innovative payment techniques - treasury alliance...25 th annual idea exchange mark k. webster, cpa,...
TRANSCRIPT
![Page 1: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/1.jpg)
25th Annual Idea Exchange
Mark K. Webster, CPA, CCMPartner
Treasury Alliance Group, LLCSpecialists in Payments and Treasury Consulting
Innovative Payment Techniques
![Page 2: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/2.jpg)
Page 1©2006 – Treasury Alliance Group LLC – All Rights Reserved
Agenda
• Payments in Transition• Key Trends• Closing Thoughts• Q&A
![Page 3: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/3.jpg)
Payments in Transition
![Page 4: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/4.jpg)
Page 3©2006 – Treasury Alliance Group LLC – All Rights Reserved
Change is good!
![Page 5: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/5.jpg)
Page 4©2006 – Treasury Alliance Group LLC – All Rights Reserved
Unless you have to pay for it!
1960
![Page 6: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/6.jpg)
Page 5©2006 – Treasury Alliance Group LLC – All Rights Reserved
The battle for dominance
• Coin and currency were dominant until the middle of the 20th century
• Checks became predominant by the 1960s• Credit cards entered the picture in the ’50s • ACH joined the battle in the ’70s• Debit cards in the ’80s
![Page 7: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/7.jpg)
Page 6©2006 – Treasury Alliance Group LLC – All Rights Reserved
Changing Payment Patterns
Source: FRB
![Page 8: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/8.jpg)
Page 7©2006 – Treasury Alliance Group LLC – All Rights Reserved
The Tipping Point
![Page 9: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/9.jpg)
Page 8©2006 – Treasury Alliance Group LLC – All Rights Reserved
Retail Payment Mix
Sources: Unisys, Global Concepts, Talon
![Page 10: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/10.jpg)
Page 9©2006 – Treasury Alliance Group LLC – All Rights Reserved
U.S. Retail Payment Volume
0
20
40
60
80
100
120
1979 1995 2000 2010
(bill
ions
)
ElectronicConversionCheck
Sources: FRB, ABA, Global Concepts
![Page 11: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/11.jpg)
Page 10©2006 – Treasury Alliance Group LLC – All Rights Reserved
Forces behind change
• New Technology• Economics• Channel/Location• Market
demand/acceptance• Need for accurate and
timely remittance information
• Regulatory changes & demands
![Page 12: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/12.jpg)
Key Trends
![Page 13: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/13.jpg)
Page 12©2006 – Treasury Alliance Group LLC – All Rights Reserved
Key Trends
• Check Conversion
![Page 14: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/14.jpg)
Page 13©2006 – Treasury Alliance Group LLC – All Rights Reserved
Payee’s Bank (ODFI)
Consumer’s Bank (RDFI)
ElectronicNetwork
Blanket Authorization
OK-all checks
Check presented at POS
MICR Information Captured
Authorization Signed by Consumer
Check and Receipt handed back to consumer
Point of Purchase (POP)
![Page 15: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/15.jpg)
Page 14©2006 – Treasury Alliance Group LLC – All Rights Reserved
Merchant Consumer’s Bank (RDFI)
ElectronicNetwork
Check presented at Lockbox or
dropbox
MICR Information Captured
Check ImagedConsumer receives
notice in bill
Check Destroyed
Payee’s Bank (ODFI)
Accounts Receivable Check (ARC)
![Page 16: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/16.jpg)
Page 15©2006 – Treasury Alliance Group LLC – All Rights Reserved
Back Office Conversion (BOC)
Check presented at POS
Merchant Consumer’s Bank (RDFI)
ElectronicNetwork
Checks collected in back office
MICR Information Captured
Check Imaged
Check Destroyed
Payee’s Bank (ODFI)
![Page 17: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/17.jpg)
Page 16©2006 – Treasury Alliance Group LLC – All Rights Reserved
Why ARC?
• To reduce deposit fees– Most Billers are saving $.01 - $.03 per transaction with ARC– NACHA quotes 35 – 50% reduction in return fees
• To reduce number of returns– NACHA quotes that this has been reported as high as 50% by
current ARC billers– 15 – 20% reduction is a conservative estimate
• Faster notification of returns– 3-4 days after settlement vs. 5-10 for checks
• To reduce operational costs– Reduced labor, equipment, supplies etc.– Reduced errors, overtime, and holdover
• Faster collection– 1 day settlement for all ACH items versus 0-2+ days for checks
![Page 18: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/18.jpg)
Page 17©2006 – Treasury Alliance Group LLC – All Rights Reserved
Conversion “Challenges”
• Not all checks can be converted!• Choice of payment method moved from payer to
payee• Potential legal issues• Impact on reconciliation/fraud control systems• Ability to get copies of the check
Yes, I KNOW it’s against the rules, but your check IS going to be converted.
