During 2022 and 2023 CU*Answers will be studying the evolving world of payment processing, specifically the RTP© and FedNowSM programs, and third-party partners who may be able to help us hook into these systems in order to receive funds for our credit unions on behalf of their members.
As part of this research we will be polling our credit union clients on their needs, to help us make a business case for receiving real-time payments through one or both of these systems.
This research period is intended to help us understand:
- The scope of the potential project. Can we leverage infrastructure to accommodate both?
- Who we’ll partner with to connect. Will we connect to both systems, or choose only one?
- The posting process. What is the member experience, and what is the credit union employee experience?
- The settlement process. What is the daily accounting/back office experience?
- The fraud management implications. Do we need to build these, or will we use a third party to meet those requirements?
We have created a document designed to pose questions to third parties and other experts who can help us gain a better understanding of our options and the due diligence and work involved in moving forward with a potential strategic initiative. Questions revolve around how the posting process works from start to finish, reserve requirements and the process for daily balancing and settlement, required technology investments, fraud and security considerations, and pricing model details.
Note: At this time we are interested only in the process of receiving payments for our credit unions on behalf of their members. While we are aware there are emerging technologies for initiating these payments, these are not on our radar at this time.
Remember that these are payment options in addition to regular ACH. Whatever we do with these new payment channels will not have any effect on our current ACH processes and functionality.