For the past couple of months, CU*Answers and Payveris have been beta-testing a new behind-the-scenes electronic payment path that processes payments via a one-time-use “virtual card.” The new path is used for eligible payees such as mobile providers, telcos, cable and satellite TV companies, many utilities and some insurance companies. While the bill pay user interface has not changed, this new path provides a secure, more efficient, and much faster way to route payments electronically. In fact, with this path many more payees who currently must be paid via check can now be processed electronically.
So far the process seems to be working very well, but with any new product introduction there are things to learn and adjust. For example, payments processed via virtual cards are riding the MasterCard credit card rails. That means that a member visiting a biller’s website to confirm payment may see a reference to MasterCard as the form of payment.
Another difference has to do with how returned payments are handled, and in fact we’ve already made some tweaks in the process based on early results. With other payment methods, billers who don’t allow overpayments simply use their own procedure for returning funds to the member (such as sending them a check), and the credit union is not even aware when it happens. The initial technique for processing returns on virtual card payments was awkward, so starting now, if a virtual card payment fails, has a partial return, or is fully returned, an ACH credit will be posted directly to your member’s account.
We’ll keep you posted as the process continues to evolve and improve over time. We are excited to partner with Payveris as they continue to evolve new methods to process payments more quickly and more effectively for our credit unions and their members.