Centrix Exact/TMS™ - Transaction Management System

Positive Pay, Account Reconciliation & ACH/EDI Reporting

A Powerful Fraud Prevention Solution for Financial Institutions

Financial losses from check fraud reach into the billions each year and affect companies and financial institutions of all sizes. Additionally, the increasing volume of ACH payments means an increased potential for ACH Fraud. No longer is this white­collar crime viewed as a “big bank” problem, nor is risk limited to large corporations. To curb this activity, financial institutions must make positive pay and ACH monitoring an integral part of business banking.

Exact/TMS™ is a transaction management system that encompasses check positive pay with payee match, ACH positive pay and full account reconciliation to provide financial institutions with a powerful fraud prevention tool that is focused on the transaction management needs of corporate clients.

Benefits of Centrix Exact/TMS™

  • ACH positive pay including exceptions for unauthorized ACH activity
  • Automated emails to notify clients when exception items are present or provide an email alert of ACH activity
  • Automated processing of submitted issued check files eliminates manual intervention when clients submit issued check files
  • Check image integration allows the client to view images of exception items
  • Client­level service charge parameters provide flexibility for positive pay service fee income
  • Deposit reconcilement to summarize deposit activity by branch/location
  • Integrated data mapping utility allows the bank to accept issued check file formats that are native to the client’s accounting system, thus virtually eliminating custom interfaces
  • Integration with the teller system provides front line defense against check fraud On­‐line check reconciliation to assist clients with balancing to their bank statement
  • On-line exception management enables the client to make pay/return decisions via the web for both check exceptions and ACH exceptions
  • Payee match electronically compares the submitted payee name to the payee on the check image
  • Reverse positive pay functionality provides financial institutions with added flexibility when presenting corporate clients with fraud prevention options

ACH Positive Pay (ACH Authorization & ACH Transaction Monitor)

The increase in volume of ACH transactions for corporate payments inherently increases the potential for ACH fraud. This reality requires that both financial institutions and corporate customers act more diligently in monitoring ACH activity, and Exact/TMS™ provides a simple, effective solution that greatly simplifies this task. Using Exact/TMS™, ACH business rules are defined at the account level. In turn, every ACH transaction posted to the account is scrutinized to determine whether a transaction warrants further review.

The business rules that support ACH positive pay encompass ACH Authorization and ACH Transaction Monitoring. ACH Authorization is a list of ACH transactions that are pre-approved to post to an account. An ACH authorization rule can include the originating company, standard entry class, transaction type (debit/credit) and maximum dollar amount. ACH Transaction Monitoring is a list of general guidelines for monitoring ACH activity and alerting the client of items that exceed these guidelines. An ACH monitoring rule can also focus on the originating company, standard entry class, amount and debit/credit designation.

Validate the Payee for Enhanced Check Fraud Protection

The Exact/TMS™ Payee Match module enhances the check positive pay process by validating the payee on the check image against the payee name that the corporate client included in their issued check file. This process adds another layer of protection against unauthorized disbursements and fraudulent checks, beyond validating common data such as check number and check amount.

Payee match is enabled at the account level, which allows a financial institution to provide an enhanced level of check fraud protection to only those clients that elect to participate. As such, the client can be service charged accordingly for this service.

The Exact/TMS™ Payee Match module will interrogate the image of each posted check to extract the payee. The payee from the check image is then compared to the payee that was submitted in the issued check file, with each result scored to identify items that warrant further review (payee match exceptions). The system includes flexible payee match parameters that can be customized for each client to accommodate differences in check stock and font size, both of which can affect the payee match score. The check amount can also be a consideration in payee match processing as large dollar items may require a higher degree of payee match accuracy than low dollar items.

Benefits and Points of Emphasis

  • Protect Customers with Improved Transaction Security: Traditional positive pay compares MICR information from the paid check against the data that was submitted by the client (issuer) in the issued check file. Today, this is a basic treasury service product offering for many financial institutions and criminals understand this. Moreover, changing the payee on a check is much more difficult to detect unless the proper technology is in place to automate this process. Exact/TMS™ with payee match provides this technology to community banks.
  • Competitive Advantage: Enhanced treasury management services such as payee match and ACH positive pay provide a competitive advantage over other community banks and enable a financial institution to effectively compete with super regional and national banks for corporate accounts. No longer is payee match technology limited to big banks with big budgets. Centrix has evened the playing field for the community bank.

