ACH Origination User Guide

ACH Origination User Guide MKT-2846 8/15

Table of Contents Creating a New ACH Transfer... 3 Creating a Prearranged Payment or Deposit Entry (PPD)... 3 Creating a Cash Concentration or Disbursement Entry (CCD)... 6 Creating a Corporate Trade Exchange Entry (CTX)... 9 Creating a New ACH Transfer Using Existing Transfer... 12 ACH Transfer Template... 15 Creating a New Transfer Template... 15 Initiating a New Transfer from an Existing Template... 17 Edit Template... 19 Delete Template... 20 Importing an ACH File... 22 Importing ACH Using an Import Template... 25 New Import Template... 25 Existing Import Template... 31 Delete Import Template... 34 Inquire ACH Transfer... 36 Exports and Reporting... 37 Change ACH Transfer... 38 Delete ACH Transfer... 41 Review ACH Transfer... 43 Additional Features... 44 Hold... 44 Prenote... 44 Column Sorting... 45 Column Filtering... 46 Frequently Asked Questions... 47 Common ACH Terms... 49 ACH Origination User Guide 2

Creating a New ACH Transfer To generate an ACH transfer, first launch the Mechanics Bank web site at mechanicsbank.com and login to the Business Online Banking service. Select the ACH Origination link from either the Management Tools menu or the Quick Launch menu. ACH Manager will open as a new window. Creating a Prearranged Payment or Deposit Entry (PPD) A PPD is a credit or debit transaction used for transferring funds into consumer accounts at the Receiving Depository Financial Institution. PPD transactions can be used for a variety of purposes including Payroll, Prearranged Deposits, and Prearranged Payments. Select the New ACH Transfer option from the menu on the left, select the ACH Type (Prearranged Deposit or Prearranged Payment) from the drop down menu on the right, and click Submit. Complete the following fields: Description - Based on the type of ACH selected, enter the ACH File Name (ex. Payroll). Field information will post to both the company and recipients bank statement. The Company name will appear first, then the Description. Effective Date - Click on the calendar icon and select the effective date of the transaction(s). Tax Identification Number - Only applicable for multi-entity clients. If available, select the appropriate company tax identification number from the drop down menu. Transfer From (Prearranged Deposit) - Use the dropdown menu to select the account you want the funds to be transferred from and the total dollar amount you want withdrawn from that account. Transfer From (Prearranged Payment) - Enter the receivers name, account number, account type, the routing transit number of their financial institution, and the dollar amount to be debited. If you have incomplete information about the receiver s financial institution you can look it up by clicking on the Search icon. Enter any information you have. (Ex. Routing Transit Number, Institution Name or City and State.) A list of institutions matching the information you provided will appear. Click on the Institution Name to fill in the Routing Transit box. You have the option of including a description, which is like the memo line on a check. Transfer To (Prearranged Deposit) - Enter the receivers name, account number, account type, the routing transit number of their financial institution, and the dollar amount to be credited. You have the option of including a description, which is like the memo line on a check. ACH Origination User Guide 3

Transfer To (Prearranged Payment) - Use the dropdown menu to select the account you want the funds to be transferred to and the total dollar amount you want deposited to that account. Once all individual entries are entered, you can chose to either Save or Process the transaction(s). Selecting Cancel will cancel the process and return you to the main ACH Manager menu. Selecting Save stores your ACH transfer, allowing you to make changes and/or submit the transfer at a later time. Click Done, to return to the main ACH Manager menu. Selecting Process activates the ACH transfer, prompting a Security Challenge that will require a One Time Password (generated from your Security Token). ACH Origination User Guide 4

A processing screen displays the progress of several validation checks. o If the transfer requires client approval, a yellow Warning message will appear. o Once the file has successfully processed click Done. o o If the transfer is unable to process due to an error, a red Error message will appear. Click Done to return to the main ACH Manager menu. Depending on the error message, you may need to contact the bank for assistance. Once the error is corrected, you will need to resubmit the transfer. ACH Origination User Guide 5

