Last week, Missouri Credit Union Association (MCUA) submitted a comment letter to NACHA – The Electronic Payments Association regarding its person-to-person payments (P2P) proposal. Click here to read MCUA's letter. In the letters, MCUA urged NACHA to minimize the costs associated with the proposed changes to standardize P2P payments on Receiving Depository Financial Institutions and Originating Depository Financial Institutions, especially for smaller credit unions.
MCUA understands that the proposal is intended to facilitate risk management and payments innovation, and that a small but growing number of credit unions offer P2P services on the Automated Clearing House (ACH) network. Recently, the Federal Reserve Bank of Kansas City released a paper entitled “New Person-to-Person Payment Methods: Have Checks Met Their Match?” The report noted that new methods of P2P payments are growing, compared with the traditional check and cash channels. Further, the report suggested that the Federal Reserve System can play two unique roles to facilitate P2P payments: 1) work with the private sector to speed up the processing of ACH payments; and/or 2) take the lead in developing a directory service for financial institution account information.