ProfitStars iPay Solutions Hybrid Risk Model

Hybrid Risk Model is a new payment processing model for iPay Solutions’ Consumer Online Bill Pay, created to provide a more consistent and reliable payment experience for banks’ online bill payment subscribers across all payment types. It offers banks control over the flow of funds, risk tolerance and limit settings for online bill pay.

This is relevant to community banks today because:

1. Banks are responsible for collection on any payment exception and able to maintain the revenue associated with NSF and uncollected fees. This funding model does not verify the subscriber’s funds availability before initiating payment to the payee, therefore putting the risk, and essentially control over NSF and uncollected item decisions, on the bank.

2. Banks set their own risk limits and manage them globally and at the customer level, enabling them to leverage existing bill pay subscriber relationships.

3. It offers consistency by posting electronic payment debits to subscriber’s account on delivery date and drawing and clearing checks that clear when presented to the institution by the payee. The bank’s subscriber retains the float management rather than the payment processor.

4. Transactions through iPay process the same way based on the financial institution’s custom settings, allowing it to control the user’s experience — not a third party.

ProfitStars, a division of Jack Henry & Associates Inc.