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A credit interchange is a group of companies, often in the same industry, that join together to share credit information on mutual customers. Credit groups are usually monitored/managed by an outside party, like ABC-Amega, with the expertise to ensure the information shared is factual and the group does not run afoul of antitrust regulations.
In most credit groups, members regularly supply A/R ledger and other credit experience to the group’s database. This information is compiled into credit reports available to the members. Groups hold regular meetings to review customer accounts, network and provide educational programs. ABC-Amega's credit interchanges often have their own credit group web sites and newsletters.
It is legal in the United States for companies to share factual accounts receivable credit history. Credit groups, however, must be monitored by an outside party to make sure the information shared does not run afoul of antitrust regulations. ABC-Amega reviews all data that goes into its credit interchange system, including urgent customer information. Subjective statements are removed. If the legality of the credit information is in question, it is not included in the database. Credit group meetings are also monitored by an ABC-Amega staff member who is fully trained and versed in the legal ramifications of such meetings.
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Credit groups share only factual credit information. The specifics depend on the group, but generally: aged A/R ledger experience; high credit extended; urgent customer information like NSF/RTM checks, accounts placed for collection, bankruptcies, changes of ownership; and factual comments on the customer’s credit standing.
ABC-Amega credit group members supply aged experience in two ways: (1) on individual customers through a simple online form; (2) on their entire credit portfolio via computer tape or disk. ABC-Amega IT personnel review tape/disk submissions for completeness and then upload them to the database. The raw data is then compiled into comprehensive credit reports via our web-based credit interchange system.
The information in a credit group’s database belongs to the members of the group. Access to the credit interchange system is via username and password. Only current group members and ABC-Amega personnel have access. ABC-Amega does not have the right to use the credit information for any purposes other than those of the credit group. ABC-Amega cannot and does not sell it to anyone outside the group.
No special software is required to access ABC-Amega’s credit interchange database. It is accessible via a secure web site with a standard Internet browser like Netscape Navigator, Internet Explorer, or the equivalent.
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ABC-Amega provides credit reports on individual locations as well as connected locations (related branches or subsidiaries). Reports contain:
- Detailed lines of accounts receivable experience by location and reporting member, with first sale, last sale, high credit, total owing, past due by age bucket, total past due, days slow.
- Connected customers by name and location.
- Flash notices (urgent customer information).
- Summarized lines of a/r experience for all connected locations by reporting member.
- Graphs depicting the average days slow and average percentage past due for the last 12 months.
The information on ABC-Amega credit interchange reports is the most up-to-date available. We update A/R experience daily as member information is received. Urgent information (Flash notices) are posted every day by the members themselves.
Flash notices are real-time postings of urgent credit-related information, like NSF/RTM checks, bankruptcies, placements for collections, changes in ownership etc. Members post Flash notices via a simple web form with drop down menus. Members can access all Flash notices or only those pertaining to their customers. They can be reviewed online or saved to your local PC.
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