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Section 1: Context, Payments in Canada + the Prairie System Response
Section 2: PaaS + New Joint Venture
Section 3: Preparing My Organization
Section 4: Implementation/Resourcing/Costs
Section 5: Questions From Credit Unions
Section 6: Question Form Q+A
Section 7: Technical Questions
Section 8: Interac
Section 9: DIP
SECTION 1: CONTEXT, PAYMENTS IN CANADA + THE PRAIRIE SYSTEM RESPONSE
What are payments?
Payments are the suite of products and services access channels and supporting infrastructure that enable the transfer of value between two parties.
They represent one of the prime interaction points members have with credit unions.
What’s happening to the payments landscape?
The payments landscape is rapidly changing and there are a wide range of participants and available payment methods.
Occupants like banks, financial technology organizations (fintechs) and non-traditional players like Google and Apple have fragmented the industry and pushed participants to a new competitive level.
Regulatory requirement for payments are also evolving. Payments Canada is modernizing national payments infrastructure, processes and policies. Additionally, the Canadian government is contemplating open banking – all transforming financial services around the world.
What impact does this have on credit unions, why can’t we keep the status quo?
In response to the evolving payments landscape the three prairie centrals of Alberta Central, Credit Union Central of Manitoba, and SaskCentral in step with the seven largest credit unions in the prairie provinces completed a comprehensive analysis and identified without significant investment in modernizing payment capabilities that prairie credit unions risk:
- Not aligning to new regulatory requirements for ISO20022 industry standards for back-end system integrations with Payments Canada
- Reduced payments capabilities by not being able to access all payment types available or leading modern payments products and services available to other Canadian financial institutions
- Increased costs of maintaining separate payment platforms and supporting multiple processes – which increases our total cost of ownership above our competitors
- Lower revenue growth by separately accessing payment services and financial technologies means they may be out of reach to offer to members
- Slow response to market conditions by not being a part of a broader Canadian payment ecosystem which risks us waiting too long to provide payment products and services that our members desire.
How are the prairie centrals responding?
Prairie credit unions asked the prairie centrals to examine developments in the payments environment, both nationally and globally, and to provide a strategic path forward.
A steering committee – comprised of the CEOs of the three prairie centrals and the seven largest prairie credit unions – was created. They considered several factors to conduct an in-depth assessment that included:
- A review of Payments Canada’s modernization program.
- An analysis of the current payments solutions used by prairie credit unions.
- A review of member-facing payments user interfaces – current and future.
- The continued participation and investment in the Group Clearing Joint Venture with Central 1.
What is the Prairie Payments Initiative (PPI)?
PPI is the initiative the Prairie Payments Joint Venture Initiative (PPJV) was developed to manage.
PPI works to ensure prairies credit unions are competitive in payments by providing access to the most efficient, cost-effective, modernized payments processing infrastructure, all within the context of meeting Payments Canada modernization requirements.
For more information on PPI, please review the PPI backgrounder here.
What options came out of the steering committee’s analysis?
Several available options came out of the analysis:
- The practicality of rebuilding existing technology platforms to meet modernize standards.
- The availability and practicality of sourcing and organizing “best of breed” payments solutions to replace aging technology.
- The practicality of leveraging PaaS providers that can offer integrated, turn-key, and modernized payments services.
What option was recommended and was it approved?
The steering committee endorsed looking at PaaS from an experienced global provider. IBM was chosen to move forward. The option to move to PaaS, using IBM, was approved in late December 2019.
Why was IBM selected to modernize payments?
The boards of directors of the three prairie centrals conducted an RFI process to execute their vision of prairie credit unions being competitive in payments by providing access to the most efficient, cost-effective and modernized payments processing infrastructure.
After evaluating solutions IBM Payment Centre Canada (IPCC) was selected In December 2019 to implement a cognitive payments platform built on the IBM Cloud that combines the infrastructure, software, application and business operations support under one multi-tenanted, cost-effective and efficient platform for payments.
For more information please review the IPCC background here.
What is the IBM Payments Centre Canada (IPCC)?
IBM Payments Centre Canada (IPCC) is a cognitive payments platform built on the IBM Cloud, used by many major Canadian and US banks, combining the infrastructure, software, application and business operations support under one multi-tenanted cost- effective and efficient platform.
