion Face-to-face, but later converted (Mar 07)Check Conversions not eligible for use with corporate or government checks
and have an amount limit of $25,000
Other Standard Entry Class Codes (Debit entries)
WEB Internet-initiated entries against a consumer account
TEL Telephone-initiated entries against a consumer account
RCK Represented check (representment of a non-sufficient funds check)
-
8/3/2019 Ppt Online Payment
19/19