The BPAY Customer Reference Number (CRN) Check Digit Rule This is the algorithm used to calculate the check digit within the Customer Reference Number (CRN) and is mandatory* for all

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Copyright 2015 BPAY Group / Confidential

The BPAY Customer Reference Number (CRN)

August 2015

Agenda

Mobile Phone Numbers and ABN as CRNs

2

Benefits of using the CRN 4

How do you create CRNs? 5

What is the Customer Reference Number (CRN)?

1

• Key Terminology

• The Check Digit

• How the CRN is used and works

Variable and Intelligent CRN 3

Copyright 2015 BPAY Group / August 2015 / Confidential 2

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What is the Customer Reference Number (CRN)?


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Key Terminology

Customer Reference Number (CRN) A unique number allocated to a customer’s invoice identifying the customer and/or the account to be paid

Biller Code A unique BPAY number assigned to each specific biller by their Biller Institution

Variable CRN Enables Billers to track payments relating to specific periods, bills, invoices or transactions and changes from bill to bill

Check Digit Contained in the CRN is a number called the Check Digit • It’s used to ensure that the CRN is entered

correctly and is calculated using the CRN itself.

• Usually found at the end, it can be located anywhere within the CRN

• This depends on the Check Digit Rule applied

Intelligent CRN Enables Billers to fix the following as part of the CRN:

• The Amount and Expiry Date of the BPAY payment or

• The Expiry date by which the BPAY payment has to be made (it will not be accepted if made after that date) or

• The Amount of the BPAY Payment (it will not be accepted if it is less than the required amount)


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Key Terminology

A Check Digit Rule This is the algorithm used to calculate the check digit within the Customer Reference Number (CRN) and is mandatory* for all Billers to use as part of their CRN generation process.

Customised Check Digit Rules are also used by Billers to eliminate payment errors

Validation Rule A validation rule is a customised rule used to further validate a Customer Reference Number, in addition to the Check Digit rule, for specific Biller requirements:

• For example: a Biller may want to exclude the first 5 digits of a CRN from the Check Digit calculation. This is not mandatory, these rules give Billers additional flexibility in the sophistication of their CRNs

• Validation Rules are also used by Billers to eliminate Payment Errors and to limit Fraud on particular Biller Codes e.g. Credit Card Biller Codes

Validation Routines Contain new and updated Check Digit and Validation rules. These are maintained by BPAY and distributed up to 3 times per year as part of the Validation Routines process. These can be downloaded from the BPAY Operations Portal

* Check digit not required where mobile numbers are used as CRNs, see section Mobile Numbers as CRNs


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What is a Customer Reference Number?

• The Customer Reference Number (CRN) enables easy and accurate account reconciliation by Billers

• It is generated by the Biller

• The CRN is located on the customer’s bill, next to the BPAY logo and below the Biller Code


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The Check Digit

• The Check Digit is calculated from the Customer Reference Number itself and is used for error detection to ensure that the customer enters the CRN correctly

• Every BPAY CRN contains a Check Digit*, usually at the end of the number

- The Check Digit can be generated using an algorithm (Check Digit Rule) for example: MOD10V01 or MOD10V05

* Check digit not required for CRNs generated using a mobile number, see section Mobile Phone Numbers as CRNs


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How the CRN is used

The CRN is generated by each Biller, it relates to the customer’s account number, invoice number or in some cases mobile phone number or ABN • It is validated by the Payer Institution using the *Check Digit rule

and, if required, some validation rules • The CRN is validated at point of BPAY payment. • The validation details are provided to each institution on a daily

basis via the Biller Master File

A Biller can create specific validation requirements within the CRN • For example: when a customer is making a BPAY payment, a Biller

may require the first six digits of the CRN to match the first six digits of the customer’s account number

The process of checking payments is fully automated minimising Mistaken Payments

The CRN is one of the reasons why the reconciliation of a BPAY payment is so simple and accurate



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How the CRN is used

The CRN is validated within Internet or Mobile Banking when the customer submits a Payment Instruction

It is validated against the Check Digit and Validation Rules defined in the Biller Master File at the customer’s Payer Institution • Length must be between 2 and 20 digits including the check digit

- The Biller can specify how many digits a CRN must contain - It can be multiple lengths on one Biller code

• It must include a check digit* • It must be Numeric only with no spaces • There are a variety of check digit algorithms, one of the most

popular is MOD10V01 • The Biller can also specify that specific digits must be in certain

positions of the CRN, such as the CRN must start with a 2, 3 or 4 • This function is known as a Fixed Digit within the Biller Set

Up. Please Note: this can only be used if all CRNs have the same digit in that position.



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Mobile Numbers as CRNs


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Mobile Phone Numbers as CRNs

SME benefits: • It is a number the SME already has • It can be easily reconciled to their customer • It does not require creation of a check digit • It enables simple contact with the Payer via the mobile

number provided

This functionality is enabled using the check digit rule PREPAYMOBL • No check digit is required • CRNs are validated to start with ‘04’ and be a length of

10 digits • This routine is already set-up and available for use by

Billers and Payer Institutions validating BPAY Payments • The SME will need to be set-up as a Variable CRN Biller

For SMEs who do not have account or invoice numbers we enable them to use their customer’s mobile number as their CRN

• To qualify for this option, the SME must have: • Less than 200 BPAY payments per month • Not have any other numbers that can be used for

generating CRNs


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ABN (Australian Business Number) as CRNs


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ABN as CRNs

BPAY has enabled the use of Australian Business Numbers (ABNs) as BPAY Customer Reference Numbers (CRNs). • The ABN issued by ASIC and the ATO contains a check digit so it

can be used as a BPAY CRN • BPAY has now developed specialised validation that can check that

a valid ABN formatted number has been used as a BPAY CRN

Use of the ABN also provides benefits in Superannuation payments • Clearing houses and payroll providers can use their ABN as their

CRN when making super contributions using BPAY

For Business to Business payments, Billers can now choose to use their customer’s ABN as the BPAY CRN on their customer’s bill or invoice • Removes the need for the biller to define a new type of customer

identifier • They are using a pre-existing number that they have to

capture for their Tax records • Using the ABN as a CRN means the biller receiving the payment

can also check that they have correctly captured the business’s ABN


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Variable & intelligent CRN (iCRN)


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What is a Variable CRN?