It is important to note that IPCC has multiple solutions within its platform such as Payments-as-a-Service (PaaS) or Safer Payments.
For more information, please review the IPCC background here.
What are the benefits of implementing the IBM Payments Centre Canada?
By adopting the IBM Payment Centre Canada, Prairie credit unions benefited by moving from the status quo by:
- Enabling Prairie credit unions to be competitive in payments by providing access to the most efficient, cost-effective modernized payments processing infrastructure. Reducing costs. Cost-effective, hosting multiple financial institutions on one platform (IBM Cloud) drives down the payment processing costs of hosting multiple platforms and supporting multiple processes, and reduces total cost of ownership.
- Negotiating an advantageous agreement with IBM that de-risks modernization and establishes opportunities for growth Gaining agility. Collaborate with other financial institutions and financial technologies within the ecosystem to quickly provide new leading payment products and services to your members.
- Enhancing the scope of payments processing within the Prairies, without increasing costs to credit unions, including a substantially enhancement of fraud detection and management capabilities.
- Contemplating and solidifying an opportunity to aggregate payments on a national scale, for the benefit of the entire system, while
- Maintaining independence and autonomy for Prairie credit unions.
- Establishing a strong foundation on which Prairie credit unions can build excellent member experiences and unleash digital innovation to give members greater flexibility in how they spend, track, and manage their money.
For more information, please review the IPCC background here.
SECTION 2: PAAS + NEW JOINT VENTURE
What is Payments-as-a-Service (PaaS) and how does it work?
PaaS delivers an end-to-end payments management and infrastructure experience delivered through the IPCC cognitive payment platform.
The PaaS operating model incorporates all payment types, including low-and high-value payments and real-time payments, with the ability to support real-time gross settlement, multiple same-day settlements and traditional settlement models.
A prairie credit union simply connects its core and digital banking systems directly to the platform using three methods:
- Your own interface
- White-label graphical user interface – provided by IPCC
- Partner organization – such as Celero or Forge
Critically, there are no restrictions to the types or versions of core and digital banking systems (if they are compatible with API connectivity).
The Platform is ISO 20022-compliant with API-enabled integration, as well as all the standard integration mechanisms with channel, back-end systems, and external parties for origination, process and exchange. The technical environment also enables integration with fin tech and other payments ecosystem partners.
Does that mean that payments services functions in each prairie central will no longer exist? What payment types are in scope for PPI?
There are some services anticipated to remain within the centrals and some to migrate over to IBM.
Payments processing outsourced to IBM will include:
- Automated fund transfer (AFT) – NAFT and CAFT will be replaced by new IBM solutions
- Bill Payments – will move from CUPS and Central 1
- Interac Payments (e.g. e-Transfers) – will move from Central 1
- Wires – wires system will be replaced by a new IBM solution
- Cheques (paper and electronic) – will move to Intria (IBM’s partner)
- Centralized Fraud detection and mitigation – new solution from IPCC called Safer Payments
- Real Time Rail – future Payments Canada initiative – provided by IBM
The Group Clearing Joint Venture structure will remain, and thus each of Alberta Central, SaskCentral, CUCM and Central 1 will continue to operate as a Group Clearer (Direct) with Payments Canada. Each central must also manage their own responsibilities as it relates to Group Clearing and Treasury.
What does outsourcing to IBM mean? Is IBM buying CUPS?
Outsourcing is a business practice where an organization hires an external company to perform tasks or provide services that were previously been done by internal departments.
In this case, what it means is that over the next 24 months, the payments processing activities listed above will transition from being conducted by CUPS employees to being provided through IBM’s PaaS platform.
Transitioning to PaaS does not mean that IBM is buying CUPS. We are in contract with IBM to outsource the current in-house services to them. This contract will be managed by the joint venture.
Will other payments services functions not mentioned above continue to be provided by the centrals?
Statement services, settlement services, drafts and money orders, cash parcels, armoured car contracts, mail room and CIO services to Credit Union Central Manitoba are not part of the outsourced arrangement at this time. However, while they are not currently areas of focus, ongoing assessments of how best to optimize these services will continue as the joint venture gains momentum. If there is an impact to these areas in the future, we will communicate these.
Will IBM ensure credit unions meet payments modernization requirements?