Creating a Cash Concentration or Disbursement Entry (CCD) CCD transactions are debits or credits for distributing or consolidating funds between entities. In their simplest form, a CCD transaction can serve as stand alone funds transfer, while a CCD+ transaction can be transmitted with a limited amount of payment related data. CCD transactions can be for a variety of purposes including Corporate Debit, Corporate Credit, Vendor Payment, and Remittance. Select the New ACH Transfer option from the menu on the left, select the ACH Type (Corporate Credit or Corporate Debit) from the drop down menu on the right, and click Submit. Complete the following fields: Description - Based on the type of ACH selected, enter the ACH File Name (ex. Vendor Pymt). Field information will post to both the company and recipients bank statement. The Company name will appear first, then the Description. Effective Date - Click on the calendar icon and select the effective date of the transaction(s). Tax Identification Number - Only applicable for multi-entity clients. If available, select the appropriate company tax identification number from the drop down menu. Transfer From (Corporate Credit) - Use the dropdown menu to select the account you want the funds to be transferred from and the total dollar amount you want withdrawn from that account. Transfer From (Corporate Debit) - Enter the receivers name, account number, account type, the routing transit number of their financial institution, and the dollar amount to be debited. If you have incomplete information about the receiver s financial institution you can look it up by clicking on the Search icon. Enter any information you have. (Ex. Routing Transit Number, Institution Name or City and State.) A list of institutions matching the information you provided will appear. Click on the Institution Name to fill in the Routing Transit box. You have the option of including a description, which is like the memo line on a check. Transfer To (Corporate Credit) - Enter the receivers name, account number, account type, the routing transit number of their financial institution, and the dollar amount to be credited. You have the option of including a description, which is like the memo line on a check. Transfer To (Corporate Debit) - Use the dropdown menu to select the account you want the funds to be transferred to and the total dollar amount you want deposited to that account. ACH Origination User Guide 6

Once all individual entries are entered, you can chose to either Save or Process the transaction(s). Selecting Cancel will cancel the process and return you to the main ACH Manager menu. Selecting Save stores your ACH transfer, allowing you to make changes and/or submit the transfer at a later time. Click Done to return to the main ACH Manager menu. Selecting Process activates the ACH transfer, prompting a Security Challenge that will require a One Time Password (generated from your Security Token). ACH Origination User Guide 7

A processing screen displays the progress of several validation checks. o If the transfer requires client approval, a yellow Warning message will appear. o Once the file has successfully processed click Done. o o If the transfer is unable to process due to an error, a red Error message will appear. Click Done to return to the main ACH Manager menu. Depending on the error message, you may need to contact the bank for assistance. Once the error is corrected, you will need to resubmit the transfer. ACH Origination User Guide 8

Creating a Corporate Trade Exchange Entry (CTX) CTX transactions are used to transfer funds (debits or credits) between trading partners. CTX supports multiple descriptions for each entry. Select the New ACH Transfer option from the menu on the left, select the ACH Type (Corporate Trade Exchange) from the drop down menu on the right, and click Submit. Complete the following fields: Description - Based on the type of ACH selected, enter the ACH File Name (ex. Vendor Pymt). Field information will post to both the company and recipients bank statement. The Company name will appear first, then the Description. Transfer Start Date - Click on the calendar icon and select the effective date of the transaction(s). Tax Identification Number - Only applicable for multi-entity clients. If available, select the appropriate company tax identification number from the drop down menu. Transfer From - Use the dropdown menu to select the account you want the funds to be transferred from and the total dollar amount you want withdrawn from that account. Transfer To - Enter the receivers name, account number, account type, the routing transit number of their financial institution, and the dollar amount to be credited. If you have incomplete information about the receiver s financial institution you can look it up by clicking on the Search icon. Enter any information you have. (Ex. Routing Transit Number, Institution Name or City and State.) A list of institutions matching the information you provided will appear. Click on the Institution Name to fill in the Routing Transit box. You have the option of including multiple descriptions, which is like the memo line on a check. Any payment related information may be entered in the description field. ACH Origination User Guide 9

Once all individual entries are entered, you can chose to either Save or Process the transaction(s). Selecting Cancel will cancel the process and return you to the main ACH Manager menu. Selecting Save stores your ACH transfer, allowing you to make changes and/or submit the transfer at a later time. Click Done to return to the main ACH Manager menu. Selecting Process activates the ACH transfer, prompting a Security Challenge that will require a One Time Password (generated from your Security Token). ACH Origination User Guide 10

A processing screen displays the progress of several validation checks. o If the transfer requires client approval, a yellow Warning message will appear. o Once the file has successfully processed click Done. o o If the transfer is unable to process due to an error, a red Error message will appear. Click Done to return to the main ACH Manager menu. Depending on the error message, you may need to contact the bank for assistance. Once the error is corrected, you will need to resubmit the transfer. ACH Origination User Guide 11

