Automated Clearing House (ACH) Reference Guide

Transcription

1 Automated Clearing House (ACH) Reference Guide

2 Copyright Copyright 2008 by Digital Insight, an Intuit company All rights reserved. The application described in this document is proprietary to Digital Insight, and must be treated on a confidential basis. It is to be used solely in accordance with the provisions of the agreement under which it has been furnished. Reproduction of this document in whole or in part by mechanical, electronic, or any other means must be in accordance with the terms of the agreement under which it was furnished. Information in this publication is subject to change without notice. Although every precaution has been taken in the preparation of this publication, Digital Insight does not offer any warranties or representations, nor does it accept any liabilities with respect to the information contained herein. Trademarks Intuit, Digital Insight, an Intuit company, Digital Insight, Magnet, Magnet Communications, the Magnet Internet Banking Suite, BizBankingWORKS, iportbiz, Magnet Outsource Service and The Internet Business Banking Authority are trademarks and/or service marks of Digital Insight. Other product names mentioned herein are the intellectual property of their respective companies. Publication Information All rights reserved. Printed in the United States of America. Publication Title: Automated Clearing House (ACH) Reference Guide Corporate Information Digital Insight, an Intuit Company 5720 Peachtree Parkway Norcross, Georgia United States of America Telephone (770) Facsimile (770)

3 Table of Contents About This Guide... xiii Audience... xiii Using This Guide...xiv Document Conventions...xiv New in this Release...xv Where to Find More Information...xvi Product Documentation Library...xvi Training Services...xvi Other Services...xvi 1. ACH Overview... 1 Introduction to ACH... 1 What is ACH?... 1 Supported SEC Codes... 1 Cutoff Times... 2 Security Options... 3 Consolidated Payments... 4 Market Segmentation... 5 Batch Templates... 6 Import Files... 7 ACH Batch Process... 7 Proactive Bulletins... 9 Pass-Through Files... 9 Recurring Payments... 9 ACH Services ACH User Interface Page Element Standards Getting Started ACH Setup Tasks for Bank Personnel ACH Setup Tasks for Corporate Administrators ACH Setup Tasks for Corporate Users Copyright 2008 by Digital Insight, an Intuit company iii Table of Contents

4 Menu Interfaces ACH Settings About ACH Settings Relationship to Consolidated Payments Relationship to other ACH Services Service Information ACH Settings Page Fields Buttons ACH Transaction Type Maintenance About Transaction Types Standard Entry Class (SEC) Codes Transaction Type Code Format Addenda Transaction Type Setup Service Information Transaction Type Selection Page Fields Buttons ACH Cutoff and Activation Time Maintenance About Cutoffs Relationship to Consolidated Payments Warehousing Method Holidays and Nonbusiness Days Status Report Service Service Information Cutoff and Activation Time Maintenance Pages ACH Cutoff and Activation Time Selection Page Fields Buttons ACH Cutoff and Activation Time Data Entry Page iv Table of Contents Copyright 2008 by Digital Insight, an Intuit company

5 Multiple Daily Cutoff Times Empty ACH Files Results Fields Buttons ACH Cutoff and Activation Time Report Page Fields ACH Endpoint Maintenance About Endpoints How End Points Work ACH File Format Service Information End Points Pages ACH Host End Point Selection Page Fields Buttons End Point Data Entry Page Fields Buttons End Point Delete Page Fields Buttons ACH Host End Point Report Page Fields ACH Company Maintenance About Company Maintenance ACH Company Examples Transaction Type Codes Offset Accounts ACH Company Setup Service Information Company Maintenance Pages Copyright 2008 by Digital Insight v Table of Contents

6 Company Information Selection Page Fields Buttons Company Information Add Page Fields Buttons ACH Company ID Report Page Fields Transaction Types Page Available Transaction Type Codes Fields Buttons Offset Accounts Page Available Offset Accounts Fields Buttons ACH Customer File Name Maintenance About Customer File Name Maintenance Default File Naming Format ACH Settings Service Information Customer Filename Pages Customer Selection Page Fields Buttons File Name Parameters Page Fields Buttons File Name Report Page Fields Buttons ACH User Permissions vi Table of Contents Copyright 2008 by Digital Insight, an Intuit company

7 About User Permissions Service Information User Permissions Pages Permissions Selection Page Fields Buttons ACH Customer Settings Page Fields Buttons User Overall Limits Page Fields Buttons ACH User Settings Field Buttons Transaction Type Permissions Page Fields Buttons Authorization Limits Page ACH Limits Limits ACH Limit Types Fields Buttons ACH Map Definition About Map Definition ACH Import Map Formats New in Import Map Definition Service Information Map Definition Pages Import Maps Page Duplicate Transactions Rules Copyright 2008 by Digital Insight vii Table of Contents