Enhance Your Treasury Services with Exact/TMS™ Account Reconciliation

Exact/TMS™ is a transaction management system that encompasses check positive pay, ACH positive pay and extensive account reconciliation to provide financial institutions with a powerful fraud prevention tool that is focused on the transaction management needs of corporate clients.

Exact/TMS™ provides corporate clients with numerous ways of managing their transaction activity and reconciling accounts. Because no single method of account reconcilement is suitable for every corporate client, Exact/TMS™ includes a variety of account reconcilement options that the financial institution can make available to clients. Everything from a full on-line reconcilement statement to a downloadable reconcilement file gives Exact/TMS™ the flexibility to meet the needs of corporate clients of all sizes.

For clients that do business at multiple locations/branches, deposit reconciliation proves a valuable tool. This feature provides the client with a detailed listing of all deposit activity for the reconcilement period, grouped by location.

Below is a list of account reconcilement tools available through Exact/TMS™

  • On-line Full Account Reconcilement Statement
  • On-line Check Reconcilement Statement
  • On-line Account Reconcilement File Download (BAI2 format or customized format)
    • Full account reconcilement (all transactions)
    • Partial account reconcilement (paid checks only)
  • Batch Account Reconcilement File Extract (BAI2 format or customized format)
    • The institution delivers the file to the client via an alternate channel (i.e. SFTP)
  • On-line reconcilement reports
    • Outstanding checks
    • Paid checks
    • Stale dated checks
  • Deposit Reconcilement Statement – A statement of deposit activity by location

Web-Based ACH Reporting for Corporate Clients
ACH Returns Processing for the Financial Institution

As ACH gains momentum as a payment channel, it stands to reason that corporate customers will require more sophisticated services related to ACH (EDI) and FI’s will look to automate. To help institutions respond, Centrix offers the Exact ACH Reporting System (Exact/ARS™)

ACH Reporting for Clients: With features ranging from CCD+ delivery to EDI translation to ACH returns reporting, the system provides automated transaction reporting with email notification to clients and secures delivery of the reports/files. From an operations standpoint, this all happens automatically and unattended.

  • Delivery Options - Exact/ARS™ provides two options for delivering reports or files to clients:
    • Web Delivery - Exact/ARS™ generates an email alert to notify the client that an account had ACH activity and the report or file is available for download via the secure web portal.
    • Email Attachments - Exact/ARS™ automatically delivers the statement or file as an encrypted email attachment.

Customize EDI Translation Rules: Exact/ARS™ incorporates EDI translation rules that the financial institution can optionally define to customize the description that appears on the EDI statement for a client. For example, a payment to a municipality (client) from an originator might include "AGO" in the EDI data, but the client may want a more clear description such as "Attorney General Office".

ACH Returns Processing for the FI: Exact/ARS™ provides financial institutions with simple and efficient tool to review and process incoming ACH returns. Each day, the returns processing screen is populated with “today’s” incoming returns along with the charge back account defined for each originator. Back office personnel can review all returns or only returns that need a charge back account defined. Ultimately, a transaction file is created to post on the core processing system.

Exact/ARS™ Features & Benefits

  • Automatic transaction reporting to clients (electronic file or report)
    • EDI payments – translate EDI detail from ACH payments
    • CCD+ healthcare payments
    • ACH returns
    • ACH notice of change (NOC)
    • All ACH transactions
  • Client-level business rules to meet unique requirements
    • Flexible output formats (NACHA, PDF, Excel, Comma Separated (.csv), XML
    • Multiple accounts in a single file/report or a separate file/report for each account
    • Secure, web-based delivery of reports and electronic files
    • Deliver reports for files as encrypted email attachments
    • Customize transaction rules by client to translate EDI data to clear descriptions
  • ACH return transaction posting file
    • Automatically create a posting file to debit/credit the client for incoming ACH returns and eliminate manual data entry of these items

Exact/ARS™ is an extension of the Centrix Exact/TMS™ check positive pay and ACH fraud detection system. Both in-house and hosted implementations are supported.