Executive Summary
This Members Memo provides the latest information regarding NACHA’s EBIDS pilot. In particular, RDFIs are encouraged to consider the multiple opportunities for expanding corporate receiver services, and increasing efficient utilization of the ACH Network. A number of corporate billers have expressed interest in using EBIDS for eBill distribution, but the requirements to align budget and IT resources are extending readiness dates. While some interested billers may not be able to originate eBills through EBIDS at the moment, they can still participate in the pilot. This memo advocates that RDFIs enroll corporate billing customers in the EBIDS Biller Directory so that participating consumer banks can originate ACH credit payments (CIEs) to the billers as a phased approach to full EBIDS deployment.
Background
EBIDS, or the Electronic Billing Information Delivery Service, is designed to increase the availability of electronic bills for consumers, and to provide revenue opportunities for financial institutions serving both consumer and business customers. In EBIDS, eBill transactions flow through the ACH Network. The purpose is to leverage the open standards, interoperability, and ubiquity of the ACH to increase the number of service providers, thereby growing the volume of eBills. Financial institutions serving consumers will earn revenue for every eBlll enrollment they originate, and every eBill they present to consumer customers. Financial institutions serving business customers can extend their treasury and ACH product services to include eBill origination, payment concentration, and remittance delivery.
EBIDS was launched to the general public in September 2008 and transaction volume continues to grow between the participating organizations. Verizon Communications, supported by JPMorgan Chase, is sending eBills via EBIDS to customers at Wells Fargo and Dollar Bank. Other organizations that have signed on to support EBIDS include HSBC Bank, USA, iPay, Fidelity National Information Systems, PM Systems, and Yodlee. A full list of participants is available at the EBIDS website: http://www.nachaebids.org/
FI Opportunity
The EBIDS solution is available today, offering cost savings for billers and revenue opportunities for financial institutions. Financial institutions may participate as a consumer bank and/or a corporate bank, and will earn revenue accordingly. NACHA seeks more biller participants, and is advocating that RDFIs consider a phased approach for recruiting billers to EBIDS.
As noted, a number of corporate billers have expressed interest in using EBIDS for eBill distribution, but for various reasons are not able to distribute eBills at this time. These billers can still participate in EBIDS, and can enroll to receive ACH credit payments from participating consumer banks. RDFIs can sponsor billers into the EBIDS Biller Directory in a phased approach.
In the initial phase, billers who are not yet ready to send eBills can enroll in the Biller Directory as “payment only” billers. The Biller Directory includes all of the key payment instructions that would allow a biller to receive ACH credit payments electronically from participating consumer financial institutions. At a later date, eBill functionality and instructions can be added to the Biller Directory when the biller is ready. This approach provides treasury banks and their business customers an easy path to get started and still enjoy the benefits of EBIDS.
How to participate
The process of getting started with the EBIDS payment function is simple. A treasury bank:
· signs an agreement with NACHA to offer EBIDS to its customers
· obtains credentials for accessing the Biller Directory.
· enrolls their biller customer in the EBIDS Biller Directory
Educational Resources
For more detailed information visit the new EBIDS website http://www.nachaebids.org/
Staff Contact
For more information about the EBIDS Pilot and the Pay Only opportunity, please contact Rob Unger at runger@nacha.org, 703-561-3913.