The ACH The ACH is a network of regional associations, inter-bank associations, and private-sector processors. ACH payments are processed and settled electronically, thereby increasing reliability, efficiency and cost effectiveness. ACH payments are generally settled in one day or greater. participant The participant is the individual or organization that will be affected by the ACH transaction (payee or draftee). An ACH transaction may debit or credit a participant's account, e.g., a payroll deposit or a payment for services rendered. The participant information is referenced by the ACH transaction. is the individual or organization that will be affected by the ACH transaction An ACH transaction is an entry within the NACHA file that indicates how the participant's account should be affected. The transaction includes a reference to the participant, how the account is affected, and the amount.. The participant’s account may be debited or credited by an ACH transaction (e.g., a payroll deposit or a payment for services rendered).
Each participant entry contains the participant’s financial institution a bank, thrift, or credit union information and the transaction type – that is, the type of account and whether it will be debited or credited. This information is used to create the ACH transaction that is added to a batch An ACH batch consists of a template The template contains the essential characteristics of the ACH batch, such as the name of the template, the type (class code) of ACH transmission (CCD The ACH payment format used for concentration of funds between or within companies. A single 94-character record contains the standard entry class indicating the type of transaction, routing and transit numbers of the ODFI and RDFI and the originator and receiver account numbers. CCD is the only corporate ACH format that does not have space for additional addenda information, but it does contain space for a reference number. or PPD Prearranged Payment or Deposit, the ACH payment format by which consumers may authorize credits or debits to their accounts by a company or financial institution. These are normally recurring payments in fixed amounts.), and the offset account. Although AXIS Cash Management only lists CCD & PPD, the application will create the appropriate CCD+/PPD+ ACH Batch if a participant with an addendum is associated with this batch. (see below) and a collection of transactions having the same purpose and effective date to be performed, and may also include addenda information..
A participant may have several entries, each one using that participant’s unique ID but indicating a different account or transaction type. If the participant has multiple accounts, or requests more than one transaction type (e.g., a debit and credit on the same account or debits to two separate accounts), a participant entry must be created for each account or transaction.
Examples
· If an employee divides his paycheck between checking and savings accounts, two separate participant entries must be created. The first entry would specify the savings account number, the "savings deposit" transaction type, and the amount. The second entry would specify the checking account number, the "checking deposit" transaction type, and the amount.
· If an employee divides her paycheck into two separate financial institutions, two separate participant entries must be created. The first entry would specify the financial institution, the account number, the savings or checking deposit transaction type, and the amount. The second entry would specify the other financial institution, the account number, the savings or checking deposit transaction type, and the amount.
Prenote Optional, zero-dollar entries that are sent to the ACH System and then the receiving financial institution to verify instructions prior to sending live entries. is a special testing mechanism for use when setting up a new ACH participant. It comes through as a special transaction type with a dollar value of 0; the idea is that this transaction will generate an ACH exception if unsuccessful. If successful, there is no adverse effect and both you and your financial institution can be confident that the setup is correct.
To display the Participant Maintenance screen:
· Select the ACH option on the Funds Transfer menu and then click Participant Maintenance. The Participant Maintenance screen appears.
In the Add Participants section of the screen, enter the participant ID in the first available Participant ID field.
The participant ID is a unique number assigned to each participant that is used to search for, and identify, the participant on the various ACH screens. An example of a participant ID is an employee’s social security number or a business’ tax ID number.
Enter the participant name in the Participant Name field.
Enter the participant’s financial institution information in the Route Num and Account Num fields.
Enter the transaction amount in the Amount field. This amount will display as the initial setting for this participant whenever a batch is initiated and may be changed by the end user an employee of the customer a bank's customer, a thrift's customer, or a credit union's member. that is given access to application by the company administrator the customer, or a person assigned by the customer, who will have administration responsibilities in the Commercial Customer Platform of the application. or a user administrator. before the ACH file is created.
Select a transaction type from the Transaction Type drop-down list. This indicates how the participant’s account will be affected by the ACH transaction.
(Optional) Check the Prenote box if you want this participant to be set as a prenote transaction when first added to a batch. (The system will switch off the Prenote setting automatically after the batch is initiated.)
(Optional) Fill in a message in the Addenda field. This message will be included with the transaction when the ACH file is created.
(Optional) Set an Ending Date (in mm/dd/yyyy format) if the participant definition is intended to be used only for a fixed period of time.
Note: Up to three participants may be added at the same time; each row represents one participant’s complete information. To add another participant, repeat steps 1 through 8.
10. Click the Add button to save the participant information.
The Participant Maintenance option allows the end user to update a participant’s information. All of the participant information can be changed.
Participant entries are accessed one of two ways:
In the Participant ID drop-down list, type a single letter or digit to access the corresponding region in the Participant ID list (e.g., an entry of "1" would display the Participant IDs that start with the number "1").
Select the desired Participant ID from the list.
In the Participant ID Search field, enter the participant ID and click the Search button. (Note that the search is case-sensitive.) The Search feature selects the first matching record and populates the fields on the page, just as if you had selected the record from the Participant ID drop-down list.
Use one of the techniques described above to display the desired participant record in the Update Participant section of the screen.
Make any necessary changes. Click the Reset button at any time if you need to restore all of the fields to their previously saved values.
Click the Update button.
The Participant Maintenance option allows the end user to delete a participant’s information.
Use the techniques described above to display the desired participant record.
Click the Delete button. A dialog box appears, prompting for confirmation.
Click the OK button to perform the delete, or click the Cancel button to leave the record unchanged.