Faster Payments will significantly increase the speed of credit transfers from one bank account to another. 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 validation. Matthew Croxford, Eiger Systemsâ Business Product Manager, comments: âAs payments made through the Faster Payments service will have to be confirmed to the user â bank, customer or recipient â in under 15 seconds, it is an imperative that bank account and bill payment details are correct.â
The current UK Faster Payments specification outlines how submitters will be required to check the beneficiaryâs sort code against the Industry Sorting Code Directory (ISCD) but only encouraged to undertake a basic modulus check of the account number before transmission. Eiger Systems believes banks will view this minimal approach to validation as inadequate and will welcome BANK WIZARDâs more comprehensive service compared with the basic ISCD.
âBy using BANK WIZARD, banks will be able to realise the full benefits of Faster Payments, including increased STP rates, which will ultimately deliver them a competitive edge in the provision of payment services,â continues Matthew Croxford. âBANK WIZARD achieves this by offering a more comprehensive solution that includes the incorporation of transposition and modulus rules, actively researched data â exceeding that which is publicly available â and automated weekly data updates.â
BANK WIZARD can be implemented within banksâ remote banking infrastructures as well as organisationsâ payment applications to provide comprehensive bank account checking, ensuring that destination account details are correct first time and that the account can accept Faster Payments.
Croxford concludes, âAs 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.â
Eiger Systemsâ development strategy also includes the release of an enhanced version of EigerPAY Gateway to support Direct Corporate Access (DCA) to UK Faster Payments.