Falls Church, VA, December 7, 2005 - The Accredited Standards Committee (ASC) X12, working with VECTORsgi and the State of Louisiana, conducted a successful proof of concept passing Extensible Markup Language (XML) syntax through the Automated Clearing House (ACH) Network. Created by ASC X12 member Dudley Brown of VECTORsgi, the test XML syntax architecture originated from X12 Context Inspired Component Architecture (CICA) components.
With the goal of examining the process of transmitting XML syntax via a NACHA corporate trade exchange (CTX) payment with X12 CICA XML addenda through the ACH Network, this proof of concept also provided feedback on ways to streamline and expedite a bank's processes.
"This proof of concept not only demonstrates straight-through processing for B2B electronic payments using XML syntax, but also is a tribute to X12 collaboration with so many key entities, including financial institutions, government, technology provider and industry association," said ASC X12 Finance Subcommittee Chair Byron Warren of SysCom Strategies, Inc.
The proof of concept included numerous collaborating entities: Marshall & Ilsley Bank originated the transaction using VECTORsgi software, and J.P. Morgan Chase Bank in Baton Rouge received and processed the test NACHA CTX payment with a CICA XML addenda, posting payment to its customer's account - the State of Louisiana, Department of Public Safety. The Federal Reserve Bank in Atlanta also served as a partner in the test by monitoring the transaction through the NACHA supported ACH Network. "Successfully incorporating XML formatting into electronic payments positions financial institutions and businesses alike to multiply the benefits derived from electronic payments," said Sydney Smith Hicks, president of VECTORsgi. "Presently, only 15 percent of all remittances delivered are suitable for automated reconciliation. The X12 Finance Subcommittee's efforts will improve the efficiency and popularity of electronic payments as we approach a fully automated solution."
ASC X12 members meet face-to-face three times per year to drive standards development, with the next ASC X12 meeting taking place February 5-10, 2006 in Seattle. Additional information on X12 CICA, membership and upcoming meetings can be found at www.X12.org.
About Accredited Standards Committee X12
The Accredited Standards Committee (ASC) X12, accredited by the American National Standards Institute and comprised of cross-industry representation, develops robust electronic exchange standards. X12 standards interact with a multitude of e-business technologies and serve as a premier tool for integrating electronic applications. With more than 2,500 individuals representing 360+ corporate members, ASC X12 facilitates the effective exchange of electronic information through standards-setting and active participation in emerging and technically relevant initiatives. To learn more about ASC X12, visit www.X12.org or call 703-970-4480.