2016 National NCP Day - ECCHO · PDF file2016 National NCP Day “Federal Reserve Adjustments Update” ... ENC, 32% NCH, 17% ERR, 2% WIC, 2% All Other, 6% . Incoming Volume from Financial

2016 National NCP Day

August 8, 2016

Copyright© 2016 by the Electronic Check Clearing House Organization

(Certain contributed content subject to third party copyrights)

Recognition for NCPs &

Continuing Education Seminar

NOTICES

These program materials may not be reproduced or published, in whole or in part, without the express permission of ECCHO. Copyright© 2016 by the Electronic Check Clearing House Organization

2 National Check Payments Certification

This training course may provide an introduction to or summary of various aspects of check payments and the legal and rules framework for check image exchange. Responsibility for compliance with image exchange rules, and/or the legal, operational and regulatory requirements applicable to check image exchange, remains at all times with the financial institution participating in check image exchange and/or the individual or company using a check image exchange service. This presentation and the information contained herein is not intended as legal or compliance advice or recommendation to any person or company. This document could include technical inaccuracies or typographical errors and individual users are responsible for verifying any information found in this presentation and related “live” webinar or webinar playback. Financial institutions should consult with their legal counsel regarding legal and operational requirements applicable to any check image exchange program they may offer or in which they participate.

Today’s Agenda • Welcome • What is NCP Day? • Recognition of NCPs

–Class of 2016 –High Score(s) in 2016 –First NCPs in State(s) –Drawing for ECCHO/NCP Workshop

• Continuing Education session –“Federal Reserve Bank RPO – Check Adjustments” Guest speaker: Becky Frasier, Director of Adjustments

• Q&A


Now that you are an NCP…

We’ve set aside a day just for you to. . .

4

What is NCP Day?

• A day in August each year to honor and recognize all NCPs –An opportunity to celebrate YOU as an NCP, your

staff NCPs, and your member NCPs –National day of recognition: Others across the

country will be celebrating too! –Bring focus to the NCP program and raise

awareness through unique celebrations within each of your organizations

• Plus. . .unique industry perspectives with an educational session each year!

5 NCPC Continuing Education Program

2016 NCP Program

Happy 6th Anniversary for the NCP Program!


2016 NCP Program • Welcome 105 new NCPs for 2016!

• NCP Stats (to date)

– 1,256 registered for exam – 1,021 have taken NCP exam – 624 NCPs

• Industry support for the Program

– Over 90% recommend NCP, believe it will help their career, and work for organizations that recognize and value the NCP


2016 NCP Program: Who Takes the Exam?

• Historically, most test-takers are from financial institutions

• Non-FI test-takers list their organization type as: –Clearinghouse staff –Hardware/software

providers –Processors –RPA staff


FIs 93%

Non FIs 7%


Payment /Check

Ops 70%

Prod Mgmt/Cash

Mgmt/ Treasury

4%

Compliance/ Audit/Legal

17%

Other 9%


• Majority of test-takers’ primary function is Payment or Check Operations

• Doubled the number of test-takers this year in Compliance/ Audit/Legal areas

20+ Yrs 16%

11 to 20 Yrs 24%

6 to 10 Yrs 16%

2 to 5 Yrs 22%

<2 Yrs 22%



• New check payments professionals are taking the exam – 44% of the 2016 test-

takers reported 5 years or less work experience in a check-related function

Now that You’re an NCP

• RECOGNITION: All NCPs listed in website directory: www.eccho.org/ncpc_current_ncp_dir

• MAINTAIN: Continuing education guidelines to retain NCP status: www.eccho.org/ncpc_cont_edu

• SHARE: Become guide through the NCP Guide Program: www.eccho.org/ncp_guide National Check Payments Certification 11

http://www.eccho.org/ncpc_current_ncp_dir

http://www.eccho.org/ncpc_cont_edu

http://www.eccho.org/ncp_guide

Congrats to NCPs of 2016 Margaret Allmann BMO Harris Bank, National Assn

Julie Burley Eagle Bank and Trust Co.

Mary Chouinard Financial Plus FCU

Earle Armstrong COCC

Dijana Caister Visions Federal Credit Union

Susan Christopherson Mutual of Omaha Bank

Philip Arnold III TD Bank, N.A.

