Wrestling Payments

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Episode Summary

In this episode of "Wrestling Payments," host Joe Casali dives into the details of National Small Business Week. He emphasizes the importance of utilizing available resources, such as the SBA’s virtual summit and educational programs, to help small businesses thrive. Joe highlights key sessions on AI, cybersecurity, and marketing strategies that are crucial for business growth and stability in today’s dynamic environment.

Joe also discusses the practical aspects of running a small business, including managing cash flow and leveraging e-commerce. He underscores the significance of tools like positive pay for fraud prevention, sharing real-life examples to illustrate its benefits. His insights provide actionable advice for small business owners to navigate challenges and secure their operations.

Throughout the episode, Joe reminds listeners of the critical role small businesses play in the economy. He encourages owners to utilize community banks and credit unions for support and stresses the importance of staying informed about the latest industry trends and solutions. This episode is a valuable resource for any small business owner looking to enhance their operations and safeguard their future.

Key Insights
AI Can Drive Small Business Growth

Artificial Intelligence (AI) offers numerous benefits for small businesses, from generative AI to automation and pattern recognition. Generative AI can create content, such as business stories and marketing materials, efficiently and effectively. Automation and pattern recognition help businesses spot trends and anomalies, enhancing risk management and decision-making processes. AI's potential to streamline operations and improve accuracy makes it an invaluable tool for small businesses looking to grow and stay competitive in a rapidly changing market.

Cybersecurity is Critical for Remote Work

In the current landscape where remote work has become prevalent, securing business operations is more crucial than ever. Small businesses must prioritize cybersecurity to protect sensitive data and ensure smooth operations. This includes implementing robust security protocols and educating employees about best practices. With the increasing threats of cyber-attacks, having a strong cybersecurity framework helps businesses safeguard their assets and maintain trust with their customers and partners.

Positive Pay Prevents Fraud

Positive pay is an essential tool for small businesses to prevent fraud. It involves the business providing a list of authorized checks to their bank, which then cross-checks any checks presented for payment. This system helps detect and stop unauthorized transactions before they can cause significant financial damage. The use of positive pay can save businesses time and resources by preventing fraudulent activities, thereby maintaining the integrity of their financial operations and protecting their bottom line.

Link to Positive Pay Survey: Positive Pay Market Survey (neachgroup.com)

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Episode Summary
In this episode of "Wrestling Payments," Joseph Casali dives into the often-misunderstood realm of government benefit payments and their reclamation process. Highlighting a new course he's developed; Joe explains the crucial difference between the Nacha Rules and those dictated by government agencies when a beneficiary passes away. His insights illuminate the complex interactions between the law, the "Green Book" guidelines, and real-world banking practices, emphasizing the practical implications for those managing such funds.

Joe also introduces the concept of constructive knowledge, explaining its vital role in determining financial institution liability. Through compelling examples, he outlines how seemingly simple knowledge can trigger significant financial responsibilities, stressing the importance of being proactive and informed.

The episode wraps up with a call to action, inviting listeners to engage with the course that not only educates but also equips financial professionals with the tools to navigate these intricate scenarios effectively. Joe's approachable discussion aims to enhance understanding and help institutions limit their financial risks associated with government benefit reclamation.

Key Insights

• Government Benefit Payments Are Bound by Dual Regulatory FrameworksNavigating the realm of government benefit payments demands understanding the distinct yet overlapping rules set by federal agencies and the Treasury. While agencies may deem a person "eligible" for certain payments, financial institutions must adhere strictly to the regulations, which only recognize allow benefit payments if the recipient was alive on pay day. This discrepancy creates a complex scenario, especially in situations the deaths of beneficiaries is unknown to their financial institution, leading to significant operational challenges for banks and credit unions as they reconcile these obligations and liabilities.
• Constructive Knowledge Determines Financial Liability
• The concept of constructive knowledge plays a critical role in managing the liability associated for government payments. Financial institutions are expected to act upon any commercially reasonable information indicating a beneficiary's death, which sets their liability from that point forward. This encompasses various scenarios where knowledge can come from direct notifications like letters from nursing homes or even more informal sources like local knowledge of a death. Ignoring such information can significantly increase the institution's financial risk and legal exposure.
• Effective Training Reduces Risk in Payment Reclamations
  Proper training in handling reclamations is essential for reducing potential liabilities. Financial institutions must implement robust procedures to manage and respond to death notifications and other signals of beneficiary status changes. Through well-structured courses and tools, institutions can ensure their staff is equipped to adhere to both the legal framework and operational best practices, thereby minimizing financial losses and enhancing compliance with regulatory requirements.