8 Fields Buttons Add a Map (Delimited) Page Duplicate Transactions Rules Fields...`94 Delimited Format ACH Map Type Buttons Add a Map (Fixed) Page Duplicate Transactions Rules Fields Fixed Format Example Buttons Edit Map Page Fields Buttons Delete Map Page Fields Buttons Map Detail Page Fields Buttons ACH Status Report About ACH Status Report Service Information ACH Status Report Pages ACH Status Report Selection Page Fields Buttons ACH File Summary (Status) Report Page Fields viii Table of Contents Copyright 2008 by Digital Insight, an Intuit company

9 ACH Batch Summary (Status) Report Page Fields Buttons ACH Batch Detail (Status) Report Page Fields Button ACH Pass-Thru Report About ACH Pass-Through Report Service Information ACH Pass-Through Report Pages ACH Pass-Thru Report Selection Page Fields Buttons ACH Pass-Thru Report Page Fields Button ACH Report About ACH Report Service Information ACH Report Pages ACH Report Selection Page Fields Buttons ACH Summary Report Page Fields Button Report Detail Page Fields Buttons ACH Delete Confirmation Summary Page Fields Button Copyright 2008 by Digital Insight ix Table of Contents

10 13. ACH Exception Reporting About ACH Exception Reporting ACH Exception Report Selection Page Fields Buttons ACH Exception Report Page Fields Buttons Appendix A: ACH Transaction Type Codes Transaction Type Codes Table Appendix B: ACH File Formats About ACH File Formats About ACH File Formats Cutoff-Generated NACHA File Formats Record Size Record Formats Consolidated Payments Corporate Trade Exchange (CTX) Mandatory and Required Fields CSV File Format File Header Format Standard Batch Header Format Cross-Border Batch Header Format CBR Entry Detail Format CCD Entry Detail Format CTX Entry Detail Format PBR Entry Detail Format PPD Entry Detail Format RCK Entry Detail Format WEB Entry Detail Format Standard Addenda Format (CCD, CTX, PPD, WEB) x Table of Contents Copyright 2008 by Digital Insight, an Intuit company

11 Cross-Border Addenda Format (CBR and PBR) Batch Control (Trailer) Format Comma-Separated Value (CSV) File Format Sample NACHA File Report Sample Index Copyright 2008 by Digital Insight xi Table of Contents

12 xii Table of Contents Copyright 2008 by Digital Insight, an Intuit company

13 About This Guide Audience This book is a reference guide. It describes Release 3.7 of the Corporate Banking Automated Clearing House (ACH) product from Digital Insight, an Intuit company. s of the services and the features found in each of the services from an end user s perspective are included. This guide is not intended to give you a detailed understanding of the procedural functionality of the product, nor does it provide back-end system information. For each service in the product, this book describes each page of the service, focusing on the purpose and components of the page. Primarily, this includes detailed descriptions of each field, button, and table on the page. This book is for those who want a basic understanding of the ACH product. It assumes you understand the system infrastructure and the e-commerce Platform product. It also assumes a basic understanding of the Treasury Management industry and the ACH functions as they relate to the industry. The following types of users are referenced in this guide: Bank Personnel - Users at the bank who are responsible for the set up and management of the system and installed products. If permitted, these users can perform all bank functions. Corporate Administrator - Users who are responsible for several corporatelevel administrative tasks, such as granting permissions, assigning accounts, and setting up product functions. These users can also perform all nonadministrative corporate-permitted functions. Corporate Customers - Users at a corporate entity, such as a corporation or a partnership who, if permitted, can perform nonadministrative, corporatepermitted functions. For each corporate customer, bank personnel and corporate administrators can add corporate users. Corporate User - Users at the corporate entity who, if permitted, can perform nonadministrative, corporate-permitted functions. This guide describes services for bank personnel and corporate administrators. For descriptions of corporate customer and corporate user services, see the ACH User Guide. Copyright 2008 by Digital Insight, an Intuit company xiii Preface

14 Using This Guide This reference guide is designed so that you can quickly find a specific topic or read it from cover to cover. The first chapter is an overview of the product that contains a general introduction a process flow (where applicable) a description of all services and the audience for each the setup tasks for bank personnel and corporate administrators. The remaining chapters describe each service in the product and provide reference information for all of the corresponding pages in the service. Each chapter also contains service identifier information, which reflects the initially-installed values for the service. Document Conventions This document incorporates the conventions defined in the following table. Convention Arial font, Italic text Bold text Courier New font Italic text <Italic text> Key + Key System message. For example: When you click Add, the system displays the following message: Batch Pay Weekly Payroll has been added to the system. Button name, radio button name, check box name, user selection, and key name combinations and sequences. For example: Click Submit Press F8 File names and directory paths. For example: This file is located in the \cmserver\include\ folder. New term and variable expressions, such as parameters. For example: A book is a currency pair, which consists of a lead and contra currency. Variable that acts as a placeholder for the literal text to which it refers. For example: the RemoteDestInfo parameter uses the following format: <LeadBank>, <Destination Section>, <Destination Directory> Keyboard combinations where the user must press and hold one key and then press another For example: CTRL + B xiv Preface Copyright 2008 by Digital Insight, an Intuit company

