Browse Prior Art Database

Electronic Payments Network News Issue No 1 2000

IP.com Disclosure Number: IPCOM000243645D
Original Publication Date: 2000-Jan-01
Included in the Prior Art Database: 2015-Oct-07
Document File: 12 page(s) / 3M

Publishing Venue

Undisclosed

Abstract

EPN Newsletter

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 8% of the total text.

Page 01 of 12

Revolutionizing Electronic Payments

Issue No. 1, 2000

SOCIAL SECURITY AND PAYROLL DIRECT DEPOSITS CLEARED WITHOUT Y2K DISRUPTIONS

SSA ENCOURAGES Fis To REEXAMINE THEIR POLICIES AND PROCEDURES FOR EARLY OR LATE POSTINGS OF PAYMENTS

SOCIAL security and payroll direct deposit transactions, as well as automatic bill payments, were processed and settled without any Y2K disruptions through the Electronic

Payments Network (EPN). EPN is the hub for all electronic trans- fers including direct payment of mortgages, and other bills, direct deposit, and online banking, used by over 900 financial institutions in the tri-state area alone. On January 3, 2000, one million items accounting for $7 billion dollars flowed through the system without incident.

tistic that has given them reason for concern .

SAFE, convenient and reli- able," that is the slogan the Social Security

Administration (SSA) has always used to describe the direct deposit process. As a matter of fact, statistics show that customers who use direct deposit are 20 times less likely to report a payment delivery problem as those being paid by check. However, SSA has started to notice another sta-

   The smooth, "glitch-free" roll-over into Year 2000, was a culmination of EPN's tireless efforts to address the Y2K issue. In 1996, EPN established a Y2K Committee comprised of project managers from industry, financial institutions and the govern- ment to discuss Y2K issues, problems and solutions. In early 1997, NYCH conducted a thorough review of all automated processes to identify problem areas and correct them. As a

   Customers who receive their Social Security payments through direct deposit fre- quently call or come into financial institutions (Fl) each month to determine if their funds have been credited to their accounts. When told the payment is not there, they report nonreceipt to SSA. This sets in motion the trace process.

CONTINUE ON PAGE 3

result, EPN spearheaded efforts to coordi- nate and conduct nationwide ACH Operator tests for Year 2000 compliance. EPN set aside entire weeks of test time, having financial institutions connect to the system, deliver transactions, pick up transactions and run them through their

CONTINUE ON PAGE 2

Jeffrey P. Neubert, CEO of Banc One Payment Services, was named President and Chief Executive Officer of tlie New York Clearing House Association L.L.C. He assumed his new duties on January 3, 2000.

   Mr. Neubert joins the Association from Banc
One Corporation where most recently he was the
Chief Executive Officer of Banc One Payment
Services, a joint venture with First Data
Corporation. Banc One Payment Services is a lead-
ing processor of credit, debit, and check authorization transactions. He also served as a Group Executive for the consumer and commercial finance, mortgage bank- ing, and credit card businesses of the bank.

   Mr. Neubert's banking career began in New York in 1974 with Citibank. Mr. Neubert held a number of marketing and consumer banking pos...