Removing False Suspects From Duplicate Detection
Aug 11th
Here’s an excerpt from the new CONIX Systems white paper: Removing False Suspects From Duplicate Detection Line-up
“The word is out that duplicate payments are gumming up payments processing for bank operations and third party providers. Partly an ‘unintended consequence’ of check image exchange replacing check processing, and partly due to game changing electronic payments technology, duplicate payments have been proven to add appreciable new costs and risk exposure – including cross-channel payments fraud. Even though the problem of duplicates has been understood and documented for half a dozen years, many banks have postponed their strategic response in a ‘wait and see’ mode as the impact of new payment options came into clearer focus.
“Among the most worrisome concerns for banks when automating duplicate detection is the time-consuming hassle of manually filtering out ‘false suspects’ or ‘false positives.’ That’s understandable since ‘false suspects’ frequently occur as the result of a return item being subsequently represented as a payment. When an item is represented and is mistaken for a duplicate payment, sorting it out can be time consuming, and failing to identify it creates a customer relations issue – a reputational hazard that banks can ill-afford.
“Now banks can implement a powerful Day 1 automated duplicate detection solution without concern for the problem of false positives with Dupe Detective. Dupe Detective provides both an outgoing returns interface and the X9 Inspector feature for identification and resolution of represented items.”
Please download the white paper for the rest of the story . . .
Duplicate Detection Helps Banks’ Reputation
May 23rd
In a world where banks’ reputations matter more than ever, we note that CONIX’s Dupe Detective™ (DD) is on the job at 30 percent of the top 10 banks as ranked by reputation in the May 23 issue of American Banker http://bit.ly/ln7Xhm .
What does using a payments processing duplicate detection system have to do with a bank’s reputation? Quite a bit, it turns out. Recently, we had a chance to “listen in” as several of our DD clients talked with the banking media about their experiences. They explained why finding a duplicate detection solution had been a strategic decision in the wake of Check 21 and the advent of paperless payment formats.
Each of them underscored the absolute criticality of protecting their account holders from the unintended risks of superior image-based payments alternatives.
No bank wants to withhold convenient, productivity-increasing payments options from their customers, nor do they want to expose their customers to the massive inconveniences created when duplicate payments post to their accounts. That’s why a Day 1 solution like Dupe Detective is best. Even when banks adjust the error (and carry the cost for adjusting it), if the account holder is aware of it, the bank’s credibility takes a hit.
Credibility suffers when duplicates hit customer accounts not because the customer takes a loss, but because by failing to catch a mistake, the bank demonstrates its vulnerability to systemic malfunction, human error, and, possibly fraud.
CONIX Systems, Inc. (CSI)’s Dupe Detective™ has become the de facto industry standard duplicate detection solution for banks and payments processors – and certainly the leading system for banks that care about their reputations.
Mobile Deposit Just Another Payment Channel
Mar 25th
CONIX Systems was an exhibitor at last week’s BAI Payments Connect conference, and overwhelmingly, the buzz was all about the future of mobile payments. Certainly, this is something that should be top of mind for banks, but we are still trying to wrap our heads around how banks plan to manage duplicates and fraud for mobile deposits, the adoption of which most of the industry seems to accepts as a foregone conclusion.
Remote deposit capture, whether it means branch capture or merchant capture – is still relatively new in terms of widespread industry adoption, and banks that have yet to get a handle on processing payments from these channels are not going to find the mobile deposit road any easier, or more difficult, for that matter, to navigate. That is counter intuitive to most people who are wrestling with the topic in the media and the boardroom.
The issue with mobile RDC isn’t with being mobile – it’s with the democratization of RDC. In a central environment, item imaging is nearly a no-brainer. When extended to branch operations, new elements of risk are added; when extended to merchants, the risks grow further. Now imagine making RDC available to individual account holders with the required devices (we just love the commercial where a happy couple lolls about with their “mobile device” taking pictures (capturing images) of a check). User error and fraud are already creating more duplicates than banks can manage with their legacy systems. Engaging the public for this activity through a mobile device only increases that likelihood.
