Automated Clearing House News - Third Quarter 1987
Original Publication Date: 1987-Jan-01
Included in the Prior Art Database: 2015-Oct-07
ACH newsletter from 1987
Page 01 of 4
Automated Clearing House News
Third Quarter 1987
New York Automated Clearing House 100 Broad Street
New York, N.Y. 10004
NYACH mandates all-electronic delivery
The New York Automated Clearing House has announced in a letter to all member institutions that it will convert to all- electronic service by January 2, 1990. After that date, NYACH will no longer process any ACH financial transactions using either paper or magnetic tape, or accept paper returns for conversion. NYACH is the first operating ACH in the Federal Reserve Network to mandate an all-electronic environment.
''Our intent is not only to provide the best service and cost benefits to our members,'' says NYACH senior vice pres- ident William M. Walsh, "but also to help them serve their customers. Electronic transmission means secure, timely, reliable, and cost-effective delivery, and that's what the marketplace demands.''
Currently, 364 of the 625 NYACH member institutions are originating and receiving transactions electronically. This represents over 70% of commercial and government volume handled by NYACH. "NYACH has made every effort to keep institutions' conversion costs to a minimum," says Walsh.
Though the NYACH system can interface wi~h computers of any size, most institutions that convert during the next two years will probably choose personal computers, because of their low cost and ease of installation. To interface with the system, members need a minimum-scale IBM-compatible PC, available from any business equipment supplier for about $1,200, and a modem costing around $300. For the institutions that already have this hardware, the only addi- tional piece of equipment necessary is an authentication unit from NYACH, which costs $1,800. Members may elect not to purchase the authentication device, but they must sign a waiver of liability and will be permitted only to receive and not to send transactions. ·
NYACH is providing free to all members personal computer software, technical assistance, training, and documentation. There will be a onetime charge for license and installation of the authentication equipment, but it can be paid on an installment plan.
Members interested in acquiring a PC interface may request a demonstration. NYACH holds frequent PC demonstrations at its Manhattan offices, as well as in various cities through- out the New York-New Jersey area. For more information, contact NYACH executive director Martin Schumer at
(212) 613-0196 or Rick Plummer at (212) 613-0146.
Construction of NYACH data processing site on schedule
Internal construction of the new NYACH computer operations site in New Jersey is nearing completion. The construction staff has been working hard over the last few months to in- stall the data and voice communication networks that will link the new center to other clearing house facilities.
To ensure the same level of technical reliability maintained at the NYCH data center in midtown Manhattan, the New Jersey site...