[comp.dcom.telecom] Payment Processing

Ed_Greenberg@3mail.3com.com (02/22/91)

In one of my past lives, I did data entry for the Mastercard (oops, I
mean Master Charge) operation of a major New York Bank.  (Chemical
Bank.)  Since the subject of payment processing has come up, I thought
I'd describe the payment processing operation, and how we tried to be
sure that everybody got the right payment credited to their account.

Remember that in a bank, everything must balance to the penny.  

Payments were received in a mailroom and the envelopes were oriented
by means of the stripes printed on the envelope edges.  The envelopes
were opened by machine and the check and billhead removed.  The checks
and billheads were separated into two piles and, when about one
hundred transactions were accumulated, the piles were rubberbanded
together.  If a check came in without a payment ticket, one was
written, assuming that the account number was on the check.  If not,
the check went to some sort of exception processing.  If the ticket
came in without a check, the transaction took a left turn there too.

Next the batch went to the encoding machines.  These behemoths would
take a stack of checks and show them to the operator one by one.  The
operator would enter (ten-key) the amount, which would be encoded
below the signature line.  The amount was also printed on a tape, and
when the batch was done, the total amount encoded was printed on the
bottom of the tape.  This total became the batch total and the magic
number for the batch.

Remember that everything must balance.  The encoding department
totalled ALL the payment batches, which were subtracted from the
totals of all the charge batches (another article, maybe) and thus
made part of the whole days business, which also had to balance before
it could be released for posting.

Next the payments went to Data Entry.  The process was this: Open a
batch on the terminal by providing the batch number and the total
(generated from the encoding procedure.)  Now key the account numbers
and amounts into the terminals, taken from the billheads.  This is why
you write the amount paid on the billhead.  Note that nobody has
totalled the billheads yet.

Once the billheads were entered, the terminal would present the batch
total (from the checks) and the transaction total (from the
billheads.)  If they matched, you were "IN BALANCE", you released the
batch and went on to the next one.  If not, they were "OUTA BALANCE"
(really!) and you had to prove them.

Proving the transactions involved comparing the entered amounts
(displayable on the screen) with the encoding tape.  Several error
possibilities present themselves.  A keying error by the data entry
operator, a keying error by the encoding operator, or a billhead that
carried an amount different from the check.  Once the transaction(s)
were proved the batch would balance, and you would release the batch
and go on to the next one. If you couldn't prove the batch in about
ten minutes, you would hold the batch in the computer, and pass it to
Sara.  Sara had the eyes of an eagle or a hawk and could find
anything.

And that, friends, is how your payment got onto your Master Charge, back 
in 1975.  


edg

PS:  Trivia:  Who remembers Unicard?  What banks pushed it?  What did it 
grow into?  What was the logo?  How about the jingle?


Ed_Greenberg@HQ.3Mail.3Com.COM

roy@alanine.phri.nyu.edu (Roy Smith) (02/25/91)

> If you couldn't prove the batch in about ten minutes, you would hold the
> batch in the computer, and pass it to Sara.  Sara had the eyes of an
> eagle or a hawk and could find anything.

	I remember taking a tour of a local NJBell plant in the early
70's.  I remember watching them keypunch the incoming bill payments.
I don't remember the whole deal, but I do remember a machine which
looked basically like a 029 keypunch (was it a 129?) but instead of
punching, it just did comparisons.  You put into the feed hopper a
deck of cards already punched by somebody else.  You then proceeded to
repunch the same data.  If any keystroke you made didn't match what
was already on the card, a light lit up (or something like that).

	I also remember the gazillion-channel paper billing tapes
generated by the switches.  But, the neatest thing I remember was the
automatic envelope stuffing machines.  After they were stuffed, they
were sealed and run through a postage meter (with some sort of gate to
throw out the overweight ones to get extra postage).  My devious
twelve year old mind had visions at the time of pushing all the levers
on the postage meter to nine and putting $99.99 of postage on each
envelope (I confess, I confess!).

> PS:  Trivia:  Who remembers Unicard?  What banks pushed it?  What did it 
> grow into?  What was the logo?  How about the jingle?

	Isn't Unicard what became Mastercharge?  I remember when it came out
in, oh, must have been around 1968 or so.  Don't remember any details.


Roy Smith, Public Health Research Institute
455 First Avenue, New York, NY 10016
roy@alanine.phri.nyu.edu -OR- {att,cmcl2,rutgers,hombre}!phri!roy