That’s why banks that are serious about RDC and realistic about mobile deposit capture are using, or seriously considering, CONIX Dupe Detective.
Government’s Need to Stem Improper Payments Mirrors Banking Industry’s Need for Same
Jul 23rd
Improper payments have been a worsening hemorrhage for the Federal government for longer than a decade. Passage of the Improper Payment Information Act of 2002 was an early signal that the costs were headed even higher. Targeting a $110 billion source of government waste makes sense. Signed into effect by President Obama yesterday the Improper Payments Elimination and Recovery Act targets deficit reduction by ending wasteful spending resulting from payments made in the wrong amount, to the wrong person, or for the wrong reason.
It is equally important that banks and payment processors look at the costs and risks created by the financial system’s own “improper payments” dilemma presented by the marked increase in exception items within the payment stream. By this, I mean that there has been a notable increase in the level of fraud and systemic error in the payment processing environment as a whole. We talk about it all the time with our customers. Our primary focus as a company is to identify and resolve these issues. (CONIX issued a news release expressing its position on improper payments yesterday, read the release at http://www.conixsystems.com/News/pr_InappropriatePaymentsr.asp.
Why Banks Must Find Dupes Sooner
Jul 14th
CONIX Systems President of Technology, Frank Stokes, was invited to submit an article to Digital Transactions for its July issue emphasizing the need for earlier detection of duplicate payments in order to minimize the risks to banks and their customers. Read the complete article at our website.
Banks should be prepared for increased duplicates and fraud occurrences related to expansion of mobile banking.
Jul 8th
“The urgent need for banks to accelerate duplicates and other exception item payment types is highlighted now that Top 10 bank JP Morgan Chase has publicized its remote mobile capture iPhone application. As reported by American Banker today, this will ‘help propel mobile banking from a niche to a mainstream product,’ – a concern CONIX has expressed both in American Banker in May and in Digital Transactions in July. Make no mistake, mobile deposit will be a very popular business and consumer accountholder convenience tool that will create a tsunami of duplicates and opportunities to perpetrate fraud.”
CONIX-DSS to provide integrated Day 0/1 exception processing solution.
Jun 29th
CONIX and Data Support Systems (DSS) have partnered to provide an integrated Day 0/1 exception processing solution to the banking industry http://conix.com/News/pr_DSS.asp. The solution steering committee formed early this year and consisting of representatives from 4 different banks and 1 major outsourcer is providing guidance on the direction of the solution. With CONIX’s Day 1 payments and exception processing experience and DSS’s command of the Day 2 exception processing arena, the partnership will expedite the availability of an end-to-end/”total” solution.
Same-day ACH service FedACH
Jun 28th
The Fed will begin providing same-day ACH settlement for consumer checks converted to ACH and online- or phone-initiated consumer debit transfers starting Aug. 2nd. The duplicate payments between ACH and Check can and will likely appear before a bank can blink its eyes. A cross-channel Day 1 exception processing solution is an imperative in a same-day ACH environment. Maybe a bit of an increase in duplicates and other exceptions, but a definite issue on the timing. Originating banks will enjoy faster settlement of converted payments while the receiving banks will be under the gun to identify exceptions due to early cut-off times. For details on the Fed’s plans: http://www.federalreserve.gov/newsevents/press/other/other20100621a1.pdf
Frank Stokes of CONIX featured in American Banker
Jun 7th
Frank Stokes, CONIX Systems’ President of Technology, was recently featured in American Banker’s Viewpoint to discuss the risk management of remote deposit capture and image exchange. Stokes discusses the need for earlier identification and resolution of exceptions.
BAI Webinar on Acceleration of Exception Processing
Jun 7th
CONIX is working together with BAI to provide an open forum for discussing the acceleration of Day 2 exception processes into Day 1. Speakers will include Carl Bortol (DSS), Paul Carrubba (ARLAW), Tim Dillow (BB&T), and Cyndi Rhodes (Symcor). Please join us on June 8th 1:00-2:00 CT. Register here - http://www.bai.org/events/webinars/details.aspx?ec=0165&et=webinars