15 Convention Key + Key, Key Keyboard sequences for which the user must press a key combination and then press another key after releasing the combination keys. For example: to open the Spell check dialog box press Alt + E, L. New in this Release Following are the chapters in this guide that describe the updates included in this release of the Automated Clearing House (ACH) product: Chapter 2: ACH Settings was updated for Recurring payments Pass-thru editing and approvals. Chapter 4: Cutoff and Activation Time Maintenance was updated to add the Activation Times Data Entry Page. Chapter 8: User Permissions was updated as follows: Permissions Selection Page to o added Template Approval Options section to the User Permissions Selection Page o reflect the changed page title for the ACH Customer Settings Page o changed the ACH Customer Overall Limits page to the ACH Customer Settings Page ACH Customer Settings Page for approval of pass-thru files. Chapter 12: ACH Report was updated with Status options on the ACH Report Selection Page. Chapter 10: Status Report was updated with Status options on the ACH Status Report Selection Page Create New Complete File button on the ACH Batch Summary (Status) Report page was added for requesting and displaying information about ACH batches with recurring payments. Copyright 2008 by Digital Insight xv Preface

16 Where to Find More Information Digital Insight provides several types of product resources. This section contains a summary of the documentation currently available in the Digital Insight Product Documentation Library, as well as a description and contact information for training and other Digital Insight services. Product Documentation Library Currently, the Product Documentation Library consists of the following deliverables for the ACH Product: Training Services Other Services The Configuration Reference Guide provides detailed descriptions of the many configurable options available for all products. This guide is available electronically in Portable Document Format (.pdf) on the DI Client Site ( The Implementation Guide describes planning, installing, and setting up our products, as well as information about Blue Dragon and database management. This guide is available electronically in.pdf format on the DI Client Site. Online Help is accessible from within each product. To access help, click the Help link. WebHelp provides a fully-integrated, interactive listing of help contents, hyperlinks and popups with related information, and a comprehensive, interactive index, and full-text search function. Technical Release Notes provide information about third-party products, operational instructions, and unit test cases. The Technical Release Notes are delivered electronically in.pdf format on the DI Client Site. The goal of the Training Services is to teach you how to efficiently use each product, which helps improve your service capabilities and increase the efficiency of your business partners. Project managers work with training services personnel to provide front-end bank training for all Digital Insight products. This training is negotiated as part of the bank contract and service agreement and is usually conducted just prior to implementation at the customer s facility. Whenever possible, the training uses the bank s system. Client Support Center The Client Support Center provides 24 hours-a-day, 7 days-a-week product and technical support. You can use this service to: xvi Preface Copyright 2008 by Digital Insight, an Intuit company

17 Ask product questions Report suspected bugs Suggest product enhancements. During standard business hours, 8:00 a.m. to 6:00 p.m. (EST), Monday through Friday, you can contact support the following ways: Client Support Line combkgsupport@digitalinsight.com DI Client Site: Fax After hours and on Saturday, Sunday, and holidays, you can call the Client Support Line to contact support and submit support requests for severity level 1 problems that affect production. You can also use the previously mentioned standard methods to log other problems, and the product and technical support personnel will address these problems on the next business day. Submitting Requests - Provide the following information (if available) when you contact the Client Support Center: Your name Bank name Product with which you are having a problem A clear description of the problem Steps to recreate the problem Any screen shots Browser version Whether you are experiencing the issue in Test or Production Number of affected users Monitoring Requests - You can use DI Client Site to monitor the progress of your support requests online 24 hours a day, 7 days a week. Project Management Our Professional Service team includes project managers who have training from the world s largest professional service firms combined with years of industry experience. Our project managers lead you through every aspect of your implementation and guide you through the entire life cycle of any custom enhancement. Our Professional Services team also can integrate their efforts with a client s project management office. Business Consulting Our business consultants have many years of banking industry experience, in addition to product management experience. Their thorough implementation analysis can help you Copyright 2008 by Digital Insight xvii Preface

18 identify transition issues. Additionally, they can assist you if your product management resources are scarce and you need assistance with topics, such as: Pricing your product Developing marketing plans for a new product rollout or conversion planning. Custom Programming The specific needs of each bank can differ and do not always conveniently fit into a packaged software solution. Anticipating this need, we employ an extensive staff of custom software developers who are available to tailor the software to your exact specifications or to develop custom modules if you have some creative ideas you want to deploy. National Conference The annual National Conference focuses on the continued success of our clients in the cash management and business-banking marketplace. During the conference, users have the opportunity to: Attend interactive breakout sessions Explore our technology showcase Learn how to increase awareness and adoption of online cash management Network with other clients Hear from outside industry speakers Learn about our future vision and product direction xviii Preface Copyright 2008 by Digital Insight, an Intuit company

