<<Why would CF keep their ACH (PEP+) products and services? >>
I recall that CF has a dominant share (70% +) of the market for the software used by Financial Institutions to manage the origination and receipt of ACH transactions. Staying in the business of providing this software makes sense. CF provides the software, but not the actual service...the banks provide the service (access to the ACH system) to their commercial accounts...see how this is consistent with CF's billpay and E-bill strategy ??? Hanging on to it makes sense, because it keeps them in the back office of the banks, and is directly related to payment systems, Checkfree's primary focus. Yet the bank is in front, CF is in the background.
<<Or is CF just trying to corner the market on all transactions? >>
Yes, with the banks as partners. Eliminate the post office and paper checks today. Maybe phase the Fed down tomorrow, where direct presentment volumes and economies of scale permit. But the banker relationship with their retail and wholesale customer will continue to be in place.
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For those with a technical interest, a few paragraphs from the FAQ's page at MSFDC are below. The VISA e-pay system is really just another of several operators that operate under the umbrella of the ACH settlement system. So its ACH format and system, VISA brand....
MSFDC link to glossary of terms:
msfdc.com
Excerpts:
ACH
The ACH Network is a highly reliable and efficient nationwide batch-oriented electronic funds transfer system governed by the ACH Operating Rules, issued and managed by the National Automated Clearing House Association (NACHA). ACH is the network that millions of consumers use today to pay bills via Automatic Direct Debit.
The ACH Network performs interbank clearing of electronic payments for participating Financial Institutions. ACH Operators run central clearing facilities through which Financial Institutions transmit or receive ACH entries. The Arizona Clearing House Association, Federal Reserve, New York Automated Clearing House, and Visa USA act as ACH Operators.
EDI-Electronic Data Interchange
Electronic Data Interchange (EDI) is a widely accepted transaction format for the application-to-application transfer of business documents between computers. MSFDC's service provides standard translators for EDI-810 (statements) and EDI-820 (payment) format messages. Most companies have developed extensions that are required for their application of EDI. As a result, the EBPP service includes the source code for these translators to permit easy Biller customization and integration with their existing EDI systems.
NACHA-National Automated Clearing House Association
The National Automated Clearing House Association (NACHA) is a not for profit banking trade association with the largest number of member Financial Institutions in the country. NACHA promulgates the rules and operating guidelines for electronic payments through the ACH Network, and for Electronic Benefits Transfers, electronic checks, financial EDI and cross-border transactions. The ACH Network links America's depository Financial Institutions to the nationwide electronic payment and collection infrastructure.
See nacha.org for additional information.
Hope this is of some help.
Brian
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