Automated Clearing House News - Second Quarter 1989
Original Publication Date: 1989-Jan-01
Included in the Prior Art Database: 2015-Oct-07
ACH newsletter from 1989
Page 01 of 4
Automated Clearing House News
Second Quarter 1989
New York Automated Clearing House 100 Broad Street
New York, N.Y. 10004
Going electronic: 646 DFls now on-line
As the 1989 year-end deadline approaches in the campaign of the New York Automated Clearing House to become fully on-line, 93.9% of NYACH's transaction volume is now all- electronic. "The 646 DFls fully on-line have done an out- standing job of planning and converting," says senior vice president William M. Walsh. "Many more are now in the midst of testing and cutting over. We are busy working with the remaining DFls to answer their questions and help them make the transition."
NYACH is the ACH network pioneer in converting all partici- pants to electronic transmission. The Board of Directors of the National Automated Clearing House Association, meet- ing in June, sent a resolution to the Federal Reserve urging it to set a sunset date for all depository institutions in the . country to go all-electronic, citing the continuing success of NYACH's campaign, as well as VISA and the Arizona Clearing House.
Starting on this page are questions frequently asked by NYACH participants that have not yet converted, together with NYACH's answers.
The WHYS and HOWS of. electronlc conversion
Q Why is going all-electronic so Important?
A All-electronic is the most timely, reliable and secure method to move consumer and selected business pay- ments. Your customers will become increasingly aware of this ACH service and expect it of your institution.
Q Recent newspaper articles told of computer hack- ing and tampering with d~ta . How is ACH data pro- tected when sent over dial telephone lines?
A NYACH requires all participating institutions, both senders and receivers, to acquire an authentication de- vice for its operations. The device electronically verifies that data transmitted have not been altered. Any devia- tion results in an immediate disconnection and an alert to management.
(continued on following page)
Direct deposit of payroll campaign: success stories are the order of the day
As the national DDP marketing campaign heads toward its September climax, NYACH participants are chalking up suc- cess stories. "We're particularly proud of the recent job we did with United States Life Insurance when they moved their operations unit and almost 500 employees to Neptune, New Jersey," says Howard Kennedy, senior vice president at Midlantic National Bank.
In their new small-town location, employees needed an alternative to running to the bank on lunch hours to deposit their paychecks. Their own banks were now simply too far away. It was a problem for U.S. Life-and an opportunity for Midlantic.
Direct deposit of pay, Kennedy's team c·onvinced U.S. Life, would benefit employees and company at the same time. To win employee acceptance, Midlantic designed a special banking package that included DDP, installment loan dis- counts and credit cards. The result: almost 60% of U.S. Life's...