Creating a New ACH Transfer Using Existing Transfer A New ACH Transfer can be created from a previously processed ACH Transfer. Select the New ACH Transfer Using Existing Transfer option from the menu on the left and provide any specific information about the existing transfer you want to use, from the search menu on the right, and click Submit. From the ACH List, select the existing transfer that you want to use, to create a new transfer. After selecting a transfer from the list, the transfer will open in an editing screen. You can change the Description, Effective Date, Accounts, Transfer To and From details, as needed. ACH Origination User Guide 12

Once all individual entries are entered, you can chose to either Save or Process the transaction(s). Selecting Cancel will cancel the process and return you to the main ACH Manager menu. Selecting Save stores your ACH transfer, allowing you to make changes and/or submit the transfer at a later time. Click Done to return to the main ACH Manager menu. Selecting Process activates the ACH transfer, prompting a Security Challenge that will require a One Time Password (generated from your Security Token). A processing screen displays the progress of several validation checks. o If the transfer requires client approval, a yellow Warning message will appear. o Once the file has successfully processed click Done. ACH Origination User Guide 13

o o If the transfer is unable to process due to an error, a red Error message will appear. Click Done to return to the main ACH Manager menu. Depending on the error message, you may need to contact the bank for assistance. Once the error is corrected, you will need to resubmit the transfer. ACH Origination User Guide 14

ACH Transfer Template You can create ACH transfer templates to build transfer files for reoccurring use. The templates can be assigned to specific users for use. You can create new templates, create a transfer from an existing template, edit existing templates and delete templates that you no longer need. Creating a New Transfer Template Select the ACH Transfer Template option from the menu on the left and click Submit. A Template List will appear below. Click on the icon to create a new template. Select the ACH Type (ex. Prearranged Deposit) from the drop down menu on the right, and click Submit. Complete the following fields: Template Name - Based on the type of ACH selected, enter the ACH Template Name (ex. Payroll). Field information will post to both the company and recipients bank statement. Tax Identification Number - Only applicable for multi-entity clients. If available, select the appropriate company tax identification number from the drop down menu. Template Group - Click on the icon to create a new template group. Enter a template group name and click Submit. If a template group was created previously, simply select one from the drop down menu as applicable. User Access - Select the check box next to each user that you want to grant access to this template ACH Origination User Guide 15

Transfer From (Prearranged Deposit, Corporate Credit) - Use the dropdown menu to select the account you want the funds to be transferred from and the total dollar amount you want withdrawn from that account. The Default Amount field is a mandatory field; if you do not have a total dollar amount to enter at this time, you must enter 0.00. Transfer From (Prearranged Payment, Corporate Debit) - Enter the receivers name, account number, account type, the routing transit number of their financial institution, and the dollar amount to be debited. The Default Amount field is a mandatory field; if you do not have a dollar amount to enter at this time, you must enter 0.00. If you have incomplete information about the receiver s financial institution you can look it up by clicking on the Search icon. Enter any information you have. (Ex. Routing Transit Number, Institution Name or City and State.) A list of institutions matching the information you provided will appear. Click on the Institution Name to fill in the Routing Transit box. You have the option of including a description, which is like the memo line on a check. Transfer To (Prearranged Deposit, Corporate Credit) - Enter the receivers name, account number, account type, the routing transit number of their financial institution, and the dollar amount to be credited. The Default Amount field is a mandatory field; if you do not have a dollar amount to enter at this time, you must enter 0.00. You have the option of including a description, which is like the memo line on a check. Transfer To (Prearranged Payment, Corporate Debit) - Use the dropdown menu to select the account you want the funds to be transferred to and the total dollar amount you want deposited to that account. The Default Amount field is a mandatory field; if you do not have a total dollar amount to enter at this time, you must enter 0.00. If you need to add additional rows to the template, simply click the Add Row link. If you would like to have the option to input additional to/from rows at the time you initiate a transfer, check the box next to Allow additional or input of To/From Account. Once all fields are completed, select Save. This will save your template and return you to the ACH Manager main menu. Selecting Cancel will cancel the process and return you to the main ACH Manager menu. ACH Origination User Guide 16

Initiating a New Transfer from an Existing Template Select the ACH Transfer Template option from the menu on the left and click Submit. A Template List will appear below. From the Template List, click on the transfer from. icon next to the template that you want to initiate the Complete the following fields: Effective Date - Click on the calendar icon and select the effective date of the transaction(s). Transfer From (Prearranged Deposit, Corporate Credit) - The default dollar amount that was entered in the template will display. You can edit the dollar amount as needed. Transfer From (Prearranged Payment, Corporate Debit) - The receivers information and default dollar amount that was entered in the template will display. You can edit the dollar amount as needed. You also, have the option of including a description, which is like the memo line on a check. Transfer To (Prearranged Deposit, Corporate Credit) - The receivers information and default dollar amount that was entered in the template will display. You can edit the dollar amount as needed. You also, have the option of including a description, which is like the memo line on a check. Transfer To (Prearranged Payment, Corporate Debit) - The default dollar amount that was entered in the template will display. You can edit the dollar amount as needed. ACH Origination User Guide 17