IBM will be obligated to ensure prairie credit unions meet Payments Canada modernization requirements (and comply with all other regulatory changes, as they happen).
What are the benefits of PaaS to credit unions?
PaaS establishes a strong foundation on which prairie credit unions can build excellent member experiences and unleash digital innovation to give members greater flexibility in how they spend, track, and manage their money.
Benefits of PaaS to credit unions include:
- Creating Certainty & Reducing Risks. Clarity and certainty around modernization costs and payments capabilities (“future-proofed”); shifts obligation to meet modernization onto a third-party service provider.
- Focusing On What Matters. Enables Prairie credit unions to focus on strategic investments rather than maintaining infrastructure; enables “re-imagining” of Central capabilities and competencies
- Enabling choice. Support all banking systems and platforms, with no customized/proprietary development – everything is based on standardized, open source principles to make future innovation more agile and accessible to credit unions.
- Empowering Credit Unions & Members. Increases self-serve options for both credit unions and members, which enables credit unions to be more responsive to evolving member needs and expectations.
- Unlocking Value. Leverages volumes to reduce in per-transaction pricing between payment types (details to come) and enables cost- efficiencies through rationalization within Centrals (and potentially within credit unions).
- Enhanced Fraud Management. The IBM Safer Payments solution is a complete step-change for fraud management, monitoring and prevention capabilities.
While this solution is primarily focused on prairie centrals, there will be continued collaboration with other centrals outside of the prairies, recognizing the benefits of a collective approach and synergies and the common need for all centrals to evolve their operating models to allow for payments success of the entire credit union system.
Who will manage the contract with IBM, PaaS contract? Who are the key contacts I should be aware of?
The prairie central CEOs will administer the IBM contract in a new three-way joint venture structure overseen by each prairie central called Prairie Payments Joint Venture Initiative (PPJV).
The PaaS Management Board will oversee the PaaS IBM contract, as well as influence innovation and product development. Immediate priorities for this board will be to define principles and processes, understand system considerations as well as identify the board’s mandate and scope of work.
For more information on PPI key roles, please review meet the team here.
Are the three prairie centrals merging to form this new joint venture?
The three prairie centrals are not merging but have recognized the advantages of streamlining payments functions between the centrals within the context of PaaS.
What is the joint venture implementing PaaS called?
Prairie Payments Initiative (PPI) is the initiative the Prairie Payments Joint Venture Initiative (PPJV) was developed to manage and is implementing Payments as a Service through the IBM Payments Centre Canada.
Will there be a program management team created to help navigate this transition? What are the workstreams that make up the PPI initiative?
Yes, the PaaS Implementation Program Management Office will be created immediately and will report into the PPJV.
The main goal of this team will be to effectively manage and execute the transition to PaaS while maintaining existing relationships with credit unions and other partners.
For more information on the PPI workstream breakdown, please review the workstream summary here.
Does the new joint venture come into effect immediately and who leads it?
The joint venture is now in effect and interim management of PPJV falls under the PPJV Transition Management Board who have appointed Caroline Ziober, Chief Member Experience Officer, Servus Credit Union, to assume the role of Transition Leader.
Do regulators have to approve this joint venture?
Regulatory approval is not required to move to PaaS, however the prairie centrals will continue to adhere to payments related regulatory requirements.
SECTION 3: PREPARING MY ORGANIZATION
When will we hear about project timelines?
Project timelines are continually evolving to meet the needs of each credit union. As project plans are developed, PPI will be in touch with your credit union to provide regular updates on project timelines.
Please review the most recent timeline here.
The Biweekly Broadcast project updates also contain information and context about impacts to project schedules with the most recent located here.
How long will the transition to PaaS take?
Who will be responsible for the build and roll-out of the actual PaaS platform?
IBM will be responsible for the technical roll-out. They have the experts who will work with the JV and credit union leads and subject matter experts to ensure a timely and efficient roll-out of the PaaS platform for credit unions.
Note, credit unions are responsible to ensure their own internal business readiness to ensure your people and processes are aligned to use PaaS.
How will credit unions be supported through the transition?
IBM and the program management office (once developed) will help ensure the technology onboarding, which will likely consist of several phases for credit unions, will be efficient and thorough.
Credit unions are responsible for their own specific transition plans and training.
Will PPI provide change management and training to prepare my organization?
