US Bank implements secure vault payments for child support group

Source: US Bank

U.S. Bank announced today the successful implementation of Secure Vault Payments (SVP) with the Nebraska Child Support Payment Center for online child support payments.

Non-custodial parents can now choose Secure Vault Payments (SVP) to make their child support payments from a consumer online bank account at U.S. Bank or at any SVP-enabled financial institution.

"Our overriding concern at the Nebraska Child Support Payment Center is to make sure children receive the financial support they need," said Nebraska State Treasurer Don Stenberg. "By providing the Secure Vault Payments option, we are offering yet another secure and convenient means for non-custodial parents to stay current with their child support obligations and to make their payments on time and in full."

Within just a few hours of implementation, Nebraska Child Support Payment Center received their first child support payment using Secure Vault Payments from an out-of-state non-custodial parent.

More than $1 million in child support payments is processed daily at the Child Support Payment Center, a division of the Nebraska State Treasurer's Office. Under federal law, payments to custodial parents must be disbursed within two business days of receipt of the child support.

"The Nebraska Child Support Payment Center is the first child support payment center in the United States to offer Secure Vault Payments," said Troy Reiners, director of the center. The option is good for the state as well as for parents paying child support because funds are verified and secured at the time of the transaction. With SVP, the state avoids problems associated with checks returned due to insufficient funds, stop-pay notices or other returns on bank accounts.

With Secure Vault Payments, a non-custodial parent initiates the payment at the Child Support Center's website. The parent is automatically redirected to his or her bank's online banking platform to select the account to use for payment. The participating financial institution authenticates the payer and immediately withdraws funds from the payer's account and then transfers funds to the Child Support Center the next business day.

SVP does not require convenience fees and allows parents to make child support payments electronically without having to share their bank routing number or bank account number with the state. To offer Secure Vault Payments as an online payment option, an organization must be sponsored into the SVP network by a SVP-enabled bank.

"U.S. Bank is committed to providing organizations with innovative solutions to increase the efficiency of their payment collection and to enhance their payers' experience," said Eric Lim, vice president and senior product manager for U.S. Bank Treasury Management. "U.S. Bank was the first top ten bank to offer SVP. We believe Secure Vault Payments provides compelling benefits as an online consumer payment option for many industries including government, higher education and nonprofit organizations."

Comments: (0)

Dorsum white paper - Building your future wealth management solution vol. 2