The Electronic Payments Association (NACHA) awarded its 2005 George Mitchell Payments System Excellence Award to Citigroup. In 2004, Citigroup doubled the volume of automated clearing house (ACH) payments it originated and implemented ARC check conversion in its Citi Cards business unit for checks it receives from its cardholders. The award presentation took place at NACHA’s PAYMENTS 2005 conference.
“Citigroup is being recognized as a role model for the payments industry because it practices what it preaches,” said Elliott C. McEntee, president and CEO of NACHA. “We all promote electronic payments to companies and consumers, but Citigroup is also adopting electronic payments internally to meet its own business needs.”
In 2004, Citigroup originated 425 million ACH payments, including on-us items, doubling its volume of 2003, and in the process jumping from the eighth to the fifth largest bank originator of ACH payments, according to the NACHA Top 50 list.
Seventy-eight percent of Citigroup’s ACH growth is attributable to a decision by its Citi Cards business unit to use ARC to convert checks it receives from its cardholders into ACH debits. In 2004 Citi Cards converted 162 million of these checks into ACH debits. At its current rate, the Citi Cards unit alone will use ARC to convert 300 million checks into ACH debits in 2005.
In addition to ARC, Citi Cards uses Internet-initiated (WEB) and telephone initiated (TEL) e-checks to collect payments from its cardholders. In 2004, Citi Cards originated 39 million and 8 million of these payments, respectively.
Including other business units covering mortgages, loans, insurance, investments, payroll and pensions, as well as its own vendor payments, Citigroup used the ACH Network for 255 million of its internal payments in 2004.
Each year NACHA presents the George Mitchell Payments System Excellence Award in recognition of individuals and organizations that have improved the nation’s payments system. The award is named in honor of George Mitchell, former Vice-Chairman of the Federal Reserve Board of Governors.