Important Online Payments Survey Deadline December 13 (Includes SampleResponses)
Update: Deadline for participation is today!
Credit professionals who wish to participate in a Federal Reserve survey that will help shape the future of electronic and other payment systems have until the end of the week to take part in the important initiative. Proposed solutions from which will be discussed as part of Credit Congress on June 11 in Orlando.
As part of the Fed effort, the agency has created an online survey about online payments, which NACM urges its membership to complete before its close on December 13, to assist it in learning directly from professionals about issues end users have or believe should be addressed. The survey can be accessed directly here. Questions focus on topics such as increased potential/risk for fraud, international transactions, timeliness of funds availability and efficiency gaps. More details about the initiative are available in the Federal Reserve report titled Payment System Improvement–Public Consultation Paper.
The following is a sample of response answers, based off the experiences of a veteran credit and payments professional:
3. No comment.
4. I agree that it will take public authority and comprehensive changes in the banking system, including the likely elimination of private banking.
4ii. ERP's, Demographics, middleware service providers, etc., will need to play a larger role in the implementation of any solutions. Monetization of the service will play a large role because implementation for the end user (BUSINESS) will be costly.
5ii. I agree but even then, only a small portion of the B2B payments will use this solution because of the divergence of all payment technologies.
6i. ll interesting ideas but which institutions die: Private banking? Debit Cards? Credit Card? ACH? I think they all coexist and seriously doubt the viability of a single solutions that is the answer to the large majority of B2B payment solutions
6iii. Near-real-time may not be good enough...might the product be out the door still if it is less than real-time?
7. Both are necessary.
8. Near real time will not prevent most fraud.
8i. If I am able to access the account information, maybe I am out with the product even faster because the business assumes the account and funds are mine.
9. C2B (customer-to-business) good, B2B (business to business) unlikely changed.
10. Emergence of greater use of credit card technologies in B2B.
12i. Nervous populous about data security.
12ii. Virtually none because of the US appetite for private banking (which I also favor)
13i. Consumers -- I think most who will shift have shifted. Demographics will drive the balance of change over time. For Business -- I think the AP systems (human and technology) are the largest deterrent to change.
14i. I believe demographics are now the greatest contributor to the adoption. I do not think technologies will drive B2B payment behaviors.
14iii. B2B mindset of merchant or merchant expected payment behaviors. If one expects electronic payment, one will likely receive it. But, technologies must be available for B2B implementation of the expectation.
15, I do not believe it will be broadly used, no more so than it is used today.
16. Companies who need cross-border payments MAY use them, but security will be a huge issue.
17i. All are equally vulnerable.
20. Cannot enact the "build it and they will come" mindset, thus, B2B solutions must include the merchants.
- Brian Shappell, CBA, CICP, NACM staff writer