Each prairie credit union is responsible to prepare its people to use new payment processes and systems by understanding impacts to your credit unions internal business process and systems.
PPI recommends that you create a change management plan that outlines how your organization adopts and become proficient with your future payment solutions.
You can find Business Readiness materials, including an Organizational Change Management (OCM) playbook, here.
How many of our staff will be needed on the project, I’ve heard this implementation is a heavy load on each organization?
Payment modernizations such as PPI will require additional effort from impacted staff beyond your typical operational needs that are unique to each credit union’s needs.
As you prepare your project plan, PPI recommends you assess your credit unions capacity for change to ensure there is adequate time for your people to prepare, deploy and sustain your payments solutions.
What are the impacts to my organization from PPI’s in scope payment types?
Payment types in-scope for PPI include automated fund transfers (AFTs), wires, bill payment, Interac and cheque.
Specific impacts to your credit unions business processes and technology will need to be diagnosed as part of your deployment plan.
What will be the impact to the prairie centrals’ employees?
As noted, immediate next steps are to create a transition team, develop the transition plan, the new Prairie Payments Joint Venture, and have discussions with CUPS and CUCM on out-of-scope services. Once this work is completed, we should have a clearer picture on staffing requirements. We are committed to providing employees with transparent and open communication on both the progress of the initiative and the impact on resourcing as information becomes available.
Will severance packages be offered?
Common guiding principles including severance and transition arrangement practices will be created among the centrals. These will guide the development of severance packages to ensure any affected employees regardless of location, are treated fairly and equitably through this process.
Are all the centrals sharing the same information?
The centrals have been working very closely throughout this process to understand each other’s requirements and provide a common approach for communicating to their boards, credit unions, and employees. Employees in each central will also have access to the website which provides up to date information on the initiative.
As a central employee, what should I do in the meantime?
We still have an existing business to run, and it will take time to develop the transition plan. We must continue to provide the same excellent service our members expect from us and continued focus on daily activities and planned projects is paramount.
It’s possible that depending on your role, the changes could affect your daily work during the transition period. We know these changes create uncertainty and may be uncomfortable for employees.
We are committed to communicating with employees and hearing from employees to ensure they are well-informed about the transition work in an open, respectful and timely manner.
How should I prepare for this change?
We recognize that change can be distracting and creates uncertainty for everyone. We hope that as we progress, ongoing, open, and honest communication will empower employees to seek information and ask the questions they need to help them through this transition. Your immediate leader and the People & Culture/Human Resources department are also always available and willing to help you with any concerns you may have.
SECTION 4: IMPLEMENTATION/RESOURCING/COSTS
What has been accomplished since the contract has been signed?
Please review the Biweekly Broadcast project updates for the most recent information located here.
What are the project timelines?
Project timelines are continually evolving to meet the needs of each credit union. As project plans are developed, PPI will be in touch with your credit union to provide regular updates on project timelines.
Please review the most recent payments modernization multi-year roadmap located here.
Biweekly Broadcast project updates also contain information and context about impacts to project schedules with the most recent located here.
What is the impact to members / Will our members be impacted by PPI?
It is business as usual and so the impact to members from a day-to-day perspective should be minimal or even beneficial. Members should be receiving the same excellent customer service they have come to expect.
As your credit union prepares to connect your digital and core banking platform we recommend that you review the specific benefits you anticipate to to ensure you can make members aware of any improvements in the service!
For example, there will be some excellent new payment features (such as an improved CAFT system) and we will work with all CUs to ensure both they and their members understand how these new services work prior to any roll-outs.
What are the associated costs, how much will it cost to deploy PPI, where can I find more information on pricing?
Currently all the Prairie Credit Unions are billed either by CUPS or CUCM payments for all or a majority of their payments business. This process will continue but migrate to billings under the new JV.
Will my credit union need to hire another resource to support this implementation?
IBM – as part of their business readiness approach – will work with each credit union to understand what resources they have and if more are required to support their transition to the IBM platform. Those credit unions supported by Celero will be jointly supported by Celero and PPI resources for their transitions, however, we expect the impact to Celero hosted credit unions will be minimal.
Note, credit unions are responsible to ensure their own internal business readiness to ensure your people and processes are aligned to use PaaS.
There are many moving parts to this major transition. How do we stay coordinated with so many credit unions involved?