![Page 19: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/19.jpg)
Page 18©2006 – Treasury Alliance Group LLC – All Rights Reserved
Key Trends
• Check Conversion• Check Truncation
![Page 20: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/20.jpg)
Page 19©2006 – Treasury Alliance Group LLC – All Rights Reserved
Check 21• Legalized substitute checks• Became effective October 2004 for ALL checks• DOES NOT require image processing• Does create foundational framework for image
Fron
t
Bac
k
![Page 21: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/21.jpg)
Page 20©2006 – Treasury Alliance Group LLC – All Rights Reserved
Intermediary
Paying BankBOFD
Traditional Paper Collection
Check Check Check
Intermediary
Paying BankBOFD
Sub Ck
Substitute Check Collection
ImageCheck
Payment Process
Image
or
![Page 22: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/22.jpg)
Page 21©2006 – Treasury Alliance Group LLC – All Rights Reserved
Truncation “Challenges”
• Procedure changes – Some of your checks will become substitute checks
![Page 23: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/23.jpg)
Page 22©2006 – Treasury Alliance Group LLC – All Rights Reserved
Truncation “Challenges”
• Procedure changes • Service disruptions
– ARP/Positive Pay may be problematic– Statement cycles may be extended– Customer service/problem resolution may take longer– Product changes/enhancements may be delayed
![Page 24: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/24.jpg)
Page 23©2006 – Treasury Alliance Group LLC – All Rights Reserved
Truncation “Challenges”
• Procedure changes • Service disruptions• Price changes
– Bank margin pressures may result in attempts to increase prices
– Physical check processing will become more expensive
![Page 25: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/25.jpg)
Page 24©2006 – Treasury Alliance Group LLC – All Rights Reserved
Truncation “Challenges”
• Procedure changes • Service disruptions• Price changes• Float impact
– Disbursement float will be reduced– Collection float may be reduced– End result will be pressure on available cash
![Page 26: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/26.jpg)
Page 25©2006 – Treasury Alliance Group LLC – All Rights Reserved
And let’s not forget check fraud!
Are you expecting this?
Or this?
More importantly, what will your local prosecutor or AG expect??
![Page 27: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/27.jpg)
Page 26©2006 – Treasury Alliance Group LLC – All Rights Reserved
Payee’s Bank (ODFI)
Consumer’s Bank (RDFI)
ElectronicNetwork
Check presented at POS/Agency
Check Image Captured Images consolidated
and sent to central bank
Remote Deposit Capture
Consumer’s Bank (RDFI)Consumer’s Bank (RDFI)
IMAGE
IRD
ACH
![Page 28: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/28.jpg)
Page 27©2006 – Treasury Alliance Group LLC – All Rights Reserved
Remote Deposit Capture
Potential Benefits • All items eligible• Minimal retraining• No customer notice needed• Reduce costs associated with courier services• Reduce work involved in deposit preparation• Reduce work in account reconciliation• Later deposit deadlines can expedite posting• Remote deposit capture coupled with image exchange
will eventually improve availability and cash flow
![Page 29: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/29.jpg)
Page 28©2006 – Treasury Alliance Group LLC – All Rights Reserved
Key Trends
• Check Conversion• Check Truncation• Debit vs. Credit Cards
![Page 30: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/30.jpg)
Page 29©2006 – Treasury Alliance Group LLC – All Rights Reserved
Card Usage is growing
Source: Nilson Report
![Page 31: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/31.jpg)
Page 30©2006 – Treasury Alliance Group LLC – All Rights Reserved
Debit is taking over
0
2
4
6
8
10
12
14
16
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03
Debit Cards Credit Cards
Purchases (billions)
Source: Nilson Report, FRB
![Page 32: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/32.jpg)
Page 31©2006 – Treasury Alliance Group LLC – All Rights Reserved
Signature vs. Pin Debit
Source: ATM & Debit News, Nilson
![Page 33: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/33.jpg)
Page 32©2006 – Treasury Alliance Group LLC – All Rights Reserved
But don’t forget Wal-Mart
• Signature based debit card interchange fees were reduced by one-third on August 1, 2003
• Beginning January 1, 2004 , merchants may choose which cards to honor
• By or before EOY 2005, banks will need to reissue debit-only cards to distinguish them from credit cards
• And the battle continues…
Even with interchange, cards may be the least cost alternative!
