Dear Member:
As you may have heard, U.S. Central Bridge Corporate Federal Credit Union and the NCUA have announced the September 30, 2012 wind-down of U.S. Central Bridge Corporate as well as interim termination dates for certain products and services. Catalyst Corporate currently uses several of these services for delivering products to its member credit unions. The purpose of this correspondence is to outline Catalyst Corporate’s plans for transitioning away from U.S. Central Bridge Corporate, and what credit unions should expect in the coming months. Please take a moment to review this letter closely, as it describes important operational changes that may impact your credit union.
Automated Settlement:
Termination date: May 31, 2012
Transition time frame: February-May 31, 2012
Most credit unions are users of automated settlement – a unique payment system developed by U.S. Central Bridge Corporate for the efficient settlement of activity from multiple vendors (originators) for services these vendors provide to credit unions. Automated settlement activity occurs in the background and requires no action on the part of credit union staff today. The relationship between U.S. Central Bridge Corporate and the originators is being dissolved, which means that the originators and credit unions must transition to another means of settling this activity.
Catalyst Corporate is working to establish direct settlement relationships with the originators wherever possible. When we are able to do so, credit unions will experience no disruption in the transparent settlement of this activity from the originator.
Originators that have agreed to participate in settlement directly with Catalyst Corporate:
- Credit Union Direct Lending
- MoneyGram – Official Checks
- PEMCO – VISA & Mastercard
- Primary Financial
- PSCU Financial Services
- Town North Bank/Vantage
- Visa/USA – via draw down
In some cases, originators will amend their service practices to utilize the ACH payment channel to satisfy credit union settlement obligations. Officials from U.S. Central Bridge Corporate and Catalyst Corporate have been in contact with these originators, and it is our understanding that they will move quickly to transition this activity to ACH, though the corporates will not be directly involved in executing this transition. In the event that an originator contacts your credit union about executing new ACH settlement authorization paperwork, please complete and return the documentation as efficiently as possible to ensure there is no disruption.
Key differences in using ACH to replace automated settlement:
- Settlement via ACH may be deferred by one day compared to the same-day settlement provided through the automated settlement service, unless an originator can make operating adjustments to compensate.
- Transaction descriptions depicted on your corporate share account transaction history and statements may change, coinciding with the descriptive information provided by the originator's ACH entry.
- The ability to post specific vendor settlement entries to unique share types will no longer be available.
Originators that will not set up direct settlement relationships with Catalyst Corporate:
- Certegy/Equifax
- Crittson Card Processing
- Fiserv
- CUNA Mutual
- FIS TSYS
- TBA Insurance Group
- American Express – Travelers Cheques
- Corporate Network E-Com
- CSG Student Loan Network
- League Services, Inc.
- TMG Card Services
- Western Union
- ICUL Service Corporation
Back to the top
APEX-ACH (Quickfile):
Termination Date: September 30, 2012
Transition time frame: March-June 2012
Catalyst Corporate offers more than one ACH solution today. A relatively small number of member credit unions utilize the APEX-ACH system to access Quickfile, and that platform is being discontinued by U.S. Central Bridge Corporate. Most utilize the ACH Online solution and for those credit unions nothing will change.
APEX-ACH (Quickfile) users will be transitioned to ACH Online between March-June 2012, enabling Catalyst Corporate members to avoid the 80% fee increase that U.S. Central Bridge Corporate will impose on July 1, 2012. Catalyst Corporate will provide multiple training opportunities and work individually with all users on the conversion. Catalyst’s staff has extensive experience with the migration from APEX-ACH to ACH Online, which will translate into a seamless transition experience.
Register for training
Back to the top
Safekeeping:
Termination date: May 31, 2012
Transition time frame: Not applicable
Recently, all Catalyst Corporate member credit unions transitioned from the U.S. Central Bridge Corporate safekeeping product to the Alaska USA service. No additional action is necessary.
Back to the top
CNCC/ADT (Cash Concentration):
Termination date: March 31, 2012
Transition time frame: February-March 31, 2012
The Corporate Network Cash Concentration (CNCC) and Automated Debit Transfer (ADT) program provided credit unions with the ability to transfer funds to and from their Catalyst Corporate account using a touch-tone phone.
Credit unions that use CNCC/ADT for moving funds can transition this activity to either wire transfer or ACH origination. Wire transfer provides same-day convenience at a slightly higher cost, while ACH provides the most cost-effective solution. Credit unions that are Catalyst Corporate wire transfer users or that are set up to originate ACH transactions through ACH On-line or Quickfile can transition to this alternative solution immediately.
Back to the top
International Services (International Wires and International Check Collection):
Termination date: March 31, 2012
Transition time frame: February-March 31, 2012
Catalyst Corporate has a direct relationship with JP Morgan Chase to provide an international wire transfer service to member credit unions. As a result, no action is required for most Catalyst Corporate members utilizing this service.
Exception: members who came to Catalyst through consolidations with Northwest Corporate or Georgia Corporate were allowed to send international wires through U.S. Central Bridge Corporate’s ePD interface, also known to some as Catalyst FX. After March 31, 2012 it will be necessary for these credit unions to begin using TranZact to access international wires. TranZact’s international wires module is easy to use, and training will be provided in advance.
Catalyst Corporate is working to establish a direct relationship with Travelex, the partner utilized by U.S. Central Bridge Corporate, to provide member credit unions with an international check collection service. This will be a back-office transition and does not require any action on the part of Catalyst Corporate’s members.
Back to the top
Bill Pay:
Termination date: Not applicable
Transition time frame: Not applicable
In December 2011 the NCUA announced that CO-OP Financial Services would purchase the Corporate Network eCom CUSO, which provides bill pay services to a small number of Catalyst Corporate member credit unions. Corporate Network eCom was wholly owned by U.S. Central Bridge Corporate. The purchase will require no changes to the processing platform and should therefore be seamless.
Back to the top
CU Investment Solutions (formerly ISI):
Termination date: Not applicable
Transition time frame: Not applicable
In September 2011 a group of corporate credit unions, including Catalyst Corporate, purchased the U.S. Central Bridge Credit Union Investment Solutions CUSO and continues to operate the broker-dealer with no changes to its product offering, services or registered representatives.
If you have any questions about the service transitions described in this letter please contact the Member Service Department at 214.703.7500 or 800.442.5763, option 1. Or contact me directly at extension 7830 or bganey@catalystcorp.org.
Sincere regards,
Brad Ganey
Senior Vice President/Chief Operating Officer
Back to the top
|