19 1. ACH Overview This section provides an overview of the ACH product and general descriptions of ACH services. Introduction to ACH The Automated Clearing House (ACH) product allows corporate customers to efficiently Generate files that conform to standard ACH formats, which conform to National Automated Clearing House Association (NACHA) rules and standards Standards that other organizations such as the American National Standards Institute (ANSI) establish Send ACH files to their banks or other third-party processors, where origination systems such as PEP+ or CoACH process them. What is ACH? In the United States the ACH network is a nationwide batch-oriented electronic funds transfer system governed by the NACHA operating rules which provide for the interbank clearing of electronic payments for participating depository financial institutions. The Federal Reserve and Electronic Payments Network act as ACH operators, central clearing facilities through which financial institutions transmit or receive ACH entries. ACH payments include: Direct Deposit of payroll, Social Security and other government benefits, and tax refunds Direct Payment of consumer bills such as mortgages, loans, utility bills and insurance premiums Business-to-business payments E-checks E-commerce payments Federal, state and local tax payments. Supported SEC Codes The ACH product supports the following NACHA standard entry class (SEC) codes: CBR - Corporate Cross-Border Payment Copyright 2008 by Digital Insight, an Intuit company 1 ACH Overview

20 CCD - Cash Concentration or Disbursement (includes federal and state tax payments) CTX - Corporate Trade Exchange (pass-thru only) PBR - Consumer Cross-Border Payment PPD - Prearranged Payment and Deposit RCK - Represented Check Entry TEL - Telephone-Initiated Entry WEB - Internet-Initiated Entry For each record format, the information in the Required column indicates whether the field is: Mandatory - the record must contain this field. If a mandatory field is missing or incorrect, the ACH file fails at the ACH operator. Required - the record should contain this field. If a required field is missing or incorrect, the ACH operator does not fail the ACH file, but the receiving depository financial institution (RDFI) could reject the record. Optional - the record can, but does not have to contain this field. For more information about the SEC codes and file formats that the ACH product supports, see Appendix B, ACH File Formats. Cutoff Times Bank personnel set the cutoff times for the ACH product. For each day of the week, the cutoff times indicate the exact times during the day that the system processes approved batches and builds ACH files. The system then moves the ACH files to a bank-designated directory. Bank personnel retrieve the ACH files from the directory and process them. At the last cutoff time for the day, the system runs the cutoff process and sets the current processing date to the next business day. You can use the ACH Settings service to define a default effective entry date cutoff time. For more information about Cutoff times, see Chapter 4: Cutoff Activation and Time Maintenance. Default effective entry date cutoffs, see Chapter 2 ACH Settings. Warehousing Method Using the ACH Settings service, leadbanks can optionally choose to use a warehousing method that controls when the system processes approved batches. If the system Warehouses approved batches, the system processes approved batches a specific number of days before the effective entry date. The Effective Entry Date Default field for the transaction type code controls the specific number of days. The effective entry date is the date that the bank posts all entries in a batch to customers' accounts. 2 Copyright 2008 by Digital Insight, an Intuit company ACH Overview

21 Does not warehouse approved batches, the system processes all approved batches at the cutoff time, regardless of the effective entry date. For more information see Warehousing Method on page 4-2?? Security Options The ACH product supports the following security options, which provide additional control for ACH activity: ACH Companies Transaction Type Codes Approvals Limits Authentication ACH Companies Use the ACH product to initiate payments. ACH companies allow banks to separate work responsibilities and selectively permit corporate users to specific transaction type codes, which provides an additional level of security for the ACH product. For more information about adding ACH companies, see Chapter 6, Company Maintenance.?? Transaction Type Codes Banks use the ACH product to select the permitted transaction type codes for leadbanks. Each transaction type contains a short name and a long, descriptive name. Transaction type codes are unique codes delivered with the ACH product used to identify the Standard Entry Class (SEC) code for each batch Format of the entries or transactions in the batch Type of transactions in the batch, such as debit or credit. For more information about transaction type codes, see Chapter 3, Transaction Type Maintenance.?? Approvals The ACH product uses approvals to add an additional layer of security to ACH activity. For each ACH company, the bank specifies whether approval is required to process an activated batch. They can require No approval for activated batches The same person who activated the batch to approve the batch A person, other than the person who activated the batch, to approve the batch A person, including the person who activated the batch, to approve the batch. For more information about ACH companies, see Chapter 6, ACH Company Maintenance Copyright 2008 by Digital Insight, an Intuit company 3 ACH Overview

