ACH

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ACH Payments are an electronic method for transferring funds directly between financial institutions. Unlike a check, an ACH transaction may be either a debit or credit. Clearing is provided electronically rather than through the physical movement of checks or cash. Payment processors like Fidelity Payment Services provide education, training, and a variety of support services for financial institutions and affiliated companies while also helping to create consumer awareness.

The ACH process
In accordance with the rules and regulations of ACH, no financial institution may simply issue an ACH transaction (whether it be debit or credit) towards an account without prior authorization from the account holder (known as the Receiver in ACH terminology).

An ACH entry starts with a Receiver authorizing an Originator to issue ACH debit or credit to an account. An Originator can be a person or a company (such as the gas company, a local cable company, or one's employer). Depending on the ACH transaction, the Originator must receive written (ARC, POP, PPD), verbal (TEL), or electronic (WEB) authorization from the Receiver. Written authorization constitutes a signed form giving consent on the amount, date, or even frequency of the transaction. Verbal authorization needs to be either audio recorded or the "Originator" must send a receipt of the transaction details before or on the date of the transaction. A WEB authorization must include a customer reading the terms of the agreement and typing or selecting some form of an "I agree" statement.

Once authorization is acquired, the Originator then creates an ACH entry to be given to an Originating Depository Financial Institution (ODFI), which can be any financial institution that does ACH origination. This ACH entry is then sent to an ACH Operator (usually the Fed) and is passed on to the Receiving Depository Financial Institution (RDFI), where the Receiver's account is issued either a credit or debit, depending on the ACH transaction.

The RDFI may, however, reject the ACH transaction and return it to the ODFI if, for example, the account had insufficient funds or the account holder indicated that the transaction was unauthorized. An RDFI has a prescribed amount of time in which to perform returns, ranging from 2 to 60 days from the receipt of the ACH transaction. However, the majority of returned transactions are completed within 24 hours from midnight of the day the RDFI receives the transaction.

An ODFI receiving a return of an ACH entry may re-present the ACH entry two more times (three attempts is the maximum allowed) for settlement. Again, the RDFI may reject the transaction. After which, the ODFI may no longer represent the transaction via ACH.

INTRODUCING MERCHANT CAPTURE – YOUR CHECK IMAGE EXCHANGE

Merchant Capture is like bringing the bank’s teller window to your business!

No more driving to the bank to make a deposit. Capture money orders, consumer checks, cashier’s checks and corporate checks electronically with a secure, accountable check processing system.

POWERFUL BUT SIMPLE TECHNOLOGY ADDS UP TO BIG SAVINGS

Capturing checks electronically is the way to go. Just ten years ago, no checks were being handled electronically. In 2009, more than 2 billion checks were scanned and safely processed electronically.
Interested in cost savings? Banking fees and float can add up fast with minimum balances. Daily trips to the bank can also eat into your time and profits.

Now you can centralize your check processing in one place and one bank.
No more filling out deposit slips by hand.

YOUR ONE-STOP SOLUTION

Merchant Capture is a one-stop solution that includes electronic payment processing, online reporting and risk management services.
It doesn’t matter if your customers find you in person, by phone, through the mail or over the Internet, Merchant Capture delivers a one-stop solution for all of your check and credit card processing needs.

YOUR MERCHANT CAPTURE BENEFITS

With Merchant Capture, you can now scan and image your checks, eliminating a trip to your financial institution. Consider the possibilities:

• Receive funds faster
• Eliminate the need to take checks to your bank
• Enjoy later, daily deposit deadlines
• Offers speed, savings, convenience and security
• Find out about returned items quicker
• No need to purchase, install or maintain software
• Improves efficiency and profitability

IT’S A SIMPLE, FAST FOUR–STEP PROCESS:

1. Log onto the Internet to our secure Merchant Capture site.
2. Feed your check into this inexpensive scanner (optional step).
3. Enter the amount of the check
4. Hit “submit.”

THAT’S IT!

Each month your business is billed for transactions and a monthly access fee. It’s that simple!