August 2, 2016
TABLE OF CONTENTS
Over the last six months, Levvel has seen a significant increase in demand from banks and third party technology companies looking to understand more about clearXchange (CXC)/Early Warning Services (EWS). This momentum makes it clear that banks, digital wallets, and third party aggregators are all looking for a way to compete with the likes of Venmo and Paypal. There is a strong belief that EWS’s combination of fraud mitigations services, user directory, and payment network creates a compelling foundation upon which to build P2P, B2C, and other money movement services. Today’s market announcement of a new partnership between Early Warning, Visa, and Mastercard is a significant step forward, one that adds sizeable reach to the blossoming, bank-owned service.
With this new partnership, CXC banks can now send money real-time to any debit card that can be accessed by Visa Direct or MasterCard Send. For sending banks, the bank processes the CXC transactions as they normally do: look up the receiver, run limit checks, apply fraud controls, and initiate the transaction. However, instead of settling via ACH to the end recipient’s DDA, the bank sends the payment transaction to CXC, which originates the Visa/MC original credit transaction (OCT) on behalf of the sending bank to credit the receivers debit card. Once CXC performs the OCT, it updates the sending bank, which will see its transactions in its normal debit network settlement files. It’s a creative solution to a challenge that plagued previous iterations of the CXC service: achieving true, real-time ubiquity across partner and non-partner banks.
This strategic partnership will only increase the strong interest in CXC that we’ve already observed, one that led us to create a white paper that shares our in-depth knowledge of their network. This paper outlines key CXC integration points, technical considerations, and lessons learned from helping numerous banks integrate with the network. It serves as a guide for partners looking to integrate with CXC, and can help them avoid common stumbling blocks with which others have struggled. We are strong believers in the value of this Early Warning product and its broad appeal to both banks and third party players. It will be an exciting 12 months as clearXchange and its partners continue to evolve these services.
Chief Strategy Officer
Scott Harkey is Levvel's Chief Strategy Officer while also leading the Payments and Financial Services work. He has 15 years of banking experience including leading the technology team that implemented digital wallet products at Bank of America along with 10 years of technology merger integration and IT operations outsourcing work at Wells Fargo. Scott brings a unique “insider” point of view combined with a proven track record of delivery to banks, technology providers, and merchants exploring the digital payments space.
In 2019, we participated in the RTP Buildathon, sponsored by The Clearing House, Oracle, Yodlee, and The Carolina Fintech Hub. Our task was creating a compelling use case for leveraging the RTP rail and building a working prototype to demo our idea.
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