Once all fields are completed, you can chose to either Save or Process the transaction(s). Selecting Cancel will cancel the process and return you to the main ACH Manager menu. Selecting Save stores your ACH transfer, allowing you to make changes and/or submit the transfer at a later time. Click Done, to return to the main ACH Manager menu. Selecting Process activates the ACH transfer, prompting a Security Challenge that will require a One Time Password (generated from your Security Token). A processing screen displays the progress of several validation checks. o If the transfer requires client approval, a yellow Warning message will appear. o Once the file has successfully processed click Done. ACH Origination User Guide 18

o o If the transfer is unable to process due to an error, a red Error message will appear. Click Done to return to the main ACH Manager menu. Depending on the error message, you may need to contact the bank for assistance. Once the error is corrected, you will need to resubmit the transfer. Edit Template Specific detail of existing templates can be edited and saved for future use. Select the ACH Transfer Template option from the menu on the left and click Submit. A Template List will appear below. From the Template List, click on the icon next to the template that you want to edit. ACH Origination User Guide 19

The template will open in an editing screen. You can change the Template Name, Template Group, User Access, Transfer From/Transfer To details as needed. To delete an entire row from the template, click on the X icon to the right of the row. When you are finished making your edits, select Save to save the changes and return to the ACH Manager main menu. Selecting Cancel will cancel the process and return you to the main ACH Manager menu. Delete Template You can delete an existing template if it s no longer needed. Select the ACH Transfer Template option from the menu on the left and click Submit. A Template List will appear below. From the Template List, click on the X icon next to the template that you want to delete. ACH Origination User Guide 20

Select Delete to continue. A warning message will appear asking Are you sure you want to delete this Template? Select OK to permanently delete the template and return to the ACH Manager main menu. ACH Origination User Guide 21

Importing an ACH File Many accounting programs will let you export payroll or other payables in a NACHA formatted file. Those files can then be imported into ACH Manager. (Must be balanced files) Select the Import ACH Transfer option from the menu on the left, and click Submit. 1. File Selection Click on the Browse button to browse for your ACH file. The browse option will give you a standard Windows Open File dialogue box, where you can find and select the NACHA file you exported from your account software. The Company Name selection is only applicable for multi-entity clients. If available, select the appropriate company tax identification number from the drop down menu. Select the Transfer Type from the drop down menu on the right and then click Next. 2. Import The system will display a summary of the ACH transfer from the imported file. Back will return you to the File Selection screen Finish opens the Import Confirmation screen Cancel will return you to the main ACH Manager menu If the ACH file contains an invalid effective date (ex. past effective date), you will need to click the edit icon and select a valid date from the calendar. ACH Origination User Guide 22

3. Import Confirmation The system will display a summary of the ACH transfer from the imported file and an import confirmation number. You have the option of Review, Process or Cancel Review will allow you to view/edit the imported information in your file Process submits the ACH file Cancel will return you to the main ACH Manager menu (the imported file is saved) Selecting Review opens the imported file details and allows you to edit the information if needed. Once any changes are made, you can select Process to submit your transfer. o Selecting Save stores your ACH transfer, allowing you to submit the transfer at a later time o Selecting Cancel will cancel the process and return you to the main ACH Manager menu ACH Origination User Guide 23

Selecting Process activates the ACH transfer, prompting a Security Challenge that will require a One Time Password (generated from your Security Token). A processing screen displays the progress of several validation checks. o If the transfer requires client approval, a yellow Warning message will appear. o Once the file has successfully processed click Done. o o If the transfer is unable to process due to an error, a red Error message will appear. Click Done to return to the main ACH Manager menu. Depending on the error message, you may need to contact the bank for assistance. Once the error is corrected, you will need to re-submit the transfer. ACH Origination User Guide 24

Importing ACH Using an Import Template ACH Transfers in a non NACHA formatted file (ex. CSV, Excel) can be imported and processed using an import template. New Import Template A New Template needs to be built to import non-nacha formatted files for the first time. Templates must be built for each of the specific ACH Standard Entry Classes. Import Templates are available to only the specific online user that created the template. Each online user would need to create their own import template if they are using this function. Select the Import ACH Using Template, then New Template option from the menu on the left, and click Submit. 1. File Selection Click on the Browse button to browse for your file. The browse option will give you a standard Windows Open File dialogue box, where you can find and select the excel or.csv file. Click Next to continue. ACH Origination User Guide 25