The PPI has a very robust organizational structure in place that will manage the implementation of PaaS. This structure consists of several work streams:
- PaaS Transition Management Board: responsible for overall program governance and program-critical decision-making
- Transition Program Management Office: responsible for overall work stream coordination
- Partner Teams (IBM): the CU Onboarding Team, which works closely with CUs to manage their transition to the PaaS platform and the PaaS Build team responsible for the technical build). These work streams will work closely together to ensure efficient coordination on program timelines, deliverables, and stakeholder engagement.
From an engagement perspective, the CU Onboarding Team is developing a more detailed stakeholder engagement and change management strategy. The CU Onboarding team will work to keep all credit unions engaged and informed throughout the journey as we move through the various steps in the transition to PaaS.
For more information on the PPI workstream breakdown, please review the backgrounder here.
For more information on key roles on PPI, please review meet the team here.
How open is IBM to adjusting milestones or contractual timelines given COVID-19?
To adjust to COVID-19 impacts, the project team has evaluated all timelines and milestones. From an internal project perspective, no drastic changes are required and the team will continue to work towards existing milestones.
That being said, from a credit union perspective, the needs of each credit union as they relate to how COVID-19 is impacting them and whether this causes any changes to their timelines, resourcing, availability, etc. is being considered. This is the priority. If the needs of the CUs ultimately require changes to milestones, this will be evaluated and adjusted as needed.
Have the members of the PaaS Transition Management Board been decided?
The PaaS Transition Management Board has officially been formed. Members include: Sean Lesy (Alberta Central), Garth Manness (Credit Union Central Manitoba (CUCM)), Caroline Ziober (Servus Credit Union), Eric Dillon (Conexus), and Kevin Sitka (Assiniboine).
This group will report to the Prairie Payments Joint Venture (PPJV) and will govern the PPI Project during the implementation of PaaS. The board will have a mandate focused on innovation, pricing strategy, participation in PaaS, and product development. It will act as a mechanism to provide oversight over the PaaS contract and will develop innovation opportunities benefiting the system as a whole. This board will also evaluate tax implications related to the supporting governance structures and the evolution thereof.
SECTION 5: QUESTIONS FROM CREDIT UNIONS
Webinar + Point of Contact Network
SECTION 6: QUESTION FORM Q+A
In respect to CAFT or its replacement; will pre-settlement be required? Will members need to have funds on deposit three business days in advance or will it move to real time payment? If it moves towards real time payment, when will this be available?
AFT will be able to be processed either pre-settled or real time payment. Both options will be available with the implementation of the solution, with the access to real time payment being dependent on your payment platform integration being enabled for the function.
What will be needed out of our core banking system, as we anticipate letting them know in a timely manner of the scope of work?
The PPI Project Team has revised its approach to support revised program timelines and address challenges and risks. As a result, credit union onboarding has shifted away from an individualized, pilot-based transition, to a broader cut-over implementation approach utilizing the Digital Integration Pattern (DIP).
As such, the requirements for credit union interaction have changed. Credit unions will require less individualized attention, process mapping, business development and change management advisory (in the short term) however, credit unions will continue to receive ongoing two-way communication and engagement to keep informed of project progress, ensure alignment and readiness, and provide an avenue for getting questions answered.
The Credit Union Engagement Team will act as the key point of contact for all credit union needs with the subject matter expertise of our product leads for each payment type.
In addition, we have brought on a new PPJV Credit Union Engagement Lead. Wanda Harrick, who has spent her career in the credit union system leading stakeholder relations for a variety of product and system rollouts, will be the new point of contact for anything related to PaaS implementation. Please feel free to reach out to her with any questions you may have at firstname.lastname@example.org.
I would like to receive the invitation to the biweekly broadcast/zoom meetings. Tried clicking on the link in the banner for receiving updates in my mailbox but nothing happened.
Registration for the PPI portal will get anyone added to the Biweekly Broadcast e-newsletter automatically, which includes emails sharing the dates and times of quarterly PPI Webinars over Zoom. If you have registered for the PPI portal you will receive the Biweekly Broadcast and the Webinar details. If you are not receiving these updates or to unsubscribe at any time, email email@example.com.
Do you have a copy of the PPI 101 presentation in PPT instead of PDF?