22 Limits Activating batches, see the ACH User Guide Approving batches, see the ACH User Guide. The ACH product allows banks to set limits for their corporate users maintenance, activation, and approval activity for each transaction type code. These limits control the maximum amount you can Manage (add, change, or delete) for each entry in a batch and for each batch Activate for each entry in a batch and for all batches per day Approve for each entry in a batch and for all batches per day. When corporate users activate or approve a batch, the system Verifies that none of the entries in the batch exceed the item limit Verifies that the batch amount (total amount for all entries in the batch) does not exceed the user s batch limit for the transaction type code Adds the batch amount to the user s accumulated activation or approval total to verify that the amount does not exceed the user s daily batch limit Increases the user s accumulated activation or approval total by the batch amount. For more information about limits, see Chapter 8, ACH User Permissions. Authentication The Challenge Manager product can provide additional security for the ACH product. Bank personnel indicate the services, corporate customers, and users who receive a challenge when accessing a service. The user must then enter a valid response code to use the service. Challenge Manager is not active in the base ACH product. To activate this product, contact your implementation representative. For more information about the Challenge Manager product, see the Challenge Manager Reference Guide and online help. Consolidated Payments The Small Business Consolidated Payments product allows corporate customers to enter and approve Payroll payment requests for direct deposit Tax payment requests for federal and state agencies. Several of the settings you establish and manage in the ACH product, such as cutoff times and ACH settings, control the Consolidated Payments product. The Consolidated Payments product relies on the ACH product to collect and process approved payment requests and build ACH files. Specifically, the ACH product uses the following transaction type codes to support Consolidated Payment activity: 4 Copyright 2008 by Digital Insight, an Intuit company ACH Overview

23 PAYCO transaction type code, which is a prearranged payment and deposit (PPD) SEC code and supports only payroll payments TAXCO transaction type code, which is a cash concentration or disbursement (CCD) SEC code and supports only tax payments At cutoff time, the ACH product collects approved payroll and tax payment requests and builds one batch for each group of payroll or tax payment requests that share the same ACH company ID Effective entry date. For more information about the Market Segmentation PAYCO and TAXCO transaction type codes, see Appendix A, Transaction Type Codes Consolidated Payments product, see the Consolidated Payments Reference Guide. Several of the ACH services are not available if your system uses market segmentation, and you must use alternate services in the e-commerce Platform product to perform the same functions. About Market Segmentation Market segmentation includes target markets and market segments. A target market is a collection of products assembled to meet the functional needs of a large group of corporate customers. A leadbank can have multiple target markets. When a system is installed, predefined target markets are included. The target markets determine the Available products and services ACH transaction type code defaults Values for the initial default limits. A market segment is a subset of products selected from the target market s products. A target market can have an unlimited number of market segments. Bank personnel add and manage market segments. Each market segment is associated with a target market. After you associate a market segment with a target market, you select all the services from the list of target market products and services that you want the corporate administrators within the market segment to have permission to access. Alternate Services If your system uses market segmentation, you must use services within the e-commerce Platform product to add and manage several of the ACH settings instead of the following ACH services: Transaction Types Copyright 2008 by Digital Insight, an Intuit company 5 ACH Overview

24 Company Maintenance User Permissions In the e-commerce Platform product, use the following services to set up ACH: Target Market - Use this service to Enable the transaction type codes for target markets Establish the transaction type settings for the o Default effective entry date calculation o Effective entry date override o Offset creation level Set the default limits for the permitted transaction type codes. Market Segment - Use this service to select the available ACH products and services for the market segment. Customer Administration - Use this service to Add and manage the ACH companies for corporate customers Set the approval requirements for ACH companies Add and manage corporate users Permit ACH companies and transaction type codes to corporate users Set the corporate users limits for the permitted transaction type codes. For more information about Batch Templates Target markets and market segments, see the Target Market and Market Segment services in the e-commerce Platform Reference Guide and online help The Customer Administration service, see the e-commerce Platform Customer Administration Reference Guide and online help. Use the ACH Batch Maintenance service to add batch templates for each ACH company. Batch templates contain all the necessary information to build an active batch that you include in an ACH file. These templates serve as models for the entries or transactions you can activate. Optionally, you can use the Template Approval service to set up approval requirements for ACH batch templates. After you view batch template details, you can choose to approve or reject the template itself. After a batch template that requires approval is approved, then it is available for use with other ACH services. When you activate a batch, the system makes an exact copy of the batch template. Before you complete the activation, you can change entry information for that specific activation, such as amounts or addenda information. For more information about Batch templates, see Batch Maintenance in the ACH User Guide 6 Copyright 2008 by Digital Insight, an Intuit company ACH Overview

25 Activating a batch, see Batch Activation in the ACH User Guide Approving batch templates, see Batch Template Approval in the ACH User Guide. Each batch template contains one or more debit or credit entries. Each entry is associated with a participant, which is the person or organization sending or receiving the debit or credit. Use the Participant Maintenance service to manage all entries for a participant across all batches within an ACH company. This eliminates the need to individually access each batch. For more information about Participants, see Participants Overview in the ACH User Guide. Import Files You can use the ACH Import service to import NACHA formatted, fixed, and delimited files into the ACH product, which Adds a new batch template and entries to the new template (NACHA only) Adds entries to an existing batch template (fixed and delimited only) Changes entries in an existing batch template (fixed and delimited only) Deletes entries from an existing batch template (fixed and delimited only). When you import a file into the ACH product, you must select an ACH map. ACH maps control whether the import file adds a new batch template or updates an existing batch template. For more information about ACH Batch Process ACH maps, see Chapter 9, ACH Map Definition. Importing files, see ACH Import in the ACH User Guide. This diagram and table describe the typical ACH batch process. Copyright 2008 by Digital Insight, an Intuit company 7 ACH Overview

