EC98.ppt

1
Introduction to NACHAs Internet
Council May 2007
2
Mission

• The mission of the Internet Council is to advance
  electronic commerce over open networks by
  enabling digital business in a straight-through,
  secure and cost-effective manner.

3
Membership

• 85 Members
• Regional ACH Associations
• Financial Institutions
• Corporations
• Payment Processors
• EFT Networks
• Technology Providers
• Government Agencies
• For current list of members visit
  http//internetcouncil.nacha.org/membership_info.h
  tml

4
Scope

• Developing Internet payment technologies and
  applications
• Addressing authentication issues and models
• Monitoring industry regulatory compliance
• Working to enhance online privacy and security
• Educating the marketplace about new Internet ACH
  rules
• Initiating compelling Work Group activities
• Fostering industry information sharing and
  networking

5
Value Proposition

• Enrich payments systems knowledge
• Stay current through analysis and data available
  about industry and marketplace trends
• Gain a forward-thinking perspective of the
  industry
• Network with industry thought leaders and experts
  
• Influence future direction of payments landscape
• Shape rulemaking infrastructure
• Participate in Council-driven group projects and
  initiatives

6
Leadership

• CHAIR Fred Laing, II UMACHA
• VICE-CHAIR Bob Housel National City Bank
• Deborah Matthews Jack Henry Assoc.
• Rene Pelegero, PayPal
• Eric Girard, KeyBank
• Don Rhodes American Bankers Assoc.
• David Merritt Mellon Financial Corp.
• Brad Smith EastPay
• Devon Marsh Wachovia
• Barry Weer State Farm Insurance Co.
• Jim Gross Wells Fargo

7
Structure

• The Steering Committee drives the strategic plan
  for the Internet Council.
• Focuses on the Councils mission, goals,
  objectives, and structure
• Identifies potential projects for the future
• Five subcommittees foster member engagement and
  facilitate work
• Liaison
• Marketing and Education
• Meetings
• Membership
• Projects

8
Benefits to Members

• Quality meetings
• Compelling projects
• Networking
• Early identification of industry trends
• Technological expertise
• Industry relationships
• Education and resources
• Diverse membership base
• Subject matter expertise and information sharing

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2007 2008 Strategic Direction

• NACHA Strategic Action Item No. 1 Ensure that
  the Network infrastructure, applications, rules
  and enforcement are consistent with processing
  payments in a secure, reliable and efficient
  manner, and that financial institutions have
  access to effective risk management tools.
• Internet Council Strategic Activities
• Develop guidelines for the secure transmission,
  storage and use of ACH data over unsecured
  networks
• Develop authentication technology solutions
  catalog
• Develop rules or guidelines for ACH Network data
  storage and encryption standards

10
2007 2008 Strategic Direction

• NACHA Strategic Action Item No. 3 Actively
  promote the value and best uses of electronic
  payments to depository financial institutions and
  their customers through marketing, public
  relations, and education.
• Maintain and enhance the value of council
  memberships
• Develop quality council meeting content.
• Enhance networking opportunities, including
  cross-council coordination efforts.
• Conduct annual council evaluation and strategic
  planning.
• Strengthen work group project management,
  functionality and deliverables process.
• Increase meeting attendance numbers.
• Continue to develop guidance/educational
  materials for use of WEB and TEL.
• Continue to address issues related to federated
  identity, identity management, and authentication
  related to payments.
• Continue to enhance industry outreach and
  communication efforts.

11
Current Work Groups/Projects

• ACH Security Workgroup
• WEB Project Workgroup
• Financial Institution Authentication Forum
• Marketing Education Subcommittee
• Also, the Internet Council is actively developing
  new projects and invites proposals.