Yes, here it is.
The FAQ note – Member Direct (MD) cannot currently support e-Transfer 3.5 messaging – The logical conclusion is that if we are on MD as of June 2021 we will not be able to convert to PaaS operating model and e-Transfer 3.5. Could you provide some insight on this? Thanks.
Interac has finalized their Development API 3.5 and expect all financial institutions who are participants to be compliant on Interac 3.5 by June 2021. This is so that they can take advantage of the new features including: enhanced fraud management, transaction scoring, Interac request to pay and Interac e-Transfer for Business.
The PPI program has been industry leading in integration, with the newest standards in payments to ensure the latest features and benefits are available to our members. We do not have the roadmap for Member Direct nor its plans to stay current with the industry standards.
I seem to be getting all the emails about PPI Updates, but don’t seem to be getting the invites to the webinars. Did I set something up incorrrectly when I signed up?? Can you please help me get notifications about the webinars?
Dial-in and link information for each webinar will be added to the site and circulated via email to all site subscribers at minimum one week in advance of the webinar. This information can also be found on the PPI site.
For credit unions that have alternate core banking systems other than Celero, there is a key deadline date of Feb 5/21 fast approaching to have all development requirements identified for next fall releases, to the core banking system provider (CGI). Will and or when will these Core Banking providers be contacted to ensure a smooth transition to the PaaS Platform is achievable?
CGI and PPI have initiated discussions surrounding integration requirements for CGI RFS360 clients. CGI has confirmed that they will have all development requirements identified by February to ensure that a smooth transition to the PaaS platform is achievable.
I had seen on the FAQ that the credit unions are being billed either by CUPS or CUCM so does that mean that we as a do not have any direct costs at all to deploy PPI is that correct? Would we be billed after from CUPS/CUCM?
Every credit union has a choice about how they connect to the PaaS platform. PPJV specifically is working on enabling a connection for credit unions called “DIP” that is digital platform and banking system agnostic. Credit unions are encouraged to connect with their digital and core banking providers about PaaS connection options as soon as possible. These connection costs are not included in the PaaS offering currently and so should be considered additional.
Will CORS reporting (i.e. e-Transfer CORS reporting) that is currently in place continue to be provided after integration?
CORS reporting will remain in place after integration to the PPJV platform.
Current structure under Central 1 for e-Transfer fraud is that Interac communicates with Central 1. Central 1 has a Fraud Alert System whereby they will indicate the fraudulent transaction on the system and email the credit union/Concentra. Credit Union/Concentra would investigate and advise if transaction is legitimate or should be denied. Will there be a similar service provided under this initiative for credit unions/Concentra?
PPJV is deploying a similar service to that which Concentra receives from Central 1 and their Fraud Alert System. PPJJ is leveraging Interac’s fraud detection system and is currently creating a similar process whereby Concentra will receive email alerts regarding suspicious transactions to be validated by the credit union and member.
Central 1 provides an excessive e-Transfer report that indicates if a particular account has over a minimum number of transactions in a particular day. Will this type of reporting also be provided or if I am receiving this from Central 1 today will I continue to receive this reporting after the transition?
We are not currently building additional reporting for excessive transactions. PPJV has transaction rules in place that restrict transaction volumes and frequencies to prevent excessive or fraudulent transactions.
Where can I find more information on the PPJV transaction rules that will be in place that restrict transaction volumes and frequencies to prevent excessive or fraudulent transactions?
|PPJV will be using the Interac controls that allow our system to set limits (Interac Limit Groups) on daily, weekly and monthly transactions. Members attempting to send transactions outside these parameters will be declined. These are rules that Interac sets based on transaction velocity/amounts on a rolling daily/weekly/monthly basis.|
By default, credit unions offering Interac e-Transfer services use the default limits set at Interac. With the optional limit group functionality, a credit union can choose 2 of 12 groups with different values for outgoing and incoming e-Transfer transactions as well as additional features like Instant Transfer or Probationary Limits. By participating in a limit group of your choice, all limits and features of the selected group are used for e-Transfers originating from your institution.
Where may I be able to access controls or rules written on the other payment rails (i.e. RDO, bill payments, wires, AFT, etc.) that we may be able to review in order to assess the rules/controls within PPJV and how it may impact or compliment our internal fraud processes?