Brandi Carter Republic Bank of Chicago

Stephanie Clabaugh Bank Iowa

Jamie Black Transportation Alliance Bank, Inc.

Sean Carter New England Automated Clearing

Sarah Clark Bank of Franklin County

Elizabeth Bloodgood Jack Henry & Associates

Lisa Chambers TD Bank, N.A.

Herman Cortez Jr. Bank of America

Amy Braun Sunrise Banks

Lindsay Chambos Alaska USA FCU

Shawna Cox Intrust Bank

Jennifer Bryant Quail Creek Bank

Michael Cho Hanmi Bank

Michael Cuccinelli Alpine Bank & Trust Co.

12

Congrats to NCPs of 2016

13

Leonora Dapar-Magalona VyStar Credit Union

Tara Edmonds South State Bank

Ariel Harrell Community Bank

Erin Davenport Chemical Bank

Amanda Esposito Newburyport Five Cents Savings Bank

Dusty Harvey Heritage Bank

Suzanne Dawson Southern Bancorp Bank

Karen Evans National Cooperative Bank N.A.

Theodosia Hatter Alloya Corporate FCU

Alice Delgado Arizona Central Credit Union

Ashley Fuglseth San Diego Private Bank

Marisa Hicks MnIPC

Phyllis Ann Delvin Gesa CU

Megan Genteman Forward Bank

Hilary Hobson FirstMerit Bank

Craig Dose Bridgewater Bank

Sandra Gobin NEACH

Michael Hoefler First State Bank Nebraska

Deborah DuBois Alloya Corporate FCU

Maria Grenier Savings Institute Bank & Trust

Stacy Holly Tucson FCU


14

Hector Huerta East West Bank

Allen Klein Commerzbank AG

Lindsey Martin Truxton Trust

Danielle James Valliance Bank

Cynthia Klingaman Bank of Hemet

Dawn Matthews Hanmi Bank

Averee Jimenez MnIPC

Tia-Lynn Leong Aloha Pacific FCU

Randi McKenna Navy Federal Credit Union

Vandana Kanthed

Michelle Lindquist Michigan Schools & Government CU

Sylvia Montes Flores Mutual of Omaha Bank

Christine Kehrly Horizon Bank SSB

Linda Linn Centrue Bank

Eric Mull Capital One Bank, N.A.

Mitchell Kenady UMACHA

Mercedes Little Citizens Business Bank

Yuri Navarro TDECU – Your Credit Union

Megan King America First Credit Union

Adriana Malitz Covantage Credit Union

Laura Desterhoft Nelson WACHA


15

Cathy Nguyen Territorial Savings Bank

Bentley Pollard City Bank

Melissa Schroepfer First Federal

Kelly O’Donnell Gorham Savings Bank

Jessica Price Franklin Savings Bank

Haeza Seeke

Kara Pachicano Amplify FCU

Mariegrace Quatchon Foundation Bank

Tracy Shaikh Golden 1 CU

Mary Peltier Eastern Bank

Scott Rembis Century Bank and Trust Company

Lily Shelton Astoria Bank

Brittani Phonsavanh UMACHA

John Riviere Navy Federal Credit Union

Rachel Shepard Wells Fargo & Company, N.A.

Carl Pickens MACHA

Arleen Sanchez Provident Savings Bank

Melanie Sherwood Commercial Bank

Mary Beth Pieper Wells Fargo & Company, N.A.

Christine Scheid First Bank Financial Centre

Jack Smith Catalyst Corporate FCU


16

Molly Starke First Iowa State Bank

Mary Jo Valente Bessemer Trust Company

Renee Weber Rosedale Federal

Mary Taylor Axiom Bank

Rosalie Van Doren First Foundation Bank

Dustin Williams 4Front Credit Union

Cha Thao-Vang United Bankers Bank

Alecia VanderPlas Bank Iowa

Daniel Wilson SC County Bank

David Thibault PeoplesBank

Ashley Wade Air Force Federal Credit Union

Karen Wolfe CenterBank

Clement Thompson Navy Federal Credit Union

Melinda Walker North American Banking Company

Sheri Wood Backlund Investment Company

Lisa Troche MnIPC

Marian Walters Coleman County State Bank

Lori Wunder Bessemer Trust Co

Roxanne Tucker Bank of Bridger, N.A.