2. Template Details Complete the following fields: ACH Transfer Type - Based on the type of ACH items you are sending (ex. Prearranged Deposit for payroll). Template Description - Based on the type of ACH selected, enter the ACH File Name (ex. Payroll). Field information will post to both the company and recipients bank statement. The Company name will appear first, then the Description. Tax Identification Number - Only applicable for multi-entity clients. If available, select the appropriate company tax identification number from the drop down menu. Number of Header Rows to Exclude - Enter the number of header rows in the file that should be excluded (row headings, blank rows, etc). Number of Footer Rows to Exclude - Enter the number of footer rows in the file that should be excluded. Insert Decimal into Amounts - Select No or Yes from drop down menu. File type - Select Delimited or Fixed Width o For Delimited, select which method the fields in the file are separated by: Tab, Semicolon, Comma, Space Once all fields are completed, select Next. ACH Origination User Guide 26

3. Field Definitions Complete the following fields: Layout Preview - Define each column in the file by selecting the appropriate field value for each column (ex. Account Number) or choose Exclude Column if the field should be excluded. (See below for required fields) Apply Additional Values to File o Additional field values can be applied to the file by selecting any one of the applicable options from the drop down menu. The values selected here will be applied to the entire file. Amount* Effective Date Payment Related Information Discretionary Data Name* Employee ID R/T Number* Account Number* Transaction Code* 22- credit to checking 27- debit to checking 32- credit to savings 37- debit to savings *required fields Offset Account Options - If the Offset Account is defined in the file select the Offset Account Defined in File option. If it s not contained in the file, select the Add Offset Account to File option and select your offset account from the drop menu on the right. Effective Date Option - Select the applicable effective date option. Once all fields are completed, select Next. ACH Origination User Guide 27

4. Data Mapping The system will display a summary of the file field values. If the option to Prompt For Date was chosen from the previous screen, you will need to select the Effective Date from the calendar. You have the option of Back, Next or Cancel. Back will return you to the Field Definitions screen Next will take you to the Import screen Cancel will return you to the main ACH Manager menu 5. Import The system will display a summary of the imported file. Select Finish to continue. ACH Origination User Guide 28

6. Import Confirmation The system will display a summary of the ACH transfer from the imported file and an import confirmation number. You have the option of Review, Process or Cancel. Review will allow you to view/edit the imported information in your file. Make changes if necessary; then select Save. Saving the file will not process the file. It will only save the import template for future use. If no changes are needed, simply select Cancel and you will return to the ACH Manger main menu. The import template will now be available to use under the Import ACH Using Template, Existing Template option Process submits the ACH file for processing Cancel will return you to the main ACH Manager menu and will not save the import template Selecting Process activates the ACH transfer, prompting a Security Challenge that will require a One Time Password (generated from your Security Token). ACH Origination User Guide 29

A processing screen displays the progress of several validation checks. o If the transfer requires client approval, a yellow Warning message will appear. (See instructions for ACH Transfer approval process) o Once the file has successfully processed click Done and you will return to the main ACH Manager menu. o o If the transfer is unable to process due to an error, a red Error message will appear. Click Done to return to the main ACH Manager menu. Depending on the error message, you may need to contact the bank for assistance. Once the error is corrected, you will need to resubmit the transfer. ACH Origination User Guide 30

Existing Import Template An existing Import Template can be used for recurring transfers if a New Import Template has already been built and saved. Select the Import ACH Using Template, then Existing Template option from the menu on the left, and click Submit. 1. File Selection Click on the Browse button to browse for your file. The browse option will give you a standard Windows Open File dialogue box, where you can find and select the excel or.csv file. From the Template drop down menu, select the template that you want to import the file into (ex. Payroll). Click Next to continue. 2. Data Mapping The system will display a summary of the file field values. If prompted for Effective Date, you will need to select the Effective Date from the calendar. You have the option of Back, Next or Cancel. Back will return you to the File Selection screen Next will take you to the Import screen Cancel will return you to the main ACH Manager menu ACH Origination User Guide 31

