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Developer of bank data validation solutions Eiger Systems has announced that its
BANK WIZARD and BILLER WIZARD solutions have been enhanced to support banks
implementing the UK Faster Payments initiative, which is designed to deliver
same day clearing for electronic payments.
Faster Payments will significantly increase the speed of credit transfers from
one bank account to
Initially driven by the Office of Fair Trading Payments Systems Task Force in
conjunction with APACS, the new service will be introduced into the UK by the
end of November 2007 and will be delivered through a joint venture between LINK
Interchange Network Limited and Voca Limited.
Eiger Systems now provides validation components for Faster Payments, which
specialise in bank account validation and bill payment reference number
Matthew Croxford, Eiger Systems’ Business Product Manager, commented: “As
payments made through the Faster Payments service will have to be confirmed to
the user – customer, their bank or the recipient – in under 15 seconds, it is an
imperative that bank account and bill payment details are correct.”
The current UK Faster Payments specification outlines how submitters will be
required to check the beneficiary’s sort code against the Industry Sorting Code
Directory (ISCD) but only encouraged to undertake a ‘basic modulus check’ (an
algorithm that confirms the validity of a bank account linked to a sort code) of
the account number before transmission.
Eiger Systems believes banks will view this minimal approach to validation as
inadequate and will welcome BANK WIZARD’s more comprehensive service compared
with the basic ISCD.
Croxford added: “By using BANK WIZARD, banks will be able to realise the full
benefits of Faster Payments, including ‘STP’ rates (the number of payments
automatically passing directly from payee to the ultimate recipient), which will
ultimately deliver them a competitive edge in the provision of payment services.
“BANK WIZARD achieves this by offering a more comprehensive solution that
includes the incorporation of ‘transposition’ and modulus rules1, actively
researched data – exceeding that which is publicly available – and automated
weekly data updates.
“As consumers will expect a bill payment made under the Faster Payments service
to be settled immediately, it is important that the supporting customer
reference number is also validated to ensure prompt reconciliation of payment.
"Using BILLER WIZARD, banks can ensure that rigorous checking of customer
reference numbers happens at the point of data entry within telephone or
Internet banking systems, minimising the risk of error and an incomplete Faster
Payments service."
Source:
Getting Paid
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