Jared Watkins The Highlands Bank

Lyndsay York Midwest Independent Bank

What NCPs are saying. . .


Recognition of High Scorers

Congratulations 2016 Class!

–Craig Dose Bridgewater Bank –Michael Hoefler First State Bank Nebraska –Jessica Price Franklin Savings Bank


First NCPs in Each State

Congratulations! • Alaska:

–Lindsay Chambos Alaska USA FCU


Just Two States Remain without NCPs

• New Mexico • Rhode Island

New for 2017

$100 donation to the charity of choice for the first NCP in each

of these states!


Thanks to Our Partners! • ePay Resources (formerly EastPay and SWACHA) • EPCOR • First National Bankers Bank (FNBB) • MACHA • NEACH • PaymentsFirst • Southern Financial Exchange (SFE) • The Clearing House Payments Authority • UMACHA • United Bankers Bank (UBB) • WACHA • WesPay


And the Winner Is. . .

• One free ECCHO-hosted NCP workshop –Drawn from registered attendees

Congratulations!

• Contact ECCHO at [email protected] to redeem your free workshop!


mailto:[email protected]

2016 National NCP Day “Federal Reserve Adjustments Update”

Presented by: Becky Frasier

Copyright© 2016 by the Electronic Check Clearing House Organization (Certain contributed content subject to third party copyrights)

Continuing Ed (CE) Seminar

Becky Frasier, Director - Adjustments

• Director of FRB Atlanta RPO Exceptions Research Department which includes all check adjustments – Has been with the Fed now for 16 years

• Responsible for the day to day adjustment operations along with other exception processes where additional research may be needed

• In 2012 she became the director of the adjustments department

• Worked in commercial banking operations before joining the Federal Reserve Bank

• Becky has a BS in Mechanical Engineering and an MBA


FRB RPO CHECK ADJUSTMENTS

August 8, 2016

Agenda 26

Top Incoming Adjustment Types from Financial Institutions

Volume Trends Common Mistakes Upcoming Adjustment Changes

Volume Snapshot (1st Half 2016)

Six Adjustment Types account for 95% of the cases received for first six months of the year: PAID ENC NCH/NCI ERR LC WIC/URCC

PAID, 37%

ENC, 34%

NCH, 17%

ERR, 3% LC, 2%

WIC, 2%

All Other,

5%

Incoming Volume from Financial Institutions

January 2016 - June 2016

27

Year over year comparison

PAID, 41%

ENC, 32%

NCH, 17%

ERR, 2%

WIC, 2%

All Other, 6%



PAID, 37%

ENC, 34%

NCH, 17%

ERR, 3% LC, 2%

WIC, 2%

All Other,

5%



28

Paid Cases

Fed estimates of PAID adjustment requests received show:

71% show both items are from same depositor 29% show items are from two different depositors 13% go back to the 1st presentment 42% go back to the 2nd presentment 45% go back to items presented on the same day

29

Volume Changes

Incoming commercial adjustment volumes have not trended in a consistent manner: % Change of Incoming Adjustment

Cases

2008

2009 -22%

2010 -29%

2011 -24%

2012 -2%

2013 -3.8%

2014 -1.2%

2015 + .7%

30

Trend Comparisons – FWD/RTN Ja

n-13

Feb-

13M

ar-1

3

Apr

-13

May

-13

Jun-

13Ju

l-13

Aug

-13

Sep-

13O

ct-1

3

Nov

-13

Dec

-13

Jan-

14

Feb-

14M

ar-1

4

Apr

-14

May

-14

Jun-

14Ju

l-14

Aug

-14

Sep-

14O

ct-1

4

Nov

-14

Dec

-14

Jan-

15

Feb-

15M

ar-1

5

Apr

-15

May

-15

Jun-

15Ju

l-15

Aug

-15

Sep-

15O

ct-1

5

Nov

-15

Dec

-15

Jan-

16

Feb-

16M

ar-1

6

FWD / RTN Exception Volume Trends

Adjustment Volume Linear (Adjustment Volume)

Forward and Return Adjustment Volume Trend

31

Trend Comparisons – Top 6 Itypes (FWD/RTN)

32

Total Volume 2013 to 2015: PAID Exceptions : +8% ENC Exceptions: +8% NCH Exceptions: -10%

