EBIDS Pilot Launch: Bill Delivery

1
EBIDS Pilot LaunchBill Delivery Payment via
the ACH to Connect Billers, FIs and Consumers
2
Agenda

• EBIDS Concept
• Processes
• Biller Enrollment
• Consumer Enrollment
• Bill Presentment
• Bill Payment
• Benefits
• Pilot Status

3
The EBIDS Breakthrough

• Bill delivery The ACH is an interoperable,
  rules-based, secure network that can provide a
  ubiquitous bill delivery/payment channel to
  thousands of FIs and millions of businesses
• Bill payment The ACH credit model is a
  low-risk, low-cost option that eliminates
  non-electronic payments and user-based exceptions
  from online banking when coupled with bill
  presentment.
• New revenue paradigm EBIDS proposes a business
  model for banks to be compensated for enrolling
  consumers and presenting consumers bills, and
  provides a least cost routing option for payment.
• Pilot sponsored by NACHAs Council for Electronic
  Billing and Payment

4
Electronic Billing Information Delivery Service
(EBIDS)

• Consumer enrolls for ebill via Internet banking
  with consumers bank
• Biller (via a bank) sends summary billing
  information/remittance data in an ACH addenda
  record with a URL to provide access to bill
  detail
• ACH network serves as switch and delivers
  summary bill information to consumers bank
• Consumers bank provides billing information to
  consumer via Internet banking system
• Consumer authorizes credit payment, transacted
  through normal ACH processes with remittance data

5
Enrolling Billers Biller Directory
6
Why a Directory?

• Allows for data capture, storage and retrieval of
  biller and bank information.
• Supports consumer banks need to know which
  billers are participating
• Supports consumer enrollment and delivery of
  electronic payments with remittance data
• Support delivery of epayments without e-bills
• Ensure e-payment and remittance data go to most
  current and correct electronic lockbox
• A web-based application

7
Biller Profile Information
8
Consumer FIs download biller directory data via
XML file, add biller to their billpay system
9
Consumer Enrollment
Automated Enrollment Entry (ENR) via the ACH
2. Consumer Financial Institution (CFI) initiates
ENR for each biller and transmits entries to ACH
Operator
3. ACH Operator routes ENR to appropriate BFI
Consumer Financial Institution (CFI)
Biller Financial Institution (BFI)
ACH Operator
4. BFI delivers ENR to biller biller enrolls
consumer
1. Consumer enrolls through CFI providing the
required enrollment info
MAINTENANCE Consumers may deactivate their EBIDS
enrollment through the same process flow through
the CFI
Consumer
Biller
10
(No Transcript)
11
(No Transcript)
12
(No Transcript)
13
(No Transcript)
14
(No Transcript)
15
ENR Sample 7 Addenda Record
16
Enrollment Acknowledgement
ENR Enrollment Confirmation
3. ACH Operator routes ENR to CFI, CFI updates
bill presentment data system with enrollment
status
2. BFI transmits ENR to ACH Operator for delivery
to CFI
Consumer Financial Institution (CFI)
Biller Financial Institution (BFI)
ACH Operator
1. After accepting ENR, Biller transmits
acknowledgement to BFI to confirm receipt and
acceptance (or rejection)
4. Consumer connects to CFI system to view
enrollment status
Consumer
Biller
17
Bill Presentment
Zero-Dollar CTX Bill Presentment
3. ACH Operator routes CTX to CFI, CFI updates
bill presentment data system with new bill
2. BFI transmits CTX to ACH Operator for delivery
to the CFI
Consumer Financial Institution (CFI)
Biller Financial Institution (BFI)
ACH Operator
1. After receiving ENR and enrolling consumer,
Biller transmits zero-dollar CTX with bill
summary data embedded in an addenda record
4. Consumer logs on to CFI to view bill
Consumer
Biller
18
Click here to see ebill
19
Bill detail from Verizon site no sign-in required
20
Accessing Full Bill Detail SAML Server
(Strategic Assertion Markup Language)

• Consumer clicks to view bill on the consumer FI
  site then receives bill detail from the biller
  site
• SAML is a message protocol for passing the
  consumer FI credential to the biller, without
  requiring the consumer to log-in with the biller
• Accomplished through the exchange of assertions
  and seamless to the consumer
• Result a single sign on

21
CTX (Corporate Trade Exchange) for Bill
SummarySent by Biller to Consumer FI Sample
7 Record
CTX ADDENDA RECORD for EACH CONSUMER
22
Bill Payment
CIE Bill Payment
2. CFI sends CIE to biller via the ACH Operator
3. ACH Operator routes CIE to appropriate BFI,
BFI credits Biller account
Consumer Financial Institution (CFI)
Biller Financial Institution (BFI)
ACH Operator
4. BFI routes Biller remittance identifier data
to Biller Biller credits consumer account
1. Consumer authorizes payment to Biller after
viewing summary bill on CFI system
Consumer
Biller
23
(No Transcript)
24
(No Transcript)
25
CIE (Consumer Initiated Entry) Sent by Consumer
FI to Biller Sample 6 Record
ENTRY DETAIL RECORD (CIE)
26
FI Benefits

• Supports online banking lowers attrition,
  higher account balances, increases cross-sell,
  lower service costs
• EBIDS leverages ACH Network for enrollment,
  presentment, and payment
• Lowest cost channel and best potential reach
• Uses industry standards NACHA rules
• Non-proprietary
• Provides compensation to consumers financial
  institution new revenue stream
• Enables a more direct working relationship
  between biller and banks for EBPP
• New revenue opportunity for bill
  delivery/remittance services

27
Consumer Benefits

• Privacy of information financial account
  information remains with financial institution
• Remains in control of account and timing of
  payment
• Access to more bills, bills are consolidated at
  one site
• Access to bill detail through single sign on

28
Biller Benefits

• Meets preference for multiple channels
• Increased adoption
• Reduces unapplied payments
• Guaranteed funds
• No administrative returns
• Accelerated posting of payment
• Cost reduction
• Improved customer experience

29
Pilot Status

• EBIDS Product Design complete
• Processes, rules, and data formats for consumer
  enrollment, presentment and payment
• Biller Directory complete
• SAML Server in testing phase
• Pilot revenue model complete
• Participant system update and integration -
  ongoing
• Target date for launching transactions 2nd
  quarter 2007

30
Questions?
31
Contacts

• Rob Unger, Senior Director, Network Services,
  NACHA, runger_at_nacha.org, 703-561-3913
• Angeline DePauw, Director Billing Processing,
  Verizon, angeline.depauw_at_verizon.com
• Chris Huppert, Senior Vice President, Wells
  Fargo, huppertc_at_wellsfargo.com, 415-498-1901
• Mike Taipale, Senior Research Consultant, Federal
  Reserve Bank of Cleveland, mtaipale_at_clev.frb.org,
  216-579-2062