Today on the opening day of NACHA Payments 2010, Clear2Pay, the international technology provider of next generation payment solutions for financial institutions, announces the launch of its Tax Data Service (TDS) product. TDS automates and streamlines the formatting and routing of tax payments, replacing a traditionally manual and resource intensive process.
The Tax Data Service (TDS) addresses the complex issue of processing tax payments in the United States: tens of thousands of different tax type codes to hundreds of tax authorities need to be made with the correctly formatted addenda record in the CCD+ payment and the matching payment routing instructions for the respective tax authority and type. The maintenance of this data has to date been a manual and laborious process for banks and their customers, prone to human error and requiring code-based updates to installed applications. The TDS, in contrast, is a hosted and web-service enabled solution that empowers customers to retain ownership of their ACH origination channels while leveraging an industry utility for the time consuming and manual process of maintaining tax format and routing data.
Matt Ellis, General Manager of Clear2Pay Americas states, “The Tax Data Service can be accessed on its own or in combination with Clear2Pay’s ACH origination software. Our team of dedicated data analysts and our cutting edge technology guarantee that changes to existing formats or new tax formats are available to banks, companies and payment processors within 24 hours of notification and verification. Banks, corporations and software providers spend hundreds of thousands of dollars per year collecting and updating tax format information. Inaccurate formatting or routing information exposes companies to material late fees and penalties. The Tax Data Service will help customers lower costs and manage risk.”
Rob Unger, Senior Director of NACHA’s Council for Electronic Billing and Payment, continues, “NACHA recognizes the importance of having accurate information for paying taxes through the Automated Clearing House Network. Services that help to simplify the existing models for provisioning this data are an important step forward for the market.” Andrew Schmidt, Research Director, Global Payments at TowerGroup concludes: “Banks and payment processors realize now more than ever that they need to offer their corporate customers true value-added services thatreduce costs, increase efficiency, and provide greater payments visibility. Services that greatly reduce the effort and cost of routine, obligatory compliance activities – like paying taxes – allow banks and payments processors to quickly add value to their corporate customers and free these customers to create greater value themselves.”