Preface

Recently, financial institutions have gotten considerable progresses on operation automation , for which keeping controls of updated data is the highly competitive tool in the every-changing environment . On the other hand, EDI could help on competence of entrepreneur on its business efficiency. Currently, parts of processes apply EDI with UN/EDIFACT (electronic data interchange for administration commerce and transport) standard, including automatic process for Customs formalities through Trade-Van, distribution industries promoted by Commerce Department, electronic ordering in electronic industries, automatic process for mobile and manufacture industries promoted by Industry Bureau, and processes on environmental, library, and harbor management affairs still in planning, bringing non-paper EDI of high quality to domestic industries. EDI trading will need to coordinate with capital flow, which leads related institutes to request financial EDI process targeting on promoting finance efficiency of entrepreneur.

EDI (Electronic Data Interchange)

EDI is usually specified as the business documents in the standardized form transferred in an electronic way amongst computers in business without any human involvement.

Financial EDI (FEDI)

FEDI means a variety of banking business, including money collection, payment, or financial services is transferred in forms of international standard through computer links. Ministry of Treasury organized the Financial Information System Center at the end of 1994 (currently called "Financial Information Service Co. Ltd."), the responsible institute for domestic FEDI.

Safety

The services could secure safety of electronic transferring through most advanced IC- card RSA, as well as multi-controls of electronic signature and password.

CA Service

A CA(called Certification Authority, CA) is built for approvals of public key certificate information, used for subject's ID confirmation when non-symmetrical encrypting and decrypting of RSA. CA is the intermediate institute of public trustworthy by trading parties for approval and management of subject's key certificate, including the following function.

• Receive subject's registration and ID confirmation
• Approve and issue subject's certificate
• Provide related information with subject's certificate

Currently, domestic financial CA institutes include:

• Trade-Van: for clients connecting with Trade-Van
• Taiwan-CA.com Inc: for clients connecting with other networks

EDI in Bank of Taiwan

Provide on-line payment for Customs duties on Nov. 30th of 1994.

Provide "EDI Electronic Transfer" service since Jan 30th of 1997.

1. Payer sends "Payment Order Details" message from his/her Turn-key system through the value-added net and the e-bank to the paying bank.
2. The paying bank sends "Debit confirmed message to the payer
3. The paying bank sends "Inter-Bank Debit Details" to common nets and inter-bank accounting system by e-banks.
4. Inter-bank accounting system sends "Inter-Bank Credit Advice" for the receiving bank
5. The receiving bank sends "Credit Advice" for the payee depending on needs.

Work Flow

1. Bank of Taiwan will assist clients' application for EDI value-added net service
2. EDI value-added net service will help clients' registration and approval from CA
3. Computer equipment
   1. (1) Personal Computer
   2. (2) Modem
   3. (3) Safety control system (IC card reader)
4. Clients contract for "EDI Transfer Service" with Bank of Taiwan, and fill out form of "Client safety certificate commonly used by electronic banks and net basic data" for bank's data building according to requests from CA and EDI value-added net.
5. Clients start "Payment Ordering Details" through value-added nets, and Computer Center of Bank of Taiwan transfers the "paid amount" (and related fees) from the "payer's account" and inform payees with "Debit Confirmed" and proceed with the following process:
   1. (1) Automatic Transfer
      Send "Credit Advice " to the payee with message, fax, or even non-informing depending on its selection of money-in notices.
      
   2. (2) Inter-Bank Transfer-Receiving banks participate in FEDI
      Send "Inter-Bank Transfer Details" message to FEDI value-added nets
      
   3. (3) Inter-Bank Transfer-Receiving banks do not participate in FEDI
      Send remittance to Financial Information Services Co. Ltd. through inter-bank remittance.
      

EDI Inter-bank remittance

Following the "EDI Electronic Transfer", entrepreneurs and banks save manpower and time costs on paycheck issuing, mailing, and account checking through the transfer. However,

1. some payment receiving banks still never participate in "FEDI Inter-Bank Payment System" of Financial Information Services Co. Ltd. ,and
2. most receiver entrepreneurs trading with the payer company have no EDI system and cannot receive the EDI money-in message from banks with "FEDI Inter-Bank Payment System".

Entrepreneurs unable to apply the overall-electronic payment process will decrease their participation willingness, and targeting on which Bank of Taiwan has combined EDI and current "Inter-bank Remittance" to meet completed payment demands from clients and to considerably enhance EDI payment efficiency by clients.

The pre-said process could provide clients with the below benefits

1. Reduce transportation costs to banks
2. Save waiting time in banks
3. Rapid and safe money collection, payment, and transfer
4. Prompt control of account status
5. Prompt and flexible capital distribution in accounts
6. Increase efficiency of cashier and financial staffs

Clients' Turn-key system and EDI value-added nets

1. Currently, the EDI value-added nets could provide Turn-key Systems for clients include:
   1. (1) Entrepreneur Bank Net of Bank of Taiwan: built by Bank of Taiwan
   2. (2) Trade-Van: built by Trade-Van Co. Ltd.
2. Related Institutes
   • Bank of Taiwan
     • Web Site https://www.bot.com.tw
     • E-mail of Principal Office service@mail.bot.com.tw
     • E-mail of electronic banking service sunny@mail.bot.com.tw
     • Number of electronic banking service (02)23493960, (02)23493961
   • Financial Information Services Co. Ltd.
     • Web Site http://www.fisc.com.tw/
     • Service number: (02)23819364 ext 290,295
   • Taiwan-CA.com Inc (CA)
     • Web Site http://www.taica.com.tw/
     • Service number: (02)23708886 ext 35,36
   • Trade-Van Co. Ltd.
     • Web Site https://www.tradevan.com.tw/
     • Service number: 080-082188

Characteristics of EDI Transfer by Bank of Taiwan

1. Able to pre-assign or not assign (possibly transferring to any) accounts for transferring to
2. Able transfer to any bank account through inter-bank process
3. Able to pre- assign the daily limits for crediting
4. Able to pre-assign the limits for debiting
5. Automatically inform clients with money returning by EDI transmission to Inter-bank remittance of Bank of Taiwan