Financial Electronic Data Interchange (FEDI) ties enterprises and banks together to carry out commercial payments, fund transfers, and a number of other financial operations.
1. Features
(1) Convenient, efficient bill payment services:
Both enterprises and individuals can access this system via a communications network from their own offices to establish online connections with their bankers and quickly make payments or allocate
funds via computer.
(2) Multifunctional funds transfer instrument:
In addition to commercial payments and intrabank/interbank transfers, it will also be possible in the future to use FEDI to make bulk payments/bulk
collections (intrabank) and foreign currency payments, issue letters of
credit, and exchange financial data.
(3) Round-the-clock service, 365 days a year:
FEDI operates 24 hours a day, enabling enterprises to execute funds
transfers at any hour of the day or night regardless whether banks are open
or not.
(4) Outstanding data security:
•To ensure the security of transaction data, real-time serial number control
is employed to prevent duplicate processing, while security response data is used to make it impossible for a message recipient to deny receipt of
the message.
•Digital signatures are used to make it impossible for the sender of a
message to deny having sent it. Digital signature technology utilizes RSA asymmetric encryption/decryption and an MD5 hash algorithm. The sender appends a security signature to the electronic data, which is then authenticated by the receiver. The sender possesses a secret key, which he/she uses to sign the electronic transaction data. In the meantime, a public key is made available to the receiver (i.e. the authenticator), who uses it to authenticate the message and verify the validity of its content.
•To keep businesses and banks from getting into disputes over electronic
transaction data that would require data validation and certification by a trusted third party, the FISC has launched its own data validation and certification service. Taiwan CA Inc. provides public key certification so that online users can determine the true identity of transaction counterparties.
2. Benefits
(1) Paperless operations -- no documents to chop, no receipts to print out.
Saves on the expense of managing and storing physical documents,
reduces human error, and enhances the benefits derived by enterprises
from computerization.
(2) A single electronic certificate can be sent out to multiple banks for quick
allocation of account finds. Real-time online handling of transactions
means there's no need to run to the bank, spend money on transportation,
fill out forms, or wait in line.(back)
Employing user-end pay-as-you-go software, the customer's employee enters account transfer data (or the data is forwarded by the customer's financial and accounting system). After the data is reviewed by a manager and dispatched, the pay-as-you-go system signs the data and forwards a payment instruction (either directly or via a value-added network) to the paying bank. The paying bank checks the instruction to ensure it is free of error and immediately carries out an interbank account transfer. The FISC receives a debit message, checks to ensure it is free of error, and notifies the receiving bank to credit the proper account. After crediting the account, the receiving bank notifies the payee that his account has been credited. The application process is as following.
1. Apply to bank or value-added network operator for mailbox.
2. Apply to certification company for certification service.
(1) Fill out user registration application form.
(2) Apply for public key certificate.
(3) Enter certificate of your banker.
3. Enter into contract with your banker.
(1) Go to banker and fill out application for FEDI service
(Designated
account; designated mailbox; designated certificate)
(2) Obtain certificate from banker.
1. Real-time account transfers:
A customer needing to make a relatively small number of real-time account transfers can use the this type of transaction to flexibly allocate funds needed by an enterprise.
2. Scheduled payments:
A customer can schedule account transfers to handle periodic bulk payments coming due on different dates over the next three to six months. This service reduces the customer's cost of payment handling.
3. Bulk payments:
An enterprise needing to make a large number of payments (e. g. to pay suppliers, provide distributor commissions, distribute shareholder dividends) can use bulk payment service to make all the payments in a single transaction.