3. Import The system will display a summary of the imported file. Select Finish to continue. 4. Import Confirmation The system will display a summary of the ACH transfer from the imported file and an import confirmation number. You have the option of Review, Process or Cancel. Review will allow you to view/edit the imported information in your file. Make changes if necessary Process submits the ACH file for processing Cancel will return you to the main ACH Manager menu *Your transfer will not be submitted unless you choose the Process option Selecting Process activates the ACH transfer, prompting a Security Challenge that will require a One Time Password (generated from your Security Token). ACH Origination User Guide 32

A processing screen displays the progress of several validation checks. o If the transfer requires client approval, a yellow Warning message will appear. (See instructions for ACH Transfer approval process) o Once the file has successfully processed click Done and you will return to the main ACH Manager menu. o o If the transfer is unable to process due to an error, a red Error message will appear. Click Done to return to the main ACH Manager menu. Depending on the error message, you may need to contact the bank for assistance. Once the error is corrected, you will need to resubmit the transfer. ACH Origination User Guide 33

Delete Import Template Delete Template can be used to remove a saved Template. Select the Import ACH Using Template, then Delete Template option from the menu on the left, and click Submit. From the Template Selection list, select the X icon to the right of the template name that you want to delete. Select Delete to continue. ACH Origination User Guide 34

A Warning message will display at the top of the page, stating that the template will be permanently deleted. Select Delete to continue. A confirmation will display at the top of the page, that the template was successfully deleted. Select Done to return to the main ACH Manager menu. ACH Origination User Guide 35

Inquire ACH Transfer You can easily find the status or view the details about previous transactions using the Inquire ACH Transfer option. Select the Inquire ACH Transfer option from the menu on the left and provide any specific information about the transfer you want to inquire on, from the search menu on the right, and click Submit. Any ACH transfer matching the information provided will display in the ACH List below. The search menu is optional; if you simply click Submit without completing the search menu options, all of your transfer history will appear. From the ACH List, you can view the Transfer Description, Transfer Date, Debit and Credit Amounts, Transfer Status and Details. You can view additional details of a specific transfer by clicking on the transfer name under the Transfer Description column. Saved transfer status indicates that the transfer has been created but not submitted Pending Origination transfer status indicates that the transfer has been submitted and is pending the bank to export and originate the transfer Processed transfer status indicates that the transfer has been successfully validated and has been processed by the bank Transfer Exceeds Limit transfer status indicates that the transfer has exceeded your preapproved ACH transfer limits Transfer Exceeds Review: Pending Approval transfer status indicates that the transfer is pending client approval File not originated: Account Balance Verification Completed with Errors transfer status indicates that there were insufficient funds in the funding account ACH Origination User Guide 36

Exports and Reporting To export or generate a report from the Inquire ACH Transfer menu, click on the report icon right side of the ACH List bar., located on the An Export ACH List window will open and display the list of transfers from your inquiry. You can place a check mark in the box next to each transfer that you want included in your report or export. Once the transactions are selected, select one of the three options from the drop down menu; Transfer List, Batch List or All Transactions. Then select Print to generate a pdf version of the report or select Export to generate a csv file. ACH Origination User Guide 37

Change ACH Transfer Specific detail of pending transfers that have a Saved status may be changed. Select the Change ACH Transfer option from the menu on the left and provide any specific information about the transfer you want to change, from the search menu on the right, and click Submit. Any ACH transfer matching the information provided will display in the ACH List below. The search menu is optional; if you simply click Submit without completing the search menu options, all of your transfers that are in a Saved status, will appear. From the ACH List, select the transfer that you want to change. The saved transfer will open in an editing screen. You can change the Description, Dates, Amounts, Transfer To and From details as needed. When the pending transfer information is correct, you can either Save or Process the transactions. Selecting Cancel will cancel the process and return you to the main ACH Manager menu. ACH Origination User Guide 38

Selecting Save stores the transfer as a pending transaction allowing you to make modifications at a later time. A Confirmation screen displays a summary of your ACH transfer. Select Done to return to the ACH Manager main menu. Selecting Process activates the ACH transfer, prompting a Security Challenge that will require a One Time Password (generated from your Security Token). A processing screen displays the progress of several validation checks. o If the transfer requires client approval, a yellow Warning message will appear. (See instructions for ACH Transfer approval process) o Once the file has successfully processed click Done and you will return to the main ACH Manager menu. ACH Origination User Guide 39

o o If the transfer is unable to process due to an error, a red Error message will appear. Click Done to return to the main ACH Manager menu. Depending on the error message, you may need to contact the bank for assistance. Once the error is corrected, you will need to resubmit the transfer. ACH Origination User Guide 40