Variable CRN enables the biller to track payments relating to specific periods, bills, invoices or transactions. For example: • TNT tracking a parcel with the payment rather than the individual

who receives it, or • Qantas accepting a BPAY payment for a specific itinerary booked

over the internet

A number of BPAY billers have customer reference numbers that are variable, that is they change with each bill

Variable CRN ensures that the CRN is not pre-populated within Internet or Mobile banking, prompting the customer to enter the correct CRN each time

Variable CRN is a pre-requisite for iCRN • This a requirement as the iCRN would change from bill to bill


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What is an Intelligent CRN? (iCRN)

Allows Billers to fix: • The amount and expiry date of the BPAY payment or • The expiry date of the BPAY payment only or • The amount of the BPAY payment only

Standard CRN Intelligent CRN


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Why iCRN?

For Billers who require BPAY Payments to be made for Legal and/or compliance reasons

Payments by a specific date

Payment of a specific amount

Both of the Above

Billers who would use this capability include:

Vehicle Registration and Licensing

Insurance Renewals

Government Permits and Licences

Infringements processing – Traffic and Parking

Justice and Courts


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Key iCRN Features

iCRNs have the same length (20) and format (numeric) of standard CRNs

The variable CRN flag in the Biller Master File (BMF) should be set to Y to indicate that the CRN will change for each billing cycle – this is done by performing a Biller Update via the BPAY Operations Portal • This is a pre-requisite for iCRN

The only way Billers using intelligent CRN (iCRN) will be identified is by the Check Digit Rule name • There are no other flags or identifiers in Biller Master File

(BMF) • Three new Check Digit rules have been developed to cater for

iCRN, the rules are as follows: - ICRNAMTDTE = Amount and Date - ICRNAMT = Amount only - ICRNDATE = Expiry Date only

Billers may design their own custom iCRN validation routine provided it is within the constraints of existing iCRN functionality • There will be no Payer Institution changes required


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CRN Benefits


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CRN Benefits Summary

Feature Benefit

Check Digit reduces customer input errors Ensures user accuracy so that payments can be automatically allocated to the correct account

Unique reference number that identifies the account to be paid Enables easy account reconciliation

The option for SME’s to use customer mobile phone number as the customer’s CRN

The option for businesses to use customer’s ABN as their CRN

Encourages greater BPAY take-up by SME’s for their customers and enables them to offer BPAY using a number they already have that can be easily reconciled with their customer

ABN as CRN utilises a number the customer already has

Variable CRN – Ensures the customers enter the CRN each time they make a BPAY Payment within Internet Banking

Gives the Biller flexibility to track and manage payments more effectively. These payments could relate to a specific period, bill, invoice or transaction rather than a customer ensuring accurate allocation of funds

Intelligent CRN – As part of the CRN, Billers can fix:

• The amount and expiry date of the BPAY payment; • The expiry date of the BPAY payment only; • The amount of the BPAY payment only

Provides a more flexible CRN enabling usage by a wider range of Billers who require this functionality for legal and/or compliance reasons


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How to Create CRNs


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Creating CRNs via the BPAY Operations Portal

• The BPAY Operations Portal includes the ability for Scheme Member staff to create CRNs using the CRN Tools option from the menu:

– The stand-alone version of the CRN Tool will still be available, if required – The CRN Tool is automatically updated by BPAY with each new release of Validation

Routines – Please see the Operations Portal CRN Tool Mini User Guide and BPAY Training for

further information on this feature

The BPAY Training Portal is a ‘one stop shop’ to access the BPAY Training: • Accessible from the Member area on www.bpay.com.au

• Obtain your username/password from your BPAY Product Manager

• Provides Product, Sales and Operations training

Where to get help and more information

All materials can be run within the portal or downloaded, including: • Power point presentations • Quick Reference Guides • BPAY Training Tutorials • Sales Training e-learning modules for BPAY View and Master Biller • Operations ‘How To’ Guides • (Step-by-step Guides to all key Operations tasks)

Published by BPAY Pty Ltd ABN 69 079 137 518 (Phone (02) 9646 9222; email: [email protected]). BPAY Payments are offered by over 150 BPAY Payer Institutions. Each BPAY Payer Institution is a Member of the BPAY Scheme - managed by BPAY Pty Ltd. When you use BPAY and/or BPAY View, the BPAY Scheme is paid fees relating to processing costs and BPAY Scheme membership. Contact your financial institution to see if it offers BPAY and/or BPAY View and to get the terms and conditions or Product Disclosure Statement (PDS). This is general advice - before using BPAY and/or BPAY View please review the PDS and consider whether BPAY and/or BPAY View is appropriate for your personal circumstances.

BPAY Technical Operating Procedures (TOPS) • Appendix C

Documents

The BPAY Customer Reference Number (CRN) Check Digit Rule This is the algorithm used to calculate the check digit within the Customer Reference Number (CRN) and is mandatory* for all