Accelerating merchant settlements through integrated access to the Faster Payment System
Allowing AIB Merchant Services' UK retailers to receive payments sooner.
Overview
AIB Merchant Services processes millions of transactions daily, making it one of the largest providers of payments solutions across Ireland, the UK and continental Europe. Their payment network supports all major credit and debit card schemes, enabling businesses to accept payments across multiple channels. Some of the world’s most prominent companies and public sector organisations trust AIBMS to manage their payment processing.
AIBMS wanted to enhance their service offering for UK merchants accepting payments in sterling by improving the settlement process. Their goal was to reduce timelines, giving businesses faster access to funds and improving cash flow.
By partnering with Fire, the tier-one acquirer has successfully launched its service to merchants, resulting in noticeable improvements to settlement times.
The challenge
AIBMS needed a solution to streamline the settlement of card proceeds to UK retailers seeking faster access to their funds. Their existing process involved multiple platforms and manual operations, causing merchants to often wait an extra day to access their earnings. This delay could impact cash flow, particularly for smaller businesses that rely on timely access to funds.
Seeking a partner with local, API-accessible, sterling accounts and Faster Payments capabilities, AIBMS looked for an automated and scalable way to accelerate merchant settlements while maintaining reliability and compliance. The goal was to launch their service to enhance the speed of merchant payouts through the UK’s Faster Payment System, without disrupting core operations.
The solution
Fire worked closely with AIBMS to build an automated Faster Payments integration that processes tens of thousands of daily transactions efficiently.
Each day, Fire receives funding and a payment instruction file from AIBMS to settle merchant payments for that cycle. The system quickly processes payments, verifying transaction amounts and routing funds to merchants. Any discrepancies are flagged in a real-time exception report, ensuring transparency and control throughout the process.
This connector-based system, developed specifically for AIBMS, eliminates manual data entry, reduces reconciliation efforts, and guarantees same-day payments, with immediate transfers between 7:00 AM and midnight on UK business days. It also allowed AIBMS to quickly bring the solution to market by using the same payment files they were already familiar with, minimising disruption.
As a payment services provider regulated in Ireland and authorised in the UK with access to the Faster Payment System (FPS), Fire was the ideal partner for AIBMS. Through this integration, the leading acquirer has successfully launched a faster and more efficient funding solution, enhancing cash flow for thousands of merchants and reinforcing their position as a leader in payments innovation.
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*Independent Sales Organisation
The Results
- Faster merchant settlementsWith the integration to Fire, AIBMS reduced settlement times, from a few days to same-day payments, ensuring businesses receive funds faster and enhancing cash flow for merchants.
- Automated and scalable processingBy automating bulk payment initiation and batch execution, AIBMS enhanced its settlement process, improving efficiency and ensuring greater reliability for high-volume transactions.
- Greater transparency and controlReal-time exception reporting and automated reconciliation provide AIBMS with full visibility over transactions, ensuring smooth operations and timely processing.
- Continuing to maintain regulatory complianceAIBMS not only achieved the results outlined above but also enhanced operational efficiency, all while upholding stringent compliance with PSD2 and other relevant regulatory requirements.
"Working with Fire allowed us to bring a faster settlement solution to our UK merchants quickly and with minimal disruption. The integration was smooth and aligned well with our existing processes, helping us enhance our service while maintaining compliance and control. Their team is responsive, easy to work with, and always ready to jump on a call to provide expert guidance."
Robert Doherty, Director of Product and Scheme Compliance at AIB Merchant Services
Q&A with AIB Merchant Services
- Why did you choose Fire over other providers?
We chose Fire due to its ability to provide a seamless integration with the Faster Payment System, offering a reliable, scalable solution that aligned with our goals of improving settlement times while ensuring complete regulatory compliance.
- How did you find the integration process?
The integration process with Fire was smooth and efficient. The Fire team worked closely with us to develop a tailored solution that minimised disruption and allowed us to launch our Faster Funding service quickly using familiar files and processes.
- How has Fire helped you to better serve your customers?
Fire has enabled us to provide faster, same-day settlements for merchants. The automation of bulk payments, enhanced transparency, and real-time exception reporting have further streamlined our operations and helped us deliver a more efficient service to our customers.
Get in touch with our sales team and start streamlining your payments today.