26 Step 1 Use the Batch Activation page to activate a batch of ACH entries. The system assigns a customer trace number to all activated batches. 2 The system checks the approval settings for the ACH company to which the batch is associated to determine whether the batch requires approval. If the batch Requires approval, the system goes to Step 3. Does not require approval, the system assigns a bank trace number to the batch and goes to Step 4. 3 Use the Batch Approval page to approve the batch. The system assigns a bank trace number to the approved batch and goes to Step 4. The approval settings for the ACH company associated with the batch control indicate whether the batch must be approved by The same user who activated the batch Another user. 4 The system checks the ACH settings to find the selected warehouse method for approved batches. If the system Warehouses approved batches, the system goes to Step 5. Does not warehouse approved batches, the system goes to Step 6. 8 Copyright 2008 by Digital Insight, an Intuit company ACH Overview

27 Step 5 The system holds the approved batches until the specified date and then goes to Step 6. 6 The cutoff process runs, which processes all approved batches and builds ACH files. The system moves the ACH files to the bank-specified directory. 7 The bank or a third-party processor retrieves the ACH files from the directory and processes them. Proactive Bulletins Proactive bulletins are an optional feature that banks can use to expedite the approval of activated batches. If a bank activates proactive bulletins for ACH approvals, users with activated batches that require approval receive a notification bulletin when they log on to the system. Proactive bulletins contain a link that users can select to display an approval bulletin. Approval bulletins provide The number of activated batches requiring approval A button that displays the Batch Approval Selection page, which you use to approve batches. ACH Recurring Payments - Exception proactive bulletins provide batch numbers and effective entry dates for recurring payments that were not activated automatically. For more information about Pass-Through Files Batch approvals, see Batch Approval in the ACH User Guide. Proactive bulletins, see the e-commerce Platform Reference Guide and online help. You can use the ACH Pass-Through page to load external ACH files into the ACH product. Pass-through files are ACH files generated outside the ACH product and loaded into the product for validation and processing. Loading external ACH files into the ACH product ensures that all files passed to the bank for processing come from the same location and are consistently validated to meet the same NACHA standards. You cannot edit pass-through files. Pass-through files are not subject to cutoff requirements set up in the product. Recurring Payments Corporate users can create recurring payment instructions for ACH payments to be made repeatedly. When you add an ACH batch, you specify the frequencies of the payments and days of the month the payments should be processed. The system automatically activates batches you add with recurring instructions based on the frequency, days, and times you specify. They are activated before the Effective Entry Date associated with the batch based on the transaction type default days. This way, the payments are included in a NACHA file and sent to the bank before the Effective Entry Date. Copyright 2008 by Digital Insight, an Intuit company 9 ACH Overview

28 Batches with a locked or disabled status are not automatically activated. All approval requirements defined for ACH batches apply to recurring payment instructions. Based on the corporate user ID of the person who added or edited the recurring instructions most recently, The Audit report and ACH reports track recurring payments. Activation user limits are increased. Corporate administrators give permission to allow corporate users to establish recurring instructions. You can only add recurring instructions to batches for which you have add or edit permission. Use the ACH Exception Report to view details for batches with recurring payments processing errors. ACH Services The ACH product currently provides ACH services for banks that support large corporations and small businesses using ColdFusion and Java technologies. We are in the process of changing the technology from ColdFusion to Java. During the transition, the system is available in a configuration that includes ColdFusion-enabled services only Both Java-enabled services and ColdFusion-enabled services. Note: Systems that use market segmentation are configured to include both Java-enabled and ColdFusion-enabled services. The following table describes the ACH services. Currently, all of the ACH services use ColdFusion technology. Bank services are documented in this Guide. Corporate services are documented in the ACH User Guide. The service... With the Service ID... Allows... Bank Services ACH Company Maintenance ACHCompany Bank personnel to add and manage the ACH companies for corporate customers. Note: If your system uses market segmentation, this service is not available. You must use the Customer Administration service in the e-commerce Platform product. For more information about Market segmentation, see Market Segmentation on page 5. The Customer Administration service, see the e-commerce Platform Customer Administration Guide. 10 Copyright 2008 by Digital Insight, an Intuit company ACH Overview