31 Code of Federal Regulation Part 210
The GREEN BOOK
NEACHU - "Notified of Death, Now What?"

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Episode Summary

In this episode of Wrestling Payments, Joe Casali sits down with Charlie Kelly from Remedy Consulting. They dive into the evolving landscape of payment systems. Charlie shares insights from his vast experience, focusing on core conversions, contract negotiations, and the challenges community banks and credit unions face.

Charlie emphasizes the importance of navigating the complexities of payment system upgrades. He highlights how Remedy Consulting aids institutions in understanding their core provider's language and the broader ecosystem. This support is crucial for making informed decisions during core negotiations or considering conversions.

The conversation also explores the intricacies of connecting traditional banking systems with emerging fintech solutions. Charlie discusses the hurdles in integrating new technologies with established banking infrastructures. He stresses the balance between innovation and maintaining security and reliability in payment systems. This episode offers a glimpse into the critical role of consultancy in simplifying and guiding financial institutions through technological transitions.

Guest-at-a-Glance
Charlie Kelly
Partner at Remedy Consulting and Host of BankTalk Podcast
Remedy Consulting
Charlie Kelly brings a wealth of experience from his tenure at one of the nation's leading core providers, focusing on project management, pricing, and contracts. Now at Remedy Consulting, he specializes in helping community banks and credit unions navigate complex payment system conversions and negotiations.
LinkedIn

Key Insights
Navigating the Maze of Payment System Upgrades

Charlie Kelly discusses the intricate process involved in payment system conversions, emphasizing the common pitfalls financial institutions encounter. A significant challenge highlighted is the misalignment between digital providers and core systems, which often lack seamless integration. This disconnection can lead to costly mistakes, such as the cancellation of nearly finalized contracts due to unrecognized incompatibilities. Kelly’s expertise shines as he guides institutions through these complex negotiations, ensuring they make informed decisions that align with their technological and financial goals.

Modernizing Financial Systems: A Delicate Balance

The episode dives into the difficulties of integrating cutting-edge fintech solutions with legacy banking systems. Charlie Kelly points out the vast gap between the innovative ideas emerging from fintech startups and the reality of incorporating these into the established infrastructure of traditional banks. The biggest hurdles are the entrenched systems of larger providers, which are not easily adaptable or open to prioritizing new fintech integrations. This insight underscores the crucial role of consulting services like Remedy Consulting in facilitating this integration, ensuring that banks can innovate while maintaining the reliability and security of their payment systems.

The Crucial Link: Consultancies in Payment Innovations

Charlie highlights the essential role of consultancies in assisting community banks and credit unions with navigating the complexities of payment system upgrades and core conversions. By acting as an intermediary between these institutions and their core providers, Remedy Consulting plays a pivotal role in deciphering the jargon and technicalities of contracts. This service is invaluable for smaller institutions that might otherwise struggle to understand the full scope of their technologi

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Episode Summary
Welcome to our 25 Episode. Before we get to the official description, this was such an enjoyable episode to record and catch up with an old "Ring" veteran. What started out as a catch-up session, turned into an amazing valuable episode, check below for some resource links.

In this episode of Wrestling Payments, host Joe Casali welcomes Patty Presta, AAP, NCP, the Director of Education at NEACH. Patty shares her unique journey from aspiring to be a nurse to becoming a pivotal figure in the payments industry. Her transition highlights the unexpected paths that lead to rewarding careers in finance.

Patty and Joe discuss critical topics like elder abuse and human trafficking. They emphasize the importance of education and vigilance within financial institutions to prevent exploitation. Patty’s experiences from teaching to working on the front lines against financial crimes offer invaluable insights into the evolving challenges in payments.

The conversation also covers the evolution of payment systems, from direct deposits to modern AI and P2P technologies. Patty's return to NEACH marks a full circle, bringing her expertise back to where her journey in payments began. This episode sheds light on the ongoing fight against financial crime and the importance of continuous learning in the payments industry.

