Electronic Fund

Transfer (EFT)

Automated Clearing House

(ACH)
A

processing and delivery facility that

provides for the distribution and
settlement of electronic financial
transactions.
Debits and credits are cleared
electronically, rather than through the
physical movement of checks or cash.

ACH
ACH

Credit
- Remittance Express (REX)
- General Lockbox Financial Agents
ACH Debit
- General Lockbox Financial Agents
- FMS KFC

Plastic Card Network (PCN)

The

Internet Credit Card Collections

(ICCC) Program

Benefits
Customer Benefit
- Provides convenience
- Gives instant buying potential
- Provides timely approval
- Has worldwide acceptability

Agency Benefits
- Eliminates bad checks
- Reduces holdings of cash
- Increase sales productivity
- Provide a no-default
collection mechanism for
potential bad debts
- Provides a vehicle to
collect

Paper Check Conversion

(PCC)
at the Point-of-Sale

Convert

personal paper checks into

electronic funds transfer debit
transactions against the check writers
account

PCC use 5 technologies

1.
2.
3.
4.
5.

Imaging
Verification
Conversion
Representment
Reporting

PCC Benefits
It

will greatly reduces indirect costs,

while increasing accountability and
security.
Reduce the workload by removing paper
from the process
Speed the deposit and collection
process
Reduce the number of dishonored
checks accepted
Provide a complete electronic record of
converted checks
Allow enhanced reporting and access to

Disbursement
Mechanisms

Direct Deposit
An

electronic payment alternative that uses

the ACH system.
Payments can be made to individuals or
businesses.
Direct Deposit lets you authorize specific
deposits, such as paychecks and Social
Security checks, to your account on a
regular basis. You also may preauthorize
direct withdrawals so that recurring bill,
such as mortgages, are paid automatically.

Benefits
Recipient

Benefits
- Provides convenience
- Provides a highly dependable, efficient
payment system
- Eliminates lost, forged, or stolen checks.
- increases security
- Provides payment information to the
vendor/recipient
- provides the vendor/recipient with funds on
the payment date.

Benefits
Agency

Benefits
- eliminates check ordering, storage,
and printing costs.
- eliminates postage costs
- provides complete audit trail
- reduces paper work

Vendor Express Program

This

program electronically transfer

money and remittance information
through ACH network.
Electronic data interchange (EDI)
EDI is the computer-to-computer
transmission of business information in
a standardized format.

Benefits
Fully

traceable payments
Lower Government operating costs
through reduced manual payment
processing and streamlined operations

International Direct Deposit

(IDD)

EFT service for foreign-resident payment recipients

IDD enables Federal payments to go directly to the
recipients accounts at financial institutions through
a link between the Fed Reserve Bank and electronic
payment systems in foreign countries
Recipients benefits by having their payments
automatically converted to local currencies at the
lowest exchange rate obtainable, thereby
eliminating bank and check-cashing fees.
IDD also eliminates the possibility of lost or delayed
mail and assures receipt of payment on the
payment date.

Electronic Transfer Account

(ETA)
An

account designed by the Treasury

to ensure that individuals who want to
receive Federal payments
electronically have access to an
account at a reasonable cost and with
the same consumer protections
available to other account holders at
the same financial institution.

Fedwire
Federal

Reserve Communications System

linking the 12 Federal Reserve District
banks, its 25 branches, and certain eligible
U.S. depositary institutions.
A transaction-by-transaction processing
system designed for only high-dollar, lowvolume items that must be received by
payees the same day as originated by the
agency.

Social for worldwide

Interbank Financial
Telecommunications
(SWIFT)
A worldwide interbank
telecommunications network.
Involved more than 7,000 financial
institutions in 192 countries.

Benefits
Recipient

Benefits
- Offers convenience by crediting the
recipients bank account in foreign
currency
- Provides a highly dependable,
efficient mechanism by crediting the
payment on the payment date
- Eliminates lost, forged, stolen checks
- Eliminates check- cashing fees

Benefits
Agency

Benefits

Eliminates checks and postage costs

Less costly than checks
Reduces paperwork and related
administrative costs

Automated Standard
Application for Payments
(ASAP)

An

all-electronic payment and

information system.
ASAP is used to make payments to
designated financial agents that are
performing financial services for FMS
and other Federal agencies.

Benefits

Recipient Organizations Benefits

- Highly secure electronic access from the
recipients desktop.
- Touch-tone phone payment request capability
- Same-day payment within minutes via direct
link to Fedwire.
- Next-day and future-day payments via direct
link to ACH
- Flexibilty to create individual and summary
payment requests
- On-line review of up-to-the-minute ASAP
account balances, account statements,
transaction detail, and payment status.

Benefits
Agency

Benefits
- Highly secure automated interfaces
between agency systems and ASAP for
account management, authorization, and
reporting functions.
- Opportunity to provide input on the
systems design through active ASAP user
group
- up-to-the-minute on-line inquiry of ASAP
account balances, account statements,
transaction detail, and payment status