29 The service... ACH Cutoff Time Maintenance ACH Exception Report ACH File Name Maintenance ACH Host End Point Maintenance With the Service ID... ACHCutoff ACHException ACHFileNames ACHEndPoint Allows... Bank personnel to set up and manage the cutoff times for ACH activity. Bank personnel to request and display summary and detailed information for ACH batches with recurring payments and errors found during processing. Bank personnel to add and manage unique file names for corporate customers. Note: This is an optional service. Bank personnel to add and manage end points, which you use to divert ACH files from standard processing for one or more corporate customers. Note: This is an optional service. ACH Map Definition ACHMapDef Bank personnel and corporate customers to add and manage ACH maps, which control the format of imported ACH files and how imported files function. ACH Pass-Thru Report ACHPTReport Bank personnel and corporate customers to display summary information for the passthru ACH files loaded into the ACH product. ACH Report ACHRpt Bank personnel and corporate customers to display summary and detailed information for batches. ACH Settings ACHSettings Bank personnel to set up and manage the ACH settings, which control How the system builds ACH files addresses the system uses to send ACH information and messages to the bank Cross-border settings. ACH Status Report ACHStatus Bank personnel to display summary and detailed information for ACH files and the batches in the ACH files. Copyright 2008 by Digital Insight, an Intuit company 11 ACH Overview

30 The service... ACH Transaction Type Maintenance ACH User Permissions Corporate Services ACH Batch Activation ACH Batch Approval ACH Batch Maintenance With the Service ID... ACHTranTypes ACHUserPerm ACHActivate ACHApprove ACHBatch Allows... Bank personnel to select and manage the short names and long, descriptive names for the transaction type codes the bank allows for ACH activity. Note: If your system uses market segmentation, this service is not available. You must use the Target Market service in the e-commerce Platform product. For more information about Market segmentation, see Market Segmentation on page 5. The Target Market service, see the e- Commerce Platform Reference Guide. Bank personnel and corporate administrators to Add and manage permissions to ACH companies and transaction type codes for corporate personnel Set the ACH limits for corporate personnel. Note: If your system uses market segmentation, this service is not available. You must use the Customer Administration service in the e-commerce Platform product. For more information about Market segmentation, see Market Segmentation on page 5. The Customer Administration service, see the e-commerce Platform Customer Administration Guide. Corporate customers to activate ACH batches. Corporate customers to approve activated batches. Corporate customers to add and manage ACH batch templates. 12 Copyright 2008 by Digital Insight, an Intuit company ACH Overview

31 The service... ACH Batch Template Approval ACH Exception Report With the Service ID... ACHTmplAppr ACHException Allows... Corporate customers to approve ACH batch templates. After viewing batch template details, you can choose to approve or reject the template itself. If you approve a batch template that requires approval, the batch template is then available for use with other ACH services. If you reject a batch template that requires approval, it is in the rejected state and is available for use only in the ACH Batch Maintenance service. Corporate customers to request and display summary and detailed information for ACH batches with recurring payments and errors found during processing. ACH Import ACHImport Corporate customers to import NACHA formatted, delimited, and fixed files into the ACH product from an outside source. ACH Participant Maintenance ACHPartMnt Corporate customers to manage batch entry information for participants. ACH Pass-Thru ACHPassThru Corporate customers to load ACH files built outside of the ACH product into the ACH product for validation and processing. ACH Pass-Thru Report ACHPTReport Bank personnel and corporate customers to display summary information for the passthru ACH files loaded into the ACH product. ACH Reversals ACHReversal Corporate customers to submit a request to the bank to reverse an entry that was previously sent in an ACH batch file. ACH Totals ACHTotals Corporate customers to submit to the bank the total debit and credit amounts of all ACH files sent to the bank for processing during the current day. Copyright 2008 by Digital Insight, an Intuit company 13 ACH Overview

32 The service... ACH User Permissions With the Service ID... ACHUserPerm Allows... Bank personnel and corporate administrators to Add and manage permissions to ACH companies and transaction type codes for corporate personnel Set the ACH limits for corporate personnel. Note: If your system uses market segmentation, this service is not available. You must use the Customer Administration service in the e-commerce Platform product. For more information about Market segmentation, see Market Segmentation on page 5. The Customer Administration service, see the e-commerce Platform Customer Administration Guide. ACH User Interface For security purposes, when using the Internet-based ACH product, be sure to use Back, Cancel, Delete, Print, and Reset buttons on application pages instead of your browser's Back, Forward, Stop, or Refresh buttons. To refresh a page, reselect the service tab. These procedures ensure the security of banking data such as account numbers. Be careful to click buttons displayed on ACH pages only once. Double-clicking buttons can cause system problems. For example, following is the ACH Report page with Submit and Clear buttons that you should only click once. 14 Copyright 2008 by Digital Insight, an Intuit company ACH Overview