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep-

13

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Feb-

14

Mar

-14

Apr

-14

May

-14

Jun-

14

Jul-1

4

Aug

-14

Sep-

14

Oct

-14

Nov

-14

Dec

-14

Jan-

15

Feb-

15

Mar

-15

Apr

-15

May

-15

Jun-

15

Jul-1

5

Aug

-15

Sep-

15

Oct

-15

Nov

-15

Dec

-15

ENC

NCH

PAID

Trend Comparisons – Top 6 Itypes (FWD/RTN)

33

Total Volume 2013 to 2015: WIC Exceptions : -65% ERR Exceptions: -5% LC Exceptions: +18%

Common Adjustment Mistakes

Paid Involving an Encoding Error Paid case may be submitted for the amount it was presented/returned if an encoding error has not been completed. If an encoding error has been completed, the case must be

submitted for the correct item amount and the encoding error referenced in the comments.

Paid submitted twice Receiving banks submit a group Paid Adjustment and a

single item Paid adjustment for the same item.

34


PAID versus DUP PAID should be used when an item is received and

charged more than once in a cash/return letter; does not include ACH. Required information is the item presentment information.

DUP should be used when an adjustment entry is duplicated; received two debit entries for the same PAID as previously stated. The FRB reference numbers for both entries, along with other information, is required.

35


CA1000 (Case Open) versus CA5000 (Case Resolution) message The correct response to a CA1000 sent to you by the

FRB stating this is a Notice of Intent to pass entry, or similar language, is a CA5000 as opposed to a CA1000. The CA1000 should only be used when you are initiating a case.

Incorrect / Incomplete Information Provided. Wrong Sequence Number Wrong cash letter or entry date (CLED)

36

Upcoming Changes 37

Retirement of Investigation Types (ITYP) Removal of Fields

Retirement of Message Types (MTYP) Field Edits Deadline for Check Adjustments

Upcoming Changes

Retire11 I-Types Advice Request (AREQ) Enclosed Not Listed (ENL) Expedited Re-Credit (EXRC) Extra Bundle (EBDL) Extra Cash Letter (ECL) Extra Cash Letter Credit

(ECLC) Free Item (FREE) Incorrect Cash Letter Credit

(ICLC) Late Cash Letter Credit

(LCLC) List (LST) Missing Bundle (MBDL)

Removal of 3 Fields Date Credit Received (DCR) Expected Date of Credit

(EDC) Type of Advice Requested

(AVTP)

(Only used with ECLC, ICLC, LCLC and AREQ)

38

Upcoming Changes

Retire 2 CA Message Types CA4000 (Status Inquiry) CA6000 (Status Response)

Customers should use the Automated Status Report in Fed Line Adjustments to see status of cases they have not received resolution on.

Documents-to-follow (DTFs) will be Not Allowed for Encoding Error (ENC) ITYP.

39

Deadline for Check Adjustments

Current Upcoming Change

Cut-off time for FRB Atlanta

Electronic adjustment requests must be received by 6:00 p.m. ET to receive same day entry or same day acknowledgment

Electronic adjustment requests must be received by 5:00 p.m. ET to receive same day entry or same day acknowledgment

Cut-off time for all Reserve Banks, excluding FRB Atlanta

Electronic adjustment requests must be received by 3:00 p.m. local FRB time to receive same day entry or same day acknowledgment

40

Contact Information and Resources

Becky Frasier Director of Adjustments [email protected]

Check Customer Support (877) FRB-CHKS or (877) 372-2457

Case submission Requirements for PAIDs https://www.frbservices.org/files/operations/pdf/120513_check_adjustments_chan

ges.pdf

Understanding a CA1100 (case open with entry) Message for a PAID https://www.frbservices.org/files/operations/pdf/understanding_ca1100_message.

pdf

41


https://www.frbservices.org/files/operations/pdf/120513_check_adjustments_changes.pdf



https://www.frbservices.org/files/operations/pdf/understanding_ca1100_message.pdf

https://www.frbservices.org/files/operations/pdf/understanding_ca1100_message.pdf

Questions/Comments

This session is eligible for 1.2 NCP CE Credits For additional information, please contact: [email protected]

This NCPC Program document contains copyrighted materials of its publisher and the above named organizations that contributed materials to this document.

These materials may not be reproduced or published, in whole or in part, without the express permission of ECCHO

