Financial Process Exchange (FPX)  
   
  The Financial Process Exchange (FPX) leverages on the bank’s Internet Banking services to provide on-line assurance of payments and purchases of goods and services. For both customers and merchants, it facilitates payment and collection and provides an efficient and cost effective settlement mechanism via the internet. It also provides a complete end-to-end business transaction, resourceful payment records, simplifies reconciliation and reduces risks of fund movements between established financial institutions and companies.

What is Camtech's role in FPX?

In 2003, Camtech Asia IT & T Sdn Bhd was selected to participate in the Bank Negara Malaysia-endorsed Financial Process Exchange (FPX) / National Internet Payment Gateway (NIPG) project with Malaysian Electronic Payment Systems (MEPS) for provision of direct debit payment for the business-to-business (B2B) market via the internet.

Today, Camtech Asia is the:
 Technology Solutions Provider for FPX services - Developer and owner of all
   Intellectual Properties (IPs) and Source Codes for the software application
   that manage and control the entire FPX service operations.
 Equity partner with MEPS under a JV company, FPX Gateway Sdn Bhd which
   is the legal entity as the operator of the services.

What are the benefits of FPX?

For the Buyer / Payer
• Convenient payment at any time and from any location
• Saves time traveling and eliminate cheque and cash payments
• Immediate confirmation and notification of payment status
• Able to make transactions with a wider range of retailers and merchants

For the Seller / Payee
• Direct credit of sale proceeds into Seller’s account
• Guaranteed payment by Buyer’s bank thus eliminating cheque returns or
   charge back in credit cards
• Immediate confirmation and notification of payment receipts
• Able to reach as much consumers / buyers from the participating banks

For the Corporation
• Operational efficiencies:
   - Enhances automation of business processes and straight-through      processing
   - Minimizes manual process in payment reconciliation
• Better management, monitoring and controlling of working capital through:
   - Improved timing and knowledge of cash-flows
   - Access to innovate e-financing tools
   - Security and reliability, regardless of banking relationships and geographic
     boundaries

  
   
  FPX Payment and Collection Service Models  
 
Example of Payment Model
Click on ‘FPX’ icon within the merchant’s web page
Choose preferred bank for debiting purposes

Direct customer to the bank’s Internet Banking website to login User ID and Password
Purchase value will be debited from the customer’s account and credited to the merchant’s account
Customer and merchant receives notification confirming transaction
 
Example of Collection Model
Customer to complete the FPX collection form to authorize the merchant to debit from his/her account for the agreed amount
The merchant will then notify the customer’s bank to deduct the said amount

The same amount will then be credited to the merchant’s account
  The collection Model is ideal for bulk collection such as premium collection for insurance or unit trusts

 
  Payment & Debit Transaction Matrix  
 
From / To
Business
Government
Customer
Business
• Bill payments
• Payment to
   Suppliers,
   Vendors
• Payment for
   services
• Tax payments
• Payment for
   Government
   Services
• License renewals
• EPF payments
• Dividends
• Warrant
   payments
• Stockbroking
   payments
Government
• Bill payments
• Payment to
   Suppliers,
   Vendors
• Payment for
   services
• Intra
   Government
   Agency
   payments
• Auto Tax
   payments
Customer
• Bill payments
• Insurance
   premiums
• Share/Unit Trust
   purchases
• License renewals
• Government
   e-Services
website
 

 


What are the benefits of using FPX?

• The user can effect payment at any time and anywhere via direct debiting of
   current or savings account
• The user can reach a wider merchant base when linked to FPX

What are the tangible benefits of using FPX Payment Services?

• Convenience to both the Payer and Payee as payment and collection
   effected immediately anywhere in the world
• Minimal paperwork required for confirmation of payment transaction as
   details are available for your records
• Transaction is secured as it is verified by the bank and the FPX processing
   system
• Huge savings in manpower and operational cost resulting to the increase in
   productivity and efficiency
• Security is improved as the need to visit banks carrying cash for deposits
   and payments are eliminated
 
Which are the participating banks for FPX?
Bank Islam
CIMB
Maybank
Public Bank
 RHB Bank
Citibank
Deutsche Bank
Hong Leong Bank 		HSBC Bank
OCBC Bank
Standard Chartered Bank
The remaining banks; AmBank, Bank Muamalat and Perwira Affin Bank are upgrading their internet banking infrastructures before embarking on the FPX program.

Is registration needed for users before making payment with FPX?
No registration is required with FPX. However, it may be necessary for you to register with FPX depending on the merchant’s requirement.

Is registration needed for merchants to receive payment and sales proceeds?
Yes, registration is required with any of the FPX participating banks, allowing FPX merchants direct credit of sales proceeds into their accounts.  

Which platform must the merchant’s web server use?
FPX services can run on any platform.

Is there any additional hardware or software to accept payments via FPX?
For secure transactions of e-payment, a “seller plug-in” security software is installed at the merchant’s web server.

Why should a business accept FPX as another payment option channel?
FPX allows to capture a wider customer base particularly non-credit cardholders. Other benefits would include real-time online payment and confirmation upon successful transaction which reduces your reconciliation requirements. There is no need to maintain accounts with multiple banks.

Are there any charges for payments via FPX?
It depends on the Internet Banking subscription terms and conditions as well as the merchant’s internet payment services terms and conditions with the bank.

How can we identify a merchant that accepts payment with FPX?
The merchant’s website will display the FPX logo at their website under the payment page for payment options mode.


Can we not use FPX?
1. All companies in Malaysia are expected to be FPX enabled for electronic
    payments by Year 2010 as announced by the Government.
2. Payment to the Government and related institutions will be made
    mandatory via FPX in the near future.
3. Specific B2B and B2C transactions will be compulsory and transacted via
    the FPX payment services eg. MASKargo has made it mandatory for their
    Freight Forwarding Agents in Malaysia to use FPX service as the accepted
    mode of payment.

Why use FPX now and not nearing the Year 2010?
1. Enjoy immediate operational savings and conveniences.
2. Avoid paying higher fees to banks whilst using the FPX by negotiating terms
    and conditions now.
3. Obviate last minute rush to enable FPX transactions and paying higher cost
    of implementation later.
4. Government or Bank Negara's policies may make it necessary to conduct
    electronic payments earlier but companies may face with implementation
    problems when everyone wants to be FPX enabled at the same time.

How do I seek advice and consultation on FPX?
For advice and consultation on FPX, please send your request by e-mail to inquiries@camtech.com.my
 


 
Payment Solutions
 
 
 
 
 
Copyright 2007 Camtech Asia Sdn Bhd.
Suite D-09-01, 9th Floor Block D, Plaza Mont Kiara. 2 Jalan Kiara, Mont Kiara. 50480, Kuala Lumpur. Tel: +603 6201 8909