Exploring Faster Payments Use Case Opportunities. August 4, 2015

Transcription

1 Exploring Faster s Use Case Opportunities August 4, 2015

2 The Clearing House is developing a real-time system is designed to address unmet customer needs across a number of targeted use cases Business to to Temporary employee wages Emergency payroll Urgent B2C (e.g. disaster relief) Non-commerce payments (e.g. rent payment to a roommate, emergency funds for a family member) Urgent Account-to-Account transfers (e.g. to fund investments or purchases) Informal services (e.g. babysitting, lawn care) to Business Immediate bill payments with acknowledgment Some e-commerce purchases Business to Business Just in time payments to suppliers Immediate bill payments with acknowledgment 2015 The Clearing House s Company L.L.C. 2

3 How do we define real-time payments? IMMEDIATE Ability to send or receive payments 24/7 Real-time access to payment status information for senders and receivers Immediate availability of funds for receivers SAFE Credits only s are irrevocable Process to request return of erroneous payments Value limits on transactions Settlement approach that mitigates risk of loss Use of tokens to protect account data Requires minimum threshold level of security and privacy protection of participating financial institutions Support for anti-fraud, anti-money laundering and OFAC/sanctions compliance process USEFUL Extensive set of payment and nonpayment messages Ability to initiate payments based on alias instead of an account number (Directory Services) Global compatibility to the extent it is consistent with domestic requirements 2015 The Clearing House s Company L.L.C.

4 The real-time payment system includes features that support product development by financial institutions Feature Real-time Platform Advantage Credit Push payments Customers send payments directly from their existing accounts, providing greater customer engagement and transparency than alternative payment services Standard but extensible message formats Supports independent product development by financial institutions through powerful, flexible standards while ensuring the end-to-end process is consistent and reliable Extensible standard messaging is the basis for payments/commerce integration Real-time messaging with bank-grade security Gives financial institutions tools to create a superior customer experience in applications such as mobile banking, P2P transfers, bill payment, and just-in-time B2B transactions Integrated tokenization and directory services Eliminates need for customers to share sensitive account information or know the routing details of recipients Global compatibility Conformance to ISO payment formats and global conventions for its application to real-time payments Immediately allows FIs and customers to use the same formats, technology and processes across borders; eventually supports international payments through interoperable domestic payment systems 2015 The Clearing House s Company L.L.C. 4

5 s Messaging Toolkit Real-time exchange of financial and non-financial messages that support a variety of use cases The following messaging requirements have been defined to support real-time payments: Real-time transmission of payment and non-payment messages Non-payment messages support value-added services and administration Related messages can be linked into complex transactions s can carry remittance data and reference to external data and processes for extended functionality Types (not including status messages) Credit Transfer basic multi-purpose payment message Request for to support P2P funds request, e-invoice or e-billing Acknowledgment By message from the receiver to the sender regarding payment disposition (e.g. invoice paid, goods, shipped, etc.) Request for Information & Response receiver request for additional information about a payment (e.g. requesting customer account number, invoice number or purpose of payment) Remittance Advice extensive remittance detail not included in the Credit Transfer message 2015 The Clearing House s Company L.L.C. 5

6 to Instruction Status s System Instruction Status Service Service Service 2015 The Clearing House s Company L.L.C. 6

7 to With request for information Instruction Status s System Instruction Status Service Request for RFI Service Request for RFI Service Response to RFI Response to RFI 2015 The Clearing House s Company L.L.C. 7

8 to Urgent Account-to-Account Instruction Status s System Instruction Status Service Service Service 2015 The Clearing House s Company L.L.C. 8

9 to for Informal Service Instruction Status s System Instruction Status Service Request for ACK by Service Request for ACK by Service 2015 The Clearing House s Company L.L.C. 9

10 Business to Temporary Employee Wages Instruction Status s System Instruction Status Service Service Service Business 2015 The Clearing House s Company L.L.C. 10

11 Business to Urgent B2C (e.g. Disaster Relief) Instruction Status s System Instruction Status Service ACK by Service ACK by Service Business 2015 The Clearing House s Company L.L.C. 11

12 to Business Immediate Bill Instruction Status s System Instruction Status Service ACK by RFI Response to RFI Service ACK by RFI Response to RFI Service Business 2015 The Clearing House s Company L.L.C. 12

13 Business to Business Just in Time s to Suppliers s System Instruction Status Instruction Status Service Request for Remittance Advice Service Request for Remittance Advice Service Business ACK by ACK by Business 2015 The Clearing House s Company L.L.C. 13

14 Real-time payments are a flexible, extensible platform for innovation: B2B payment illustration ILLUSTRATIVE ONLY Treasury Management System Small Business Banking The Large Supplier s bank creates treasury management products and custom solutions appropriate for its customer Non-payment messages and links to outside data support value-added products The Small Business s bank creates products tailored to small-business needs based on standard messages E-invoice Product Request for (with link to invoice) Cash Management Workstation Large Supplier Real-time Receivables Online Banking s Small Business Buyer Logistics Integration Confirm (with link to shipping info) Mobile Banking Alert Legend, Clearing & Settlement New Digital Commerce Features 2015 The Clearing House s Company L.L.C. 14