![Page 34: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/34.jpg)
Page 33©2006 – Treasury Alliance Group LLC – All Rights Reserved
Key Trends
• Check Conversion• Check Truncation• Debit vs. Credit Cards• P Cards
![Page 35: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/35.jpg)
Page 34©2006 – Treasury Alliance Group LLC – All Rights Reserved
P-Cards Today – The 3 Ps
![Page 36: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/36.jpg)
Page 35©2006 – Treasury Alliance Group LLC – All Rights Reserved
Procurement Cards
• Widely acknowledged as a “best practice” in purchasing/disbursements
• Gunn Partners study estimates an average savings of $47.75 per transaction based on average procurement cost of $77
• Both MC and Visa are using interchange rates to incent merchants to include detailed (Level III) purchase data with transactions
• Growth in online purchasing makes p-cards even more attractive
![Page 37: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/37.jpg)
Page 36©2006 – Treasury Alliance Group LLC – All Rights Reserved
Payroll Cards
• Particularly popular among retail and hospitality industries.
• Major employers using them include:– McDonald's– Lowe's – Sears – UPS – FedEx– Cingular Wireless – Blockbuster– Office Depot – Coca-Cola
Source: Wall St. Journal
![Page 38: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/38.jpg)
Page 37©2006 – Treasury Alliance Group LLC – All Rights Reserved
• More convenient• Easier to use• Saves time/faster• Can get money faster• Instant access to money• Don’t have to have checking account• Easily accessible
Payroll Cards vs. Direct Deposit
![Page 39: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/39.jpg)
Page 38©2006 – Treasury Alliance Group LLC – All Rights Reserved
Prepaid Cards
• Stored Value Cards• Gift Cards• Campus Cards• Insurance Cards• Incentive Cards• Flexible Spending
Accounts (FSA)• Other???
$0$500
$1,000$1,500$2,000$2,500$3,000$3,500$4,000
2003 2004 2005
Prepaid Cards(millions)
Source: American Banker, Mercator
![Page 40: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/40.jpg)
Page 39©2006 – Treasury Alliance Group LLC – All Rights Reserved
Key Trends
• Check Conversion• Check Truncation• Debit vs. Credit• P Cards• Payment Hubs
![Page 41: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/41.jpg)
Page 40©2006 – Treasury Alliance Group LLC – All Rights Reserved
Enterprise Payments Hub
Data Management
Shared Services Manager
Bank 1
Bank 2
Bank 3
Bank n
Treasury Workstation
Internet
A/P
A/R
POS
Payroll
Payments Customers Rules
Balancing &
Recon
Returns & Repair
Reporting &
Analytics
Security & Risk Mgmt
Payments HubLeast Cost
Routing Translation MessagingRelease Mgmt
![Page 42: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/42.jpg)
Page 41©2006 – Treasury Alliance Group LLC – All Rights Reserved
Why Payment Hubs
• Reduced cost• Improved flexibility• Faster response time• Open standards• Fewer exceptions/Improved STP• Improved compliance• Bank independent• Network agnostic
![Page 43: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/43.jpg)
Closing Thoughts
![Page 44: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/44.jpg)
Page 43©2006 – Treasury Alliance Group LLC – All Rights Reserved
• Payments are more than moving money, they’re also moving and managing information.
• Electronic payments can make the movement of information easier, but may complicate the management of that information if not implemented carefully.
• There will always be new payment methods. Developing a long term implementation and migration strategy is not a one time decision. Rather it is a commitment to your future success and peace of mind.
• Keep your options open. Remember Mencken:“For every complex problem there is an answer that is clear, simple, and wrong.”
Closing Thoughts
![Page 45: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/45.jpg)
Page 44©2006 – Treasury Alliance Group LLC – All Rights Reserved
Payments – What are your goals?
• Maintain controls/minimize cost• Streamline payments process• Convert payments from paper to electronic• Minimize risk and fraud• Increase customer satisfaction
![Page 46: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/46.jpg)
Page 45©2006 – Treasury Alliance Group LLC – All Rights Reserved
Questions?
![Page 47: Innovative Payment Techniques - Treasury Alliance...25 th Annual Idea Exchange Mark K. Webster, CPA, CCM Partner Treasury Alliance Group, LLC Specialists in Payments and Treasury Consulting](https://reader034.vdocuments.mx/reader034/viewer/2022042200/5e9fd194a0bb0250ed332f67/html5/thumbnails/47.jpg)
Page 46©2006 – Treasury Alliance Group LLC – All Rights Reserved
Mark K. Webster, CCM, CPAPartner
Treasury Alliance Group, LLChttp://www.treasuryalliance.com
[email protected](216) 375-4155 (mobile)(216) 932-1678 (office)
For further information: