The ACH Network and the Future of Payments September 2019 Utility Payments Conference Danita T. Tyrrell AAP, APRP Director, ACH Network Rules

The ACH Network is Thriving https://www.youtube.com/watch?v=1HmjiGGJ3lk

Commonly Used U.S. Faster Payments Solutions Nacha Same Day ACH The Clearing House RTP© network Early Warning Zelle© Mastercard MoneysendTM SHAZAM Network ExcheQ Visa Direct New entrant: FedNow 24x7x365 Real time settlement support Target date: 2023-2024

Enhancements Are Coming to Expand the Capabilities of Same Day ACH SOONER Beginning Sept. 20, 2019, the availability of funds for many Same Day ACH and other ACH credits will occur sooner in the day HIGHER Beginning March 20, 2020, the per-transaction dollar limit for Same Day ACH will increase to $100,000 LATER Beginning March 19, 2021, access will be extended by enabling Same Day ACH transactions to be submitted to the ACH Network two hours later every business day

Providing Faster Funds Availability Funds availability times for ACH credits, by RDFI receipt time 1 - RDFIs in the Atlantic Time Zone may use Eastern Time as local time for the 1:30 p.m. and 5:00 p.m. requirements 2 - End-of-processing day will be the same standard as with Same Day ACH’s original Phases 1 and 2

Expanding Access to Same Day ACH Effective Date for third window: March 19, 2021

Faster Payments 101 Foundational concepts on faster payments At-a-glance solution comparison Resources for more information First step in education process https://www.nacha.org/resources/faster -payments-101

Faster Payments Playbook Educational and decision making platform to help entities develop a faster payments strategy Will coach organizations on: Need for a strategy Developing a strategy Opportunity costs of not developing a strategy Implementing a chosen strategy Operational and post-implementation challenges Under development by the Payments Innovation Alliance’s Faster Payments Project Team

APIs (Application Programming Interface) What is an API? Set of programming instructions that lets one software application ask another to perform a task or series of tasks Always on and communicating real time Enables direct & real-time communication between back-office systems Corporate-to-bank Bank-to-cloud ERP Three types of APIs Public Partner Private

Afinis Resulted from merger of Nacha’s Payments Innovation Alliance’s API Standardization Industry Group and the IFX Forum, an international standards organization Mission Afinis is a member-led organization established on behalf of the financial services industry by NACHA. NACHA unites diverse stakeholders to develop rules and standards that foster compatibility and integration across the financial services ecosystem. Afinis members share a single vision: to improve and support efficiency, safety, and interoperability for all financial services participants by developing and promoting adoption of implementable and open API and financial services messaging standards. Strengthen and accelerate development of standardized APIs in support of the U.S. and global financial services industry

Afinis Developer portal and sandbox where developers can Register to access Afinis APIs Discover and explore documentation Upload Apps for Afinis sandbox testing Learn and collaborate with other developers Focus on business payments and treasury services

Afinis Released API standards Get Transaction Status Allows an Originator to check status of a submitted payment instruction Initiate ACH Payment Allows businesses to submit payment instructions without having to work across multiple systems

Afinis API use cases for future development Real-time Billing Account Number Verification Get Corporate Transaction History & Get Corporate Account Balance Expand Bank Contact To Support Possible Rule Request for Payment Account Validation for Tax Credits

Nacha Corporate Experience Demonstrates how businesses can leverage Afinis APIs to more effectively exchange payments and information Shows how to simplify the pre-payment and post-payment processes Fast, simple and standard end-to-end transactional experience

Nacha Elevation Consulting Expert services for organizations that need help understanding how payments can best work for them Customized payment strategy development and implementation ACH Education Custom Onsite Training

QUESTIONS? THANK YOU! Danita Tyrrell, AAP, APRP Director, ACH Network Rules dtyrrell@nacha.org THANK YOU!