Magazine article American Banker

N.Y. Clearing House to Help Nacha Get off the Dime on Financial EDI

Magazine article American Banker

N.Y. Clearing House to Help Nacha Get off the Dime on Financial EDI

Article excerpt

The New York Clearing House has agreed to help jump-start a stalled effort by the National Automated Clearing House Association to develop a low-cost financial electronic data interchange service.

Software for the service, which is to be aimed at community financial institutions, was originally to have been developed by Maxxus Inc. of San Francisco.

But Dallas-based Sterling Software Inc.'s recent acquisition of Maxxus complicated the development agreement and led to Maxxus' withdrawal from the project.

The New York Clearing House has agreed to work with MCI Communications Corp., Washington, on a DOS-based version of the electronic data interchange service.

MCI, which is lead vendor on Nacha's EDI project, has also lined up an undisclosed partner for a Windows-based version.

Nacha's services are designed to bring financial EDI - in which banks and corporate customers electronically exchange payments and related data - to smaller banks. Such institutions have historically been precluded from offering EDI because of the high cost of the necessary systems.

The new service was originally expected to be in a pilot stage in the second quarter of 1995 and commercially available soon after, but Maxxus' withdrawal caused delays.

Maggie Scarborough, a senior director at Nacha, said a revised release schedule calls for internal testing next month and a pilot in October.

Ms. Scarborough said the New York Clearing House had been developing EDI software before its agreement to participate in the Nacha/MCI project. …

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