12
ACH Security Project

• Objectives
• Address broad security and network integrity
  issues related to the ACH Network.
• Develop a set of recommendations for the NACHA
  rules process to enhance the security and
  integrity of the ACH Network.
• Launching new project in todays work group
  session
• Monitor WEB usage and issues surrounding the code
  

13
WEB Project

• WEB Briefs Series
• Informational briefs on rules-related subject
  matter, with links to resources and practical
  examples
• A complete listing of WEB Briefs can be seen on
  the accomplishments document
• Publications
• Recently published, Understanding
  Internet-initiated ACH Debits, 2nd Edition
• Coming in June ODFI Implementation Guide to WEB
• New Project Discussion Today

14
Financial Institution Authentication Forum

• Banks need a forum to talk about the issues,
  raise the level of awareness, and promote the
  industry position
• FI Forum created in June 2004 to respond to need
  for consensus around federated identity, ID
  management, and authentication
• Forum cultivates a unified voice for providing
  feedback to federal government initiatives and
  other standards-setting bodies

15
Marketing Education Subcommittee

• Developed new marketing materials
• Enhanced monthly newsletters and contributes
  articles
• Populating Speakers Bureau
• Developed value proposition statement for council
  
• Analyzed membership survey data for strategic
  planning process

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Now What?

• The meeting starts in a few minutes
• Introduce yourself to other members or guests at
  the meeting.
• Attend a Work Group session to get a flavor for
  the activity (move between groups find a
  comfort zone)
• Provide feedback to Susan, Liz, or any member of
  the Steering Committee
• What works?
• What needs work?
• How do you get involved?

17
Contact Information

• Susan Pandy, Director
• [phone] - spandy_at_nacha.org
• Manages Internet Council activities
• Liz Millard, Assistant Director
• [phone] - lmillard_at_nacha.org
• Oversees administration and logistics
• For additional information on projects,
  activities and upcoming events, access
  http//internetcouncil.nacha.org

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Appendix
19
Past Accomplishments

• The Management of Risks Created by
  Internet-Initiated Value Transfers
• Evaluated risks related to Internet payments
• Certification Authority Interoperability From
  Concept to Reality Results of the NACHA Internet
  Council CA Interoperability Pilot
• Evaluated role of banks as CAs
• Defined legal framework, business practices, and
  technical specifications - published results

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Past Accomplishments (Cont.)

• Certificate Authority Rating and Trust (CARAT)
  Guidelines for Constructing Policies Governing
  the Use of Identity-based Public Key Certificates
• Guidelines for implementing PKI
• Internet Secure ATM Payments (ISAP) Facilitated
  project that developed technology to transport
  Internet-initiated ATM/debit card payments
  secured by digital signatures through EFT
  networks. Results available on Internet Council
  website.
• WEB Entries Influenced and supported the
  development of NACHA Operating Rules for Internet
  ACH payments.

21
Past Accomplishments (Cont.)

• Understanding Internet-Initiated ACH Debits
• Produced publication that gives Internet
  merchants a grounding in the ACH rules applicable
  to WEB entries, the rationale behind the new
  rules, and best practices and advice for
  complying with the rules (just recently updated).
• XML Formatted Remittance Data in the ACH A
  Feasibility Assessment
• Developed white paper, which analyzed the
  feasibility of passing XML-formatted data through
  the ACH.

22
Past Accomplishments (Cont.)

• Risk Management for Consumer Internet Payments
• Developed publication to follow-up the Councils
  earlier 1996 publication, which analyzes risk
  management considerations for ACH, credit card,
  debit card and person-to-person payment systems
  in the context of Internet-initiated payments.
• Fraud White Paper
• Produced a whitepaper which catalogs fraud types,
  case studies, mitigation tips, and resources for
  FIs and merchants.

23
Recent Accomplishments (Cont.)

• Surveying the Landscape for Internet and
  Telephone-initiated ACH Consumer Debits
• This report is based upon the results of a survey
  of a diverse population of financial
  institutions, billers, and merchants to assess
  current trends and business practices in the use
  of Internet-initiated (WEB) and
  Telephone-initiated (TEL) ACH Debits. The report
  is available to members only on the Internet
  Council website at http//internetcouncil.nacha.
  org/, located under the WEB/TEL Research Project