As the payment streams are still currently under development, it is too early to share all information on controls/rules/finalized policies and procedures for the payment rails.
AFT will support setting up each originator with transaction, daily and monthly limits. These will be based on value date plus serviceability code and handled within the AFT engine. These are limits designed to reduce settlement risk, i.e. ensuring the funds required are available.
In terms of fraud controls, these will be handled through the integration with Safer Payments for AFTs and with employing stronger security measures to the WLG itself through the mandated two factor authentication.
Where do I find the costs of payments under this initiative?
|PPJV pricing has not been finalized at this time. Credit unions will be charged based on current pricing/volumes with no increase scheduled for 2021. However, payments fees may be adjusted at a later date at the discretion of the PPJV board (responsible for pricing oversight) because of marketplace factors including competitive or technical requirements to do so. A minimum one-month notice to credit unions will be provided in the event a change in fees is required.|
The PPJV anticipates 2022 pricing to be presented to credit unions in Q4 2021.
Can you let me know if we believe Telus will offer Canadian Carbon Tax as a payee option? This is one (like Canadian Border Services) that comes up frequently as gaps in our current offering.
The list of TELUS Tax Payment available tax types exclusively for Commercial Members is attached here. Please note:
- Many CRA tax types are included for personal and commercial members in the regular Bill Pay database.
- TELUS continues to add tax authorities to the database regularly. At present there are over 70 tax federal and provincial tax authorities to date.
When e-Transfer for Business is implemented, will the $25,000 transaction limit for incoming transfers be the only limit and the daily, weekly and 30 day limits will no longer apply? Will we still have daily, weekly, etc. rolling limits for sending transfers?
|Yes that is correct. With e-Transfer for Business, Interac will be eliminating the rolling and cumulative limits on received transactions. That said, Interac is still finalizing the limit approach so they may introduce other safeguards.|
SECTION 7: TECHNICAL QUESTIONS
General Technical Questions
White Label Graphical User Interface (GUI)
SECTION 8: INTERAC
How will credit unions get onboarded?
It depends on the platforms. There are three different scenarios credit unions may fall under:
Scenario 1: DNA Credit Unions – Using Celero Xchange™ and Celero Xpress™
For those credit unions utilizing Celero Xpress as your digital banking platform and Celero’s DNA core banking platform, PPJV and Celero have completed the connectivity required between Celero’s systems and the PaaS platform. The required integration capabilities are ready through Celero Xchange digital ecosystem integration platform, enabling your credit union to adopt e-Transfer as soon as your credit union implements Celero Xpress in production. Please reach out to Valarie Geib – Valarie.firstname.lastname@example.org to discuss your readiness plan.
Scenario 2: DNA Credit Union – Using Celero Xchange and another Digital Banking Platform of Choice
For those credit unions using Celero’s DNA core banking platform and another digital banking platform of choice (e.g. Forge, eBankIT, VeriPark), Celero will play a critical role in establishing the connectivity between the DNA core banking platform and your digital banking platform provider using the Celero Xchange. Credit unions in this scenario should engage your digital provider and your Celero account executive to establish the next steps towards integration with the PaaS platform.
Scenario 3: Other Core Banking Platforms and Digital Banking Platforms For those credit unions using other core banking and digital banking providers, you can still leverage the e-Transfer through PaaS. To do this, both your digital banking provider and your core banking provider can integrate to the PaaS platform using the DIP. Please engage in these readiness discussions with your providers so the PPJV can begin to support the onboarding of your credit union to Interac 3.5.
How will PPI help credit unions onboard?
The PPI Project team is developing an e-Transfer onboarding toolkit for credit unions. This toolkit includes information relating to: what you need to know to get started, readiness checklists, how PPI will support you, and guidelines for communications to members.
Will staff training be provided?
Yes, training will be available, but the source depends on the integration pattern / platform. For example, Celero is the trainer for Celero Xchange.
Will the member see anything different after transferring over?
The functionality will remain unchanged for all channels. However, the member transaction journey will be dependent on the digital banking platform.
Does every credit union cut over at the same time for e-Transfer?
For e-Transfer, cutover is dependent upon credit unions connectivity being in place. This is accomplished by credit unions working with their digital and core banking platform providers to complete integration to the IPCC solution.
Is there an interim state as it relates to credit union impact?