Delete ACH Transfer Pending transfers that have a Saved status may be deleted. Select the Delete ACH Transfer option from the menu on the left and provide any specific information about the transfer you want to change, from the search menu on the right, and click Submit. Any ACH transfer matching the information provided will display in the ACH List below. The search menu is optional; if you simply click Submit without completing the search menu options, all of your transfers that are in a Saved status will appear. From the ACH List, select the transfer that you want to delete. 1. Transfer Details A screen will appear with the details of the transfer you selected to delete. Select Next to continue. ACH Origination User Guide 41

2. Warning A warning screen appears. Select Finish to continue. Select Back to return to the Transfer Details screen or Cancel to cancel the process and return to the ACH Manager main menu. 3. Delete Confirmation A confirmation screen will appear, confirming that the transfer was successfully deleted. Click Done to return to the ACH Manager main menu. ACH Origination User Guide 42

Review ACH Transfer Some ACH Transfers will require additional Client Review/Approval. User s setup with this review option will have the capability to review/approve and submit transfers to the bank for processing. Select the Review ACH Transfer option from the menu on the left and click Submit. The Review ACH Transfers window will open and the transfers that are pending approval will be displayed. From the drop down menu, you have the option to Approve or Disapprove the transfer. Once you have made your selection, select Save. To view the details of the transfer before approving, click on the transfer description. The transfer details will appear. Simply click Done to return to the Review ACH Transfers screen. You can also review/approve transfers directly from the Overview page. From the drop down menu, you have the option of Approved or Disapproved. Once you have made your selection, select Submit. ACH Origination User Guide 43

Additional Features Hold When the Hold check box is selected for a transaction, the transactions will not be processed. This allows you to exclude a specific transaction from a transfer without having to delete and add it back later. Prenote Prior to the initiation of the first credit or debit entry to a Receiver s account with an RDFI, an Originator may originate a Prenotification Entry to the RDFI. It is a zero dollar ACH entry that should be sent at least six banking days prior to the first live credit/debit entry to the receiver. A prenote s purpose is to validate the routing number and account number of the receiving bank. ACH Origination User Guide 44

Column Sorting The column sorting function enables you to sort through transfers in ascending or descending order by simply selecting the appropriate sorting criteria or clicking on the column heading. Once you have opened a file in inquiry mode, you can only sort using the column heading. The option to easily sort columns by heading provides you with the ability to quickly arrange transfers and to efficiently manage and track transfers categorically. Sort using the icon and selecting the desired criteria from the Sort By drop down menus and then click on the Sort button, to display the results. ACH Origination User Guide 45

Column Filtering Column filtering provides you with refined search capabilities while navigating through transfer lists and inquiring into transfers. Rather than navigate through a list to locate a specific transfer, the column filter functionality provides you with the ability to quickly and efficiently locate transfers with the click of a button. For example, if you are searching for a specific transfer that was saved, you can enter Saved as the Transfer Status filter, to narrow the search and more quickly locate the appropriate information. Filter using the icon and enter in the information in the column headings you are searching for and then click on Filter button, to display the results. ACH Origination User Guide 46

Frequently Asked Questions What is ACH Origination? NACHA (National Automated Clearing House Association) has adopted a standardized transaction format for moving funds electronically between financial institutions in the Federal Reserve System (the FED ) in the United States. This specification is generally referred to as the NACHA format. The Federal Reserve Bank is the primary ACH processor for inter-bank settlement entries. Financial institutions submit ACH batches to local Federal Reserve branches for distribution to the end-point financial institution. The Federal Reserve systems collect and settle all funds between the participating institutions. What is the difference between a PPD and CCD ACH transactions? Every ACH transaction is contained in a batch, which has one or more separate transactions in the file. The NACHA file standards require that the batch header record contain one of the standardized identifiers (Standard Entry Class), to distinguish what kinds of transactions are contained in the batch. PPD and CCD are the most commonly used of the approximately 20 standardized identifiers allowed by the NACHA standard. Standard Entry Class Codes Prearranged Payment or Deposit Entries (PPD) A consumer credit or debit entry initiated by an originator (usually a business entity) pursuant to a standing or single entry authorization from its customer or employee. Payroll Prearranged Deposit Prearranged Payment Cash Concentration or Disbursement (CCD) Used primarily for the intra-company concentration or disbursement of funds. May also be used to make corporate trade payments. Corporate Debit Corporate Credit Vendor Payment Remittance Child Support Corporate Trade Exchange (CTX) Supports the transfer of funds (debit or credit) with another entity in which you have an existing trading relationship. This format supports ANSI ASC X12 payment related information, which can be placed in multiple (up to 9,999) addendum records. What is an ACH Transaction Code? A code that identifies various types of debit and credit transactions. Portions of the code value can also be used to identify the account type associated with the transaction. Transaction Codes 22 Credit to Checking 23 Prenote Credit to Checking 27 Debit to Checking 28 Prenote Debit to Checking 32 Credit to Savings 33 Prenote Credit to Savings 37 Debit to Savings 38 Prenote Debit to Savings ACH Origination User Guide 47

