E-Lockbox file consolidation Howard N. Forman, AAP Senior Vice President Electronic Payments...

e-Lockbox file consolidationHoward N. Forman, AAPSenior Vice PresidentElectronic Payments Consultant

© 2012 Wells Fargo Bank, N.A. All rights reserved. Member FDIC.

Utility Payment ConferenceSeptember 27, 2012

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What is an electronic lockbox?

Consolidation point for online banking bill payments and other “consumer-directed” bill payments

Facilitates an end-to-end electronic link between the biller and the bill payer

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What are the benefits of an electronic lockbox? Financial

– Accelerates receivables posting

– Reduces costs (electronic vs. paper processing)

– Simplifies payment reconciliation

Operational– Simplifies payment receipt process

– Maximizes electronic volume

– Allows for value-added processing

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Basic features of an e-lockbox service

Consolidates payments electronically from multiple sources/bill payment providers– “Best in class” providers will allow aggregation

of other data source (e.g., ACH, lockbox, etc.)

Delivers a “posting ready” data file

Allows transactions to be returned to bill payers, as necessary

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“Best in class” features of an e-lockbox service Direct connections to bill pay service

providers– Robust network of connections – including walk-

in bill payment service providers

– ACH CIE payments

Account validation– Incoming payments verified against acceptable

account structures

– The most sophisticated processors will use your MAM (positive file) for individual transaction validation and additional value-added processing

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“Best in class” features of an e-lockbox service Online exception management

– Transactions failing validation presented for review and decisioning via secure, online service

– Exceptions can be corrected or returned

– Posting file contains only “clean,” corrected payments

Online transaction search/query

Cross-reference processing– “Old account/new account” swapping

– Corrections to rejected transactions stored for use on subsequent payments from the same payor

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“Best in class” features of an e-lockbox service Reversibility processing

B2B payment acceptance– Leverage account validation features on incoming

ACH business payments

– “Unbundle” ACH CTX transactions

“Expedited” payment processing– Ability to deliver walk-in payments real-time/near

real-time

Dedicated implementation and operations teams

Contact us

Howard N. Forman, AAPSenior Vice PresidentElectronic Payments Consultanthoward.forman@wellsfargo.com

Howard N. Forman, AAPSenior Vice PresidentElectronic Payments Consultanthoward.forman@wellsfargo.com

© 2012 Wells Fargo Bank, N.A. All rights reserved. Member FDIC.