VECTORsgi, a leading provider of banking transaction applications, today announced the availability of VECTOR:Resolve-RegE, its new solution to address many types of disputed electronic financial transactions.
The solution gets its name from the Federal Reserve Bank (FRB) regulation that governs certain electronic payments called Regulation E, which are regulated under rigid rules and must be resolved within a specific time frame. If the disputes are not settled in a timely manner the bank incurs the loss. VECTOR:Resolve-RegE will help financial institutions adhere to those guidelines as well as internal policies and procedures.
Resolve-RegE will address the resolution of ATM and Debit/Check Card disputed transactions, covering more than 20 different claim types, including those originating from bank's proprietary ATMs, national and regional ATM networks, POS debit card claims and ACH unauthorized and revoked claims. The widespread use of electronic transaction methods has drastically increased payment disputes, and banks are hard pressed to track and monitor the claims before the mandated deadline for chargebacks, re-presentments and requesting sales drafts. Difficulty in managing that workload is a key contributor to incurring losses, which cost the banking industry millions of dollars annually.
"Statistics show that customers are increasingly using electronic payment methods and the influx has overwhelmed many in the banking industry," said Sydney Smith Hicks, president and CEO of VECTORsgi. "We have established considerable expertise with providing solutions designed to handle paper, and this new solution leverages that expertise and provides ready-to-use workflow processes aimed at Reg E compliance, reducing losses and improving operational efficiency in the electronic payments arena. We saw that our processes were well suited to tackle the electronic payments as well, which is even more critical due to the time constraints imposed by the regulations."
The solution for banks in the past has been to hire more people to address e-payment disputes. VECTOR:Resolve-RegE will not only help banks meet the Reg E mandated timeframe for dispute settlements, but will also reduce the manual research and monitoring involved. Even though it is a new solution, VECTOR:Resolve-RegE has a built-in, proven workflow engine that can be customized to fit within the parameters set by the installing banks. The solution also has built-in fraud detection features that will help banks quickly identify recurring trends and potential fraudulent and improper transactions. The system is delivered with required workflows predefined.
"There are individuals who have figured out what the threshold for some banks is for filing claims and getting money back without any questions asked," Hicks said. "These individuals tend to file multiple claims that all fall under the threshold. VECTOR:Resolve-RegE will detect abusive patterns like that as well duplicate claims. We have also added an internal component that will prevent the banks' employees from defrauding the system as well. VECTOR:Resolve-RegE is a solid solution that covers all the bases for the resolution of electronic payment transactions."