MasterCard RPPS Home Page | RPPS Update Archives
Editorial Viewpoint Stepping Forward Spotlight On First Express Remittance Processing, Inc. Spotlight On GreenPath Debt Solutions COVER STORY New Initiatives Target Faster Payments, Settlement and... NEWS REPORT Marketing Programs Boost Consumer Adoption of... CASE STUDY Custom Accounts-Receivable Solution from First Express... BUSINESS TOOLS Sign Up for MasterCard RPPS Reporting Services... NEWS REPORT Online Biller/Creditor Directory Helps Customers... NEWS REPORT New Processing Service for Collection Agencies Expands MasterCard RPPS... INDUSTRY INSIGHTS Q&A with Catherine Graeber...		New Initiatives Target Faster Payments, Settlement and Connectivity Options Solutions Promote Expanded Network Participation and Volume Committed to industry-leading service that delivers the maximum volume of electronic payments possible, MasterCard RPPS® is continually working to expand participation in our network and move all customers toward a fully electronic payments environment. As technology changes and as different categories of customers, such as nonbank lockbox providers and small billers, join the network, MasterCard RPPS is evolving to accommodate changing demands, needs, and opportunities. "We want to put the most robust offering in place that we can, to give our customers what they need in a rapidly changing industry," says Tom Smith, MasterCard RPPS, whose Product Development Team is charged with delivering on that objective. With an eye to maximizing participation and volume, the team is now working on three projects focused on enhanced network flexibility for settlement and connectivity: ♦ Expedited payments ♦ Biller initiatives ♦ Funds verification "Each of these projects is in a different phase of product development," says Smith, "and each offers attractive benefits to our customers, current and prospective." Expedited payments Originators are finding themselves in competition with biller-direct sites because many consumers mistakenly perceive that their payments are posted immediately at these sites. Designed to move payments from payer to payee quickly, the new expedited payments service from MasterCard RPPS would offer same-day account posting for electronic payments moving through the network. "We know that expedited payments are a top priority for our customers - and for consumers, who want the assurance that their payments are made on time. This is especially true when the payment deadline is close. The consumer wants to get the payment posted quickly to avoid late fees," says Rick Verderamo, MasterCard RPPS. "Expedited payments, combined with the tremendous convenience of comprehensive electronic payments services at a single location, can help our customers expand their electronic payments volume - and that is a primary goal for us at MasterCard RPPS," he says. MasterCard RPPS is therefore moving ahead rapidly on this project. Once the forthcoming expedited payments service is in place, online payment providers that have made the necessary adjustments to their user interface will be able to alert their consumers that same-day payment posting is available for certain billers. Biller initiatives Lockbox providers that may not handle funds for their billers are participating on the MasterCard RPPS network in growing numbers, and these providers need greater flexibility for posting and funds settlement. At the same time, billers that prefer to manage their own payment receivables have been seeking a solution that will allow them to receive payment data directly from MasterCard RPPS. "We've launched a two-phase initiative that will accommodate the needs of these customers," says Dennis Sullivan, MasterCard RPPS. "In the first phase, we set out to create a solution for the lockbox providers that are not handling funding for their customers. A remittance file will be sent to the lockbox provider, and a funding file will be sent via ACH directly to the biller's bank. This solution provides settlement flexibility versus the Fed Wire alternative," Sullivan adds. "The biller then matches the files to complete the payment process." The second phase of the biller initiatives, which is still in the earliest stages of the product development process, will focus on direct interface with billers. "We recognize the need to create greater flexibility in our solutions so we can reach billers of all sizes," says Sullivan. "Phase two will consider options that allow us to deliver the payment data directly to billers in a format that they can accept. Alternatively, billers could come direct to us to capture the data." Funds verification The funds verification project was initiated in response to inquiries from prospective customers looking for a faster way to come live on the MasterCard RPPS network. "Sponsoring banks provide tremendous value and benefits for organizations that are joining MasterCard RPPS," says Joe Rieker, MasterCard RPPS. "However, for those organizations whose bank does not offer sponsorship and which, therefore, might otherwise be obliged to switch banks, this option offers a fast and viable solution." The service will provide a bank account, owned by MasterCard International, into which originators will deposit payment funds. Originators will transmit payment files to MasterCard RPPS as usual, but before distributing the files to receivers, MasterCard RPPS will first ensure that sufficient funds are on deposit to cover the payments. Should an originator's funds be insufficient, the files would be returned. "We conducted extensive voice-of-the-customer sessions to learn what our customers would want in such a service," says Rieker. "Our solution will accelerate the time frame for going live and offer originators a prefunding option while preserving the good funds environment that sponsorship has always ensured." With coding and system testing now completed, the project is moving to user acceptance testing, with rollout planned for the third quarter of 2005. Printer Friendly Version Back to Top