SAN ANTONIO, Texas - Citigroup and National City Corp. were recognized for their respective accomplishments in electronic-payment system implementation during NACHA -The Electronic Payments Association's PAYMENTS 2005 conference.
According to a news release, Citigroup received NACHA's 2005 George Mitchell Payments System Excellence Award. National City received a NACHA 2005 Kevin O'Brien ACH Quality Award.
Citigroup was chosen for its 2004 payments volume and check-conversion initiative. Last year, Citigroup doubled the volume of automated clearing house payments it originated over 2003, to 425 million, and implemented ARC check conversion for cardholders' checks in its Citi Cards business unit.
National City was recognized as a financial institution receiver of ACH payments. The company completed integration of its paper-based checking account and electronic-payment systems.
"It is up to National City to make sure that our clients' payment reporting needs are met," said Mary Ann Francis, senior vice president and manager of National City's Global Trade and Treasury Product Management division. "Our business clients' checks are being converted today. By integrating our check and electronic systems, National City ensures that our clients have full reporting of their payments as well as complete access to treasury-management services."
The Kevin O'Brien ACH Quality Award is presented annually to organizations that maintain and improve the quality of ACH services, as well as the integrity and reliability of the ACH Network.
In 2004, Citigroup jumped from eighth to fifth largest bank originator of ACH payments, according to the NACHA Top 50 list; and 78 percent of the bank's ACH growth is linked to the Citi Cards business unit's decision to use ARC to convert checks into ACH debits, the release noted. Last year Citi Cards converted 162 million of checks.
Last year, the bank used the ACH Network for 255 million of its internal payments. And the Citi Cards unit expects to convert 300 million checks into ACH debits in 2005.
"Citigroup has embraced the push to eliminate its own paper-based payments and collections throughout the organization," said Steve Garofalo, president and chief executive of Citibank (Nevada)'s Citi Cards division.