Guest-at-a-Glance
Patty Presta, AAP, NCP, Director of Education NEACH
Over 20 years in payments, passionate about elder and financial abuse education.
LinkedIn

Key Insights
The Unplanned Journey into Payments

Patty’s career path serves as a fascinating example of how life can take unexpected turns. Originally aspiring to be a nurse, Patty’s journey into the payments industry began with a temporary job that unexpectedly evolved into a significant role in education within NEACH. This story highlights the unpredictable nature of career paths and the importance of being open to new opportunities. Patty's transition from a secretary tasked with web development to becoming a pivotal figure in payments training underscores the role of adaptability and learning on the job in achieving professional success.

Addressing Elder Abuse and Human Trafficking in the Financial Sector

Patty brings to light the critical issues of elder abuse and human trafficking, underscoring the financial industry's role in combating these problems. With a deep-seated passion for protecting the vulnerable, she has dedicated a significant part of her career to educating financial institutions on recognizing and preventing financial exploitation. Patty’s work in creating awareness and training materials for detecting signs of abuse and trafficking within financial transactions reveals the power of education and vigilance in making a difference. This insight underscores the importance of the financial sector's proactive engagement in societal issues.

Links
https://polarisproject.org/
https://www.thorn.org/

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Episode Summary

In this episode of Wrestling Payments, host Joe Casali talks with Sean Carter, President & CEO at NEACH, about the significant changes in ACH rules. They dive into the recent ballots passed with over 93% approval, focusing on the new risk management framework. This framework aims to protect the payment network from fraud, a challenge all payment systems currently face. Carter emphasizes the collective effort required to combat fraud, highlighting that the changes affect not just one party but all involved in the ACH network.

The conversation then shifts to specific rule changes, particularly the ACH credit monitoring by RDFIs. This new concept asks receiving financial institutions to do more in spotting and preventing fraud, marking a departure from the traditional focus on originators and ODFIs. Examples of past fraud incidents are discussed to illustrate the potential impact of these rules in preventing future fraud. Carter points out the importance of collaboration between RDFIs, ODFIs, and originators to effectively use these rules.

Finally, Carter stresses the urgency of implementing these changes well before the 2026 deadline. He suggests that financial institutions should not wait to adapt, given the serious implications of fraud on society, including funding for trafficking, drugs, and terrorism. The discussion concludes with the importance of keeping information up to date in the NACHA registry and leveraging technology like AI to enhance fraud detection efforts.

Guest-at-a-Glance
Sean Carter
President & CEO
NEACH

Key Insights
A United Front Against ACH Fraud

Sean Carter emphasizes the importance of a collective effort in combating fraud within the ACH network. The new ACH rules, passed with overwhelming approval, reflect this approach by not singling out any one party but rather distributing the responsibility across RDFIs, ODFIs, originators, and third-party senders. This strategy acknowledges that fraud is a complex issue that no single entity can address alone. By mandating contributions from all sides, the aim is to fortify the entire payment system against fraudulent activities, demonstrating a shift towards a more inclusive and collaborative defense mechanism within the financial ecosystem.

Enhanced Role of RDFIs in Monitoring ACH Credits

The episode dives into one of the major changes in the ACH rules: the requirement for RDFIs to monitor ACH credits more closely. This significant shift tasks RDFIs with identifying and addressing potential fraud more proactively. Previously, the focus was predominantly on the originators and ODFIs. By extending this responsibility, the new rules aim to leverage the unique position of RDFIs to spot unusual activities, such as unexpected large deposits, that might indicate fraud. This change underscores a holistic approach to fraud prevention, recognizing that effective detection requires insights from all parties involved in the transaction process.

Immediate Action Required to Combat Fraud

Despite a 2026 deadline for implementing the new ACH rule changes, Sean Carter stresses the importance of starting now. He highlights the critical nature of fraud prevention, not just for the integrity of the payment system but also for societal concerns, as fraud often funds illegal activities. By encouraging financial institutions to adopt new measures promptly, Carter underscores the notion that waiting is not an option when it comes to safeguarding against fraud. This urgency is a call to action for all entities involved in ACH transactions to review and update their processes, utilize new technologies, and ensure compliance with the evolving landscape of fin