Centralized Solution to Securely Transfer Payment Information Electronically to Banks from Multiple Enterprise Resource Planning (ERP) Systems

Abstract

Financial transactions in an organization, for example payments to suppliers and employee salaries, are generated from Enterprise Resource Planning (ERP) applications and require secure transmission to bank. The payment models have been evolving over the years which confronted transformations from the usage of manual payment methods, cheque, cards, Electronic Fund Transfer (EFT) to Automatic Clearing House (ACH). Current models utilize Public key infrastructure methods for authorization procedures which require certification and verification of customer and payment information. The present case study proposes a consolidated model that has been developed and deployed using a centralized infrastructure enabling secured payment information exchange from various business units in an organization to the bank. The developed method achieves economies of scale and scope, provides set of standardized procedures that integrate multiple ERP applications deployed for various business units distributed over multiple geographies on a secured platform at a minimum reconstruction and waiting time. The model has proven effective leading to cost and schedule saving from 25 % to 75% and provides a plug and play platform to business units in an organization to exchange payment information securely with various banks.