Browse Prior Art Database

Automated Clearing House News - Fourth Quarter 1989

IP.com Disclosure Number: IPCOM000243644D
Original Publication Date: 1989-Jan-01
Included in the Prior Art Database: 2015-Oct-07
Document File: 4 page(s) / 1M

Publishing Venue

Undisclosed

Abstract

ACH newsletter from 1989

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 24% of the total text.

Page 01 of 4

Automated Clearing House News

Fourth Quarter 1989

New York Automated Clearing House 100 Broad Street
New York, N .Y. 10004
(212) 612-9200

NYACH reaches goal, becomes first fully electronic ACH in Fed system

In a major advance in the evolution of the nation's payment sys- tem, NYACH became in January the first ACH in the Federal Reserve network to convert entirely to electronic operation.

NYACH no longer accepts or produces paper or magnetic tape media. Its move to one hundred percent-electronic sta- tus marks the end of a two-year campaign, as well as a "tre- mendous team effort," said John F. Lee, president of the New York Clearing House (NYCH). "The cooperation be- tween the 793 NYACH participants"-which include major New York money center banks, savings and loan institu- tions, commercial banl<S and credit unions-"and our staff was extraordinary.''

"We are committed to upgrading continually our electronic transfer facilities, " continued Lee. " Effective use of computer and communications technology is essential to accommo- dating growth and maintaining efficiency in modern bank- ing. NYACH 's one hundred percent-electroni_c status is as symbolic an achievement as it is a real one."

But the benefits of all electronic operation are quite real , and mark "a level of efficiency that is, to a great extent, the end of the road," said William M. Walsh, senior vice president of NYCH. In addition to offering " the most secure, timely and reliable delivery mechanism," Walsh continued, "elec- tronic funds transfer (EFT) has reduced single transaction costs to just pennies." " I don't see how we could get much lower," Lee added.

Walsh noted that because the NYACH system could inter- face with any size and brand computer "from mainframe to micro to mini to personal computer," NYACH participants were often able to convert to electronic operation without making substantial investments in hardware. "Our staff is to be commended for developing the necessary software and conducting training sessions for our members," said Martin Schumer, executive director of NYACH. "But reach- ing this goal is just as much an achievement of the NYACH participants as well," he noted, adding that "we did not lose one member during the entire two-year campaign; every par- ticipant complied and converted."

All depository financial institutions belonging to NYACH now originate and receive commercial transactions electronically.

(continued on inside page)

EDI: efficient, dependable, paperless

Electronic funds transfer (EFT) allows ACH participants to send payments electronically through their depository finan- cial institutions (DFls) without the paperwork of checks and the uncertainty of the postal service. Why not send account- ing information electronically as well? By employing elec- tronic data interchange (EDI), corporations can send through their DFls important remittance information with their pay- ments-paper free.

EDI, in its most general sense, is the exch...