PPI is targeting to provide agnostic digital channel support. Therefore, there is no planned interim state.
What should the focus be for credit unions?
The biggest challenge for PPI is ensuring credit union readiness for connectivity. Credit unions can support by focusing on their digital channel readiness and enablement.
What are the plans for bulk e-Transfer?
Bulk e-Transfer is not in the current build set. This decision was made because this is not something the system currently uses. PPI will look to include this service in the future pending credit union demand.
Will history be available?
History will be available going forward as new transactions are made, however, historical cutover records / data will not be copied over.
What sort of data migration process is in place with Interac?
Member emails, mobile, alias information, auto deposit registration, and recipient lists are all being copied over into the new environment. This means there is no reregistration process required.
What fraud management is in place for Interac?
The target state includes PPI staffed fraud investigations and a policy desk, as well as enhanced fraud scoring. PPI is also setting up an IBM back-office and ticketing system, which will also support all payment types.
Interac itself has a robust fraud management system. Its fraud monitoring is consortium based, meaning all financial institutions that use e-Transfer feed back fraud information which helps in real time decisioning.
SECTION 9: DIP
What part of DIP is open sourced (e.g., is it just the code or entirely built of open-sourced components)? Is there any proprietary software?
The code IBM is developing is owned by PPI, and therefore is PPI’s intellectual capital. DIP itself is comprised of both open source and proprietary components.
Will IPCC’s helpdesk have the ability to investigate the flow of messages through DIP for troubleshooting? If there is a payment message that hasn’t arrived, whose responsibility is it?
The ability for IBM and credit unions to see the transaction flow exists; however, further discussions are required to define this process. The degree of accessibility for credit unions to have their individual message queues will be determined when PPI works with credit unions to define the operational model.
What parts of DIP do credit unions have access to? Is the API surface that mimics IPCC part of DIP or is that separate from DIP?
That DIP API Platform (running within the IBM Kubernetes Service / IKS) that includes Payment Mediation, Batch Posting, and Kafka is part of DIP. The API surface that mirrors a direct IPCC connection is included as part of DIP.
Is DIP designed so that there is only one logical instance of DIP, but contains services that may be specific to an individual credit union?
The inbound event does determine the route of the transaction through the system, and topics are used as targets to determine what piece of code executes, but you still have to write the code that is specific to the credit union. The event determines the route of the transaction through the system.
Is there potential to decouple errors / retries in terms of how DIP talks to the Core Banking System, so it can intelligently decide whether to retry?
Yes, that is possible; however, a key objective of DIP is to ease the integration burden and put it more in the “middle” by leveraging the power of the cloud. DIP will include a few core patterns to leverage across credit unions, but the objective of DIP is to reduce the amount of code and reliance on making changes to the core banking systems.
DIP SLA was 99% within 1 second, is that per direction?
This is per “zipping” through DIP in terms of the request response. This is not taking into account the time it spends in the Core Banking System, as this is not something DIP can control. Note, Interac just published new standards last week, and now has a 10-second response time on send and receive money (previously it was 20 seconds).
What is the advantage of DIP vs going native API?
Built with open technologies, DIP enables credit unions to control data and their destiny, reduce dependency on proprietary tools and technologies, and serve data in real-time to the processes and experiences that will define credit unions’ futures. These are key features that will enable credit unions to:
Adopt a common data model, allowing for integration inside and outside the credit union (minimizing coding, language requirements, etc.).
And lastly, empower credit unions to take back control with a platform that they own.
Is DIP required to maintain existing settlement procedures?
|Settlement will continue as expected at this time, as well as the reports still available through OAS.|
What expectation is there of the core banking system and credit union to prepare for DIP?
The DIP team will work with credit unions directly to determine the appropriate path for a given integration.
Is the 30 transactions per second (tps) for the entire system or per credit union connection?
It is for the entire system.
How does the overall architecture account for Interac e-Transfer for Business (formerly Interac Instant) transaction response time without incurring timeouts, considering the overhead for message translation and communication with the banking systems, Interac, Central 1?
It is a distributed system, and therefore, each piece of the system requires a budgeted response time in the overall transaction. Therefore, there is a small time budgeted for DIP.
For more information on Interac e-Transfer for Business (formerly Interac Instant) review the backgrounder here.
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