What are some of the basic rules of timing? ACH transactions are not immediate. ACH allows the originator to determine the actual date that the credit or debit will be posted to the recipient s checking or savings account. This is accomplished by associating an effective date with every batch of transactions. In order to give the FED time to forward the transactions and settlement information to the receiving institution, the ACH system requires some lead-time in the preparation of the files containing the effective dated transactions. The FED will accept only properly formatted NACHA files within certain time ranges based on the effective date of the batch. In general, PPD or CCD Credits may be delivered to the FED no more than two days before the effective date, and PPD or CCD Debit may be delivered no more than one day before the effective date. The timing of the delivery of these files is critical and requires a warehousing system to ensure the batches are submitted on time and are available on the effective date. The processing deadline to submit your ACH transfer to the bank for next day posting is 3:30 p.m. What to do if you have exceeded your preapproved transaction limits? If you are submitting an ACH transfer that will be over your preapproved transaction limits, prior to submitting your file, you should contact your Relationship Manager at the bank to request a temporary limit increase in order to process the transactions. If you have already submitted the file and received the error message that you have exceeded your transactions limits, our ACH Department will receive notification and will seek approval from your Relationship Manager in order to temporarily increase your transaction limits. Once approval has been received, you will need to resubmit your ACH transfer. Due to the potential risk for the various types of ACH originations, the Bank evaluates the customer s creditworthiness prior to granting this privilege and will also establish ACH transaction limits. What happens if I don t have the funds available to cover the ACH transfer? You must have available funds in your account in order for the bank to process your ACH transfer. The ACH system will do balance verification when the transactions are scheduled to be sent out to the FED. If the funds are not available, the transfer will fail and will NOT originate and you will need to resubmit the transfer once funds are available. What is a balanced file? A balanced file contains an offsetting entry that automatically debits/credits your checking account to offset the credit/debit transactions in your file. Most financial institutions require balanced files since the files are selfposting, manual entry mistakes are eliminated, and if the file is in balance no transactions are missing. ACH Origination User Guide 48

Common ACH Terms Addenda Record ACH Credit ACH Debit ACH Network Batch CCD Company Batch/Header Record Effective Entry Date File File Header Record NACHA ODFI Originator PPD Prenote Receiver An ACH record type that carries the supplemental data needed to provide information concerning a payment to the Receiving Depository Financial Institution and Receiver. A transaction through the ACH network originated to pay a receiver. A transactions through the ACH network originated to withdraw funds from a receivers account. The Automated Clearing House Network is the funds transfer system governed by the NACHA operating rules, it provides for the interbank clearing of electronic entries for participating financial institutions A group of records considered as a single unit for the purpose of data processing. A Cash Concentration or Disbursement is used primarily for the intracompany concentration or disbursement of funds. May also be used to make corporate trade payments requiring minimal descriptive information. The records contained within the ACH file that describes the originator of an ACH transaction. It is identified by record type code 5. The date on which the originator intends for ACH transactions to be posted to the receivers account. A group of ACH entries. A file may contain one or more batches. The first record of an ACH file containing information necessary to route, validate and track the ACH entries contained within the file. Identified by record type code 1. The National Automated Clearing House Association that establishes the standards, rules and procedures that enable depository financial institutions to exchange ACH payments. The Originating Depository Financial Institution is a participating financial institution that initiates ACH entries, at the request of, and by agreement with its customers. ODFIs must abide by the provisions of the NACHA operating rules. An individual, corporation or other entity that has authorized an ODFI to transmit a credit or debit entry to the deposit account of a receiver. A Prearranged Payment or Deposit is a consumer credit or debit entry initiated by an originator (usually a business entity) pursuant to a standing or single entry authorization from its customer or employee. Prenotification Entries are optional, non-dollar ACH transactions that may be used by an originator to verify that the account number or an entry is for a valid account at a RDFI. An individual, corporation or other entity that has authorized an originator to initiate a credit or debit to the receiver s account at a RDFI. ACH Origination User Guide 49

RDFI Routing Number Standard Entry Class Trace Number Transaction Codes