33 Page Element Standards Element Example Field sizes Required fields Requested date/time stamp Report columns Multi-select boxes Date formats Display next to field names Display in red and have an asterisk (*) on the software page Displays on reports when you generate them Are sortable, except columns that contain hyperlinks Selects multiple options in a multiselect box Short - M/d/yy Medium - MMM d, yyyy Long - MMMM d, yyyy Click a column header to sort the data in either ascending or descending order, depending on the current sort state. Press the Shift key while you click each option. To select nonconsecutive options, press the Control (Ctl) key while you click the options. Short - 3/7/04 Medium - Mar 27, 2004 Long - Marc 27, 2004 Copyright 2008 by Digital Insight, an Intuit company 15 ACH Overview

34 Element Example Time formats Credits Short - h:mm a Medium - h:mm:ss a Long - H:mm:ss a z Display in green 4:24 PM 4:24:53 PM 4:24:53 PM EST Debits Display in red Getting Started This section describes the tasks for setting up the ACH product for use by bank personnel, corporate administrators, and corporate users. ACH Setup Tasks for Bank Personnel Bank personnel must complete the following setup tasks before using the ACH product: Use the ACH Settings service to define the ACH settings. Use the ACH Transaction Type Maintenance service to select the short name and long, descriptive name for transaction types for the leadbank. Use the ACH Cutoff Time Maintenance service to add the leadbank s cutoff times for ACH activity and Consolidated Payments activity. Use the ACH Company Maintenance service to Add ACH companies for each corporate customer Select the transaction type codes for each ACH company Note: If your system uses market segmentation, corporate administrators must use the Customer Administration service in the e-commerce Platform product instead of the Company Maintenance service to complete these setup tasks. Use the User Permissions service to Permit corporate personnel access to ACH companies for ACH activity Select the corporate user s permitted transaction type codes for each ACH company Set the maintenance, activation, and approval limits for the user s permitted transaction type codes in the ACH companies. 16 Copyright 2008 by Digital Insight, an Intuit company ACH Overview

35 Note: If your system uses market segmentation, corporate administrators must use the Customer Administration service in the e-commerce Platform product instead of the Company Maintenance service to complete these setup tasks. Use the ACH End Point Maintenance service (if the bank uses end points) to add end points and associate one or more corporate customers with each end point. Use the ACH File Name Maintenance service (if the bank uses file names) to Add unique file names for ACH files Associate a corporate customer with a file name. ACH Setup Tasks for Corporate Administrators Corporate administrators must complete the following setup tasks before using the ACH product: Use the ACH Batch Maintenance service to add the batch templates for each ACH company. Use the User Permissions service (if the bank permits) to Permit corporate users access to ACH companies for ACH activity Select the corporate user s permitted transaction type codes for each ACH company Set the maintenance, activation, and approval limits for the user s permitted transaction type codes in the ACH companies. Use the ACH Map Definition service (if you plan to use Import) to add the ACH maps for importing files into the ACH product. Note: If your system uses market segmentation, corporate administrators must use the Customer Administration service in the e-commerce Platform product instead of the Company Maintenance service to complete these setup tasks. ACH Setup Tasks for Corporate Users Depending on how the corporate customer operates, corporate users may be required to complete the following setup tasks before using the ACH product: Menu Interfaces Use the ACH Batch Maintenance service to add the batch templates for each ACH company. Use the ACH Map Definition service to add the ACH maps for importing files into the ACH product. The system provides the following user menu interfaces for system navigation: Tabbed-Menu Interface Copyright 2008 by Digital Insight, an Intuit company 17 ACH Overview

36 Banks and some corporate customers use tabbed menus for system navigation. To use a tabbed menu, select the service group to display the associated service tabs. Then select the service tab to display the specific service. Tiered-Menu Interface Corporate customers also use tiered menus for system navigation. To use a tiered menu, select the top tier to display the associated lower-level tier. Then select the lower-level tier to display specific services. Tiered menus can contain up to three levels. 18 Copyright 2008 by Digital Insight, an Intuit company ACH Overview

37 2. ACH Settings About ACH Settings Use the ACH Settings service to add and manage the ACH settings for the leadbank. These settings control How the system builds and formats ACH files as well as the default information for certain key fields The address the system uses to send system messages, reversal requests, and ACH file totals to the bank Whether corporate customers can add and manage cross-border batches Whether corporate customers can add entries to batches that affect general ledger accounts and loan accounts. Relationship to Consolidated Payments The system uses several of the settings in the ACH Settings service to process approved payment requests for the Consolidated Payments product. For more information, see the Consolidated Payments Reference Guide. Relationship to other ACH Services The settings in this service affect many of the other ACH services. You should establish the settings in this service before you set up the other ACH services. The system uses some of the settings in this service as the default values in other ACH services. Users can override these default values in the other ACH services. Service Information The following information applies to the ACH Settings service. Technology This is a ColdFusion-enabled service. Audience The ACH Settings service is available to bank personnel. For a complete list of all ACH services and the audience for each service, see ACH Services on page 10. Default Service Identifiers The following default service identifiers are associated with the ACH Settings service and reflect the initially-installed values: Copyright 2008 by Digital Insight, an Intuit company 19 ACH Settings