The document discusses current trends in electronic payments in the United States based on data from the Federal Reserve Payments Study. It finds that while card payments are growing the fastest in terms of transaction volume, automated clearinghouse payments make up the largest portion of total dollar value transferred. Checks continue to decline with a 3.1% annual drop in transactions from 2012 to 2015. Remote card payments, including credit cards, are also growing significantly faster than in-person card payments.

1. Getting Paid:
EDI’s Stepchild
Rick Sundahl
Grey Wolf Systems

2. AGENDA
 Background/History
 Current Trends in Payments
 Applying EDI to Electronic Payments
 Grey Wolf’s Offering

3. Background/History

4. Federal Reserve
TheFederal ReserveSystem is the central bank of the United States. It was
founded by Congress in 1913 to providethe nation with a safer, more
flexible, and more stable monetary and financial system.
- Monetary Policy
- Banking Supervision
- Financial Services

5. Federal Reserve – FinancialServices
The Federal Reserveisa "bankforbanks"andprovides financialservices to depositoryinstitutions
such asbanks,credit unions,andsavings andloans.Theservices provided aremuch like thosethat
depositoryinstitutionsprovidetotheircustomers.Theseservices includecollecting checks,
electronicallytransferringfundsanddistributingandreceiving cashandcoin.
- ElectronicPayments
- ACH
- Fedwire
- Check Collection
- Cash
- SavingsBonds

6. PaymentsScope
“In its simplest form, the clearing and settlement of a financial transaction, regardless
ofthe asset type, requires (1) a network of participants, (2) an asset or set of assets that
are transferred among those participants, and (3) a transfer process that defines the
procedures and obligations associated with the transaction.
“Distributed ledger technology in payments, clearing, and
settlement”
Finance and Economics Discussion Series
Divisions of Research & Statistics and Monetary Affairs
Federal Reserve Board, Washington, D.C.
2016

7. Market structure implications
 Speedand efficiency
 Safety and security
 Ubiquity and collaboration
 Interoperability
 Rules and standards
 Governance
“Faster Payments: Market Structure and Policy Considerations”
Finance and Economics Discussion Series
Divisions of Research & Statistics and Monetary Affairs
Federal Reserve Board, Washington, D.C.
2017

8. Definitionof EDI
“Electronic Data Interchange (EDI) is the computer-
to-computer exchangeof business documents in a
standard electronic format between business
partners.”
- EDIBasics

10. EDI 820 and 823
(ASC X12F Subcommittee)

11. EDI 820/823 Poll

12. Current Trends in Payments

13. The Federal ReservePaymentsStudy
2017 Annual Supplement
“…the results are based on survey data collected from depository and financial
institutions, general-purpose card networks and processors, and issuers of various
private-label payment instruments.”

14. The Federal ReservePaymentsStudy
2017 Annual Supplement
Transactions (B) USD Value ($T)
$ per
Transaction
Card payments 103.5 5.65$ 55$
Network automated clearinghouse payments 19.3 41.64$ 2,159$
Check payments 17.9 28.97$ 1,614$

15. The Federal ReservePaymentsStudy
2017 Annual Supplement
Transactions (B) USD Value ($T)
$ per
Transaction
Card payments 103.5 5.65$ 55$
Network automated clearinghouse payments 19.3 41.64$ 2,159$
Check payments 17.9 28.97$ 1,614$

16. The Federal ReservePaymentsStudy
2017 Annual Supplement
Transactions (B) USD Value ($T)
$ per
Transaction
Card payments 103.5 5.65$ 55$
Network automated clearinghouse payments 19.3 41.64$ 2,159$
Check payments 17.9 28.97$ 1,614$

17. The Federal ReservePaymentsStudy
2017 Annual Supplement
Transactions (B) USD Value ($T)
$ per
Transaction
Card payments 103.5 5.65$ 55$
Network automated clearinghouse payments 19.3 41.64$ 2,159$
Check payments 17.9 28.97$ 1,614$

18. The Federal ReservePaymentsStudy
2017 Annual Supplement
Transactions USD Value Transactions USD Value
Card payments 7.5% 6.7% 7.4% 5.8%
Network automated clearinghouse payments 4.9% 4.1% 5.3% 5.1%
Check payments -3.1% 2.1% 0.0% 0.0%
Compounded Annual Growth Rate
2012 - 2015 2015 - 2016

19. The Federal ReservePaymentsStudy
2017 Annual Supplement
Transactions USD Value Transactions USD Value
Card payments 7.5% 6.7% 7.4% 5.8%
Network automated clearinghouse payments 4.9% 4.1% 5.3% 5.1%
Check payments -3.1% 2.1% 0.0% 0.0%
Compounded Annual Growth Rate
2012 - 2015 2015 - 2016

20. The Federal ReservePaymentsStudy
2017 Annual Supplement
Transactions USD Value Transactions USD Value
Card payments 7.5% 6.7% 7.4% 5.8%
Network automated clearinghouse payments 4.9% 4.1% 5.3% 5.1%
Check payments -3.1% 2.1% 0.0% 0.0%
Compounded Annual Growth Rate
2012 - 2015 2015 - 2016

21. The Federal ReservePaymentsStudy
2017 Annual Supplement
Transactions (B) USD Value ($T)
$ per
Transaction
Card payments 103.5 5.65$ 55$
Debit cards 69.6 2.56$ 37$
Non-prepaid 59 2.27$ 38$
In person 49.5 1.58$ 32$
Remote 9.5 0.69$ 73$
Prepaid 10.6 0.30$ 28$
General purpose 4.3 0.15$ 35$
In person 3.6 0.10$ 29$
Remote 0.8 0.05$ 63$
Private label 3.6 0.07$ 20$
Electronic benefits transfers (EBT) 2.6 0.08$ 29$
Credit cards 33.9 3.08$ 91$
General purpose 31 2.80$ 90$
In person 21.7 1.30$ 60$
Remote 9.3 1.50$ 161$
Private label 2.8 0.28$ 98$
Network automated clearinghouse payments 19.3 41.64$ 2,159$
Credit transfers 8 26.78$ 3,333$
Debit transfers 11.3 14.86$ 1,321$
Check payments 17.9 28.97$ 1,614$
U.S. Treasury checks 0.1 0.14$ 2,413$
Postal money orders 0.1 0.02$ 226$
Commercial checks1 17.8 28.80$ 1,618$
Interbank1 13.3 20.92$ 1,573$
On-us1 4.5 7.88$ 1,751$

22. The Federal ReservePaymentsStudy
2017 Annual Supplement
Transactions (B) USD Value ($T)
$ per
Transaction
Card payments 103.5 5.65$ 55$
Debit cards 69.6 2.56$ 37$
Non-prepaid 59 2.27$ 38$
In person 49.5 1.58$ 32$
Remote 9.5 0.69$ 73$
Prepaid 10.6 0.30$ 28$
General purpose 4.3 0.15$ 35$
In person 3.6 0.10$ 29$
Remote 0.8 0.05$ 63$
Private label 3.6 0.07$ 20$
Electronic benefits transfers (EBT) 2.6 0.08$ 29$
Credit cards 33.9 3.08$ 91$
General purpose 31 2.80$ 90$
In person 21.7 1.30$ 60$
Remote 9.3 1.50$ 161$
Private label 2.8 0.28$ 98$
Network automated clearinghouse payments 19.3 41.64$ 2,159$
Credit transfers 8 26.78$ 3,333$
Debit transfers 11.3 14.86$ 1,321$
Check payments 17.9 28.97$ 1,614$
U.S. Treasury checks 0.1 0.14$ 2,413$
Postal money orders 0.1 0.02$ 226$
Commercial checks1 17.8 28.80$ 1,618$
Interbank1 13.3 20.92$ 1,573$
On-us1 4.5 7.88$ 1,751$

23. The Federal ReservePaymentsStudy
2017 Annual Supplement
Transactions USD Value Transactions USD Value
Card payments 7.5% 6.7% 7.4% 5.8%
Debit cards 7.2% 6.9% 6.0% 5.3%
Non-prepaid 7.7% 6.6% 6.8% 6.1%
In person 5.9% 2.5% 5.2% 5.0%
Remote 19.5% 19.4% 14.9% 8.9%
Prepaid 4.4% 8.7% 1.7% -1.3%
General purpose 11.3% 11.1% 2.7% 0.7%
In person 8.2% 4.1% 0.7% -0.8%
Remote 34.2% 36.9% 12.3% 3.9%
Private label -0.3% 15.0% 5.0% 1.0%
Electronic benefits transfers (EBT) 1.7% 0.2% -4.4% -7.3%
Credit cards 8.1% 6.6% 10.2% 6.3%
General purpose 8.4% 7.3% 10.5% 7.0%
In person 5.5% 1.1% 7.9% 4.1%
Remote 16.4% 14.2% 16.6% 9.6%
Private label 4.9% 0.2% 7.5% -1.6%
Network automated clearinghouse payments 4.9% 4.1% 5.3% 5.1%
Credit transfers 5.0% 5.7% 5.2% 5.1%
Debit transfers 4.8% 1.4% 5.3% 5.2%
Check payments -3.1% 2.1% 0.0% 0.0%
U.S. Treasury checks -21.0% -10.3% -2.6% 6.0%
Postal money orders -5.2% -1.8% -4.0% -0.4%
Commercial checks1 -3.0% 2.2% -3.6% -3.7%
Interbank1 -1.5% 6.7% -3.4% -3.8%
On-us1 -7.1% -6.9% -4.2% -3.3%
Compounded Annual Growth Rate
2012 - 2015 2015 - 2016

24. The Federal ReservePaymentsStudy
2017 Annual Supplement
Transactions USD Value Transactions USD Value
Card payments 7.5% 6.7% 7.4% 5.8%
Debit cards 7.2% 6.9% 6.0% 5.3%
Non-prepaid 7.7% 6.6% 6.8% 6.1%
In person 5.9% 2.5% 5.2% 5.0%
Remote 19.5% 19.4% 14.9% 8.9%
Prepaid 4.4% 8.7% 1.7% -1.3%
General purpose 11.3% 11.1% 2.7% 0.7%
In person 8.2% 4.1% 0.7% -0.8%
Remote 34.2% 36.9% 12.3% 3.9%
Private label -0.3% 15.0% 5.0% 1.0%
Electronic benefits transfers (EBT) 1.7% 0.2% -4.4% -7.3%
Credit cards 8.1% 6.6% 10.2% 6.3%
General purpose 8.4% 7.3% 10.5% 7.0%
In person 5.5% 1.1% 7.9% 4.1%
Remote 16.4% 14.2% 16.6% 9.6%
Private label 4.9% 0.2% 7.5% -1.6%
Network automated clearinghouse payments 4.9% 4.1% 5.3% 5.1%
Credit transfers 5.0% 5.7% 5.2% 5.1%
Debit transfers 4.8% 1.4% 5.3% 5.2%
Check payments -3.1% 2.1% 0.0% 0.0%
U.S. Treasury checks -21.0% -10.3% -2.6% 6.0%
Postal money orders -5.2% -1.8% -4.0% -0.4%
Commercial checks1 -3.0% 2.2% -3.6% -3.7%
Interbank1 -1.5% 6.7% -3.4% -3.8%
On-us1 -7.1% -6.9% -4.2% -3.3%
Compounded Annual Growth Rate
2012 - 2015 2015 - 2016

25. The Federal ReservePaymentsStudy
2017 Annual Supplement
Transactions USD Value Transactions USD Value
Card payments 7.5% 6.7% 7.4% 5.8%
Debit cards 7.2% 6.9% 6.0% 5.3%
Non-prepaid 7.7% 6.6% 6.8% 6.1%
In person 5.9% 2.5% 5.2% 5.0%
Remote 19.5% 19.4% 14.9% 8.9%
Prepaid 4.4% 8.7% 1.7% -1.3%
General purpose 11.3% 11.1% 2.7% 0.7%
In person 8.2% 4.1% 0.7% -0.8%
Remote 34.2% 36.9% 12.3% 3.9%
Private label -0.3% 15.0% 5.0% 1.0%
Electronic benefits transfers (EBT) 1.7% 0.2% -4.4% -7.3%
Credit cards 8.1% 6.6% 10.2% 6.3%
General purpose 8.4% 7.3% 10.5% 7.0%
In person 5.5% 1.1% 7.9% 4.1%
Remote 16.4% 14.2% 16.6% 9.6%
Private label 4.9% 0.2% 7.5% -1.6%
Network automated clearinghouse payments 4.9% 4.1% 5.3% 5.1%
Credit transfers 5.0% 5.7% 5.2% 5.1%
Debit transfers 4.8% 1.4% 5.3% 5.2%
Check payments -3.1% 2.1% 0.0% 0.0%
U.S. Treasury checks -21.0% -10.3% -2.6% 6.0%
Postal money orders -5.2% -1.8% -4.0% -0.4%
Commercial checks1 -3.0% 2.2% -3.6% -3.7%
Interbank1 -1.5% 6.7% -3.4% -3.8%
On-us1 -7.1% -6.9% -4.2% -3.3%
Compounded Annual Growth Rate
2012 - 2015 2015 - 2016

26. The Federal ReservePaymentsStudy
2017 Annual Supplement
Transactions USD Value Transactions USD Value
Card payments 7.5% 6.7% 7.4% 5.8%
Debit cards 7.2% 6.9% 6.0% 5.3%
Non-prepaid 7.7% 6.6% 6.8% 6.1%
In person 5.9% 2.5% 5.2% 5.0%
Remote 19.5% 19.4% 14.9% 8.9%
Prepaid 4.4% 8.7% 1.7% -1.3%
General purpose 11.3% 11.1% 2.7% 0.7%
In person 8.2% 4.1% 0.7% -0.8%
Remote 34.2% 36.9% 12.3% 3.9%
Private label -0.3% 15.0% 5.0% 1.0%
Electronic benefits transfers (EBT) 1.7% 0.2% -4.4% -7.3%
Credit cards 8.1% 6.6% 10.2% 6.3%
General purpose 8.4% 7.3% 10.5% 7.0%
In person 5.5% 1.1% 7.9% 4.1%
Remote 16.4% 14.2% 16.6% 9.6%
Private label 4.9% 0.2% 7.5% -1.6%
Network automated clearinghouse payments 4.9% 4.1% 5.3% 5.1%
Credit transfers 5.0% 5.7% 5.2% 5.1%
Debit transfers 4.8% 1.4% 5.3% 5.2%
Check payments -3.1% 2.1% 0.0% 0.0%
U.S. Treasury checks -21.0% -10.3% -2.6% 6.0%
Postal money orders -5.2% -1.8% -4.0% -0.4%
Commercial checks1 -3.0% 2.2% -3.6% -3.7%
Interbank1 -1.5% 6.7% -3.4% -3.8%
On-us1 -7.1% -6.9% -4.2% -3.3%
Compounded Annual Growth Rate
2012 - 2015 2015 - 2016

27. NationalAutomated ClearingHouse Association
 Founded in 1974
 TheElectronic Payments Association
 Threeareas of focus
‒ NACHA OperatingRules
‒ ACH NetworkEnforcementandRiskManagement
‒ ACH NetworkDevelopment
 25.5 Billion transactions in 2016 (5.4%increase)
‒ Directdeposit
‒ SocialSecurity
‒ Electronicbill payments(like utilityandmortgagepayments)
‒ Person-to-person
‒ Business-business

28. NACHATop Originators and Receivers
(2016)

29. ACH Network and ACH Payments Process
 An Originator–whetherthat’s anindividual,a corporationoranotherentity–initiateseitheraDirectDepositorDirectPayment
transactionusingthe ACHNetwork. ACHtransactionscanbe eitherdebitorcreditpaymentsand commonlyincludeDirect
Depositof payroll,government andSocialSecuritybenefits,mortgage andbillpayments, onlinebankingpayments, person-
to-person (P2P)and business-to-business(B2B)payments, to namea few.

30. ACH Network and ACH Payments Process
 An Originator–whetherthat’s anindividual,a corporationoranotherentity–initiateseitheraDirectDepositorDirectPayment
transactionusingthe ACHNetwork. ACHtransactionscanbe eitherdebitorcreditpaymentsand commonlyincludeDirectDeposit
ofpayroll,governmentand SocialSecuritybenefits,mortgageand billpayments,onlinebanking payments,person-to-person(P2P)
and business-to-business(B2B) payments,toname afew.
 Insteadofusingpaperchecks,ACH entriesareenteredand transmittedelectronically,making transactionsquicker,saferand easier.
 TheOriginatingDepositoryFinancialinstitution(ODFI)enterstheACH entry at therequestofthe Originator.

31. ACH Network and ACH Payments Process
 An Originator–whetherthat’s anindividual,a corporationoranotherentity–initiateseitheraDirectDepositorDirectPayment
transactionusingthe ACHNetwork. ACHtransactionscanbe eitherdebitorcreditpaymentsand commonlyincludeDirectDeposit
ofpayroll,governmentand SocialSecuritybenefits,mortgageand billpayments,onlinebanking payments,person-to-person(P2P)
and business-to-business(B2B) payments,toname afew.
 Insteadofusingpaperchecks,ACH entriesareenteredand transmittedelectronically,making transactionsquicker,saferand easier.
 The OriginatingDepositoryFinancial institution(ODFI) entersthe ACH entryat the requestofthe Originator.
 The ODFI aggregatespaymentsfrom customersand transmitstheminbatchesatregular,predeterminedintervalstoanACH
Operator.
 ACH Operators(two centralclearingfacilities:TheFederalReserveorTheClearingHouse) receivebatchesofACH entriesfrom
the ODFI.

32. ACH Network and ACH Payments Process
 An Originator–whetherthat’s anindividual,a corporationoranotherentity–initiateseitheraDirectDepositorDirectPayment
transactionusingthe ACHNetwork. ACHtransactionscanbe eitherdebitorcreditpaymentsand commonlyincludeDirectDeposit
ofpayroll,governmentand SocialSecuritybenefits,mortgageand billpayments,onlinebanking payments,person-to-person(P2P)
and business-to-business(B2B) payments,toname afew.
 Insteadofusingpaperchecks,ACH entriesareenteredand transmittedelectronically,making transactionsquicker,saferand easier.
 The OriginatingDepositoryFinancial institution(ODFI) entersthe ACH entryat the requestofthe Originator.
 The ODFI aggregatespaymentsfrom customersand transmitstheminbatchesatregular,predeterminedintervalstoanACH
Operator.
 ACH Operators(two centralclearingfacilities:The FederalReserveorTheClearingHouse)receivebatchesofACH entriesfromthe
ODFI.
 The ACHtransactionsaresortedandmade availableby theACH Operatortothe ReceivingDepositoryFinancial Institution(RDFI).
 The Receiver’saccountisdebitedorcreditedby the RDFI, accordingtothe typeofACH entry.Individuals,businessesand other
entitiescanallbe Receivers.
 Each ACH credittransactionsettlesinoneto two businessdays,and eachdebittransactionsettlesinjustonebusinessday, as
pertheRules.

33. Blockchain Poll

34. Distributed Ledger Technology
“DLT has the potential to providenewways to transfer and recordthe ownership of
digital assets; immutably and securely storeinformation; provide for identity
management; and otherevolving operations”
“Distributed ledger technology in payments, clearing, and
settlement”
Finance and Economics Discussion Series
Divisions of Research & Statistics and Monetary Affairs
Federal Reserve Board, Washington, D.C.
2016

35. Cryptocurrency to USD
B Bitcoin
 Ethereum
 Litecoin
 Ripple

36. Cryptocurrency to USD

37. Cryptocurrency to USD

38. Applying EDI to
Electronic Payments

39. Old School Payments

40. Old School Payments

41. Newer School EDI Payments

43. Futureof EDI Payments

44. Futureof EDI Payments

45. Futureof EDI Payments

46. Futureof EDI Payments

47. Grey Wolf’s Offerings
greywolf.com

48. Grey Wolf’s Focus
 eCommerceSolutions
‒ PartnerConnect(EDI)
‒ Magento (OnlineStore)
 eCommerceEnablers
‒ APIs
‒ NuSync

49.  Prerequisite: APIs
 Document setups
‒ $660initialdocument
‒ $330subsequentdocuments
 Transaction fees
‒ $60forfirst100documentspermonth
‒ $0.016perdocument(potential)

50. Upcoming Events
 Magento: Storefront Alternative
February8
 TUG Connects 2018
March26 – 29
 P21WWUG Connect 2018
August 19 -21
 Future Webinars

51. Tips-N-Tricks
facebook.com/GreyWolfSystemstwitter.com/GreyWolfSystems

52. THANK YOU
ricks@greywolf.com
719.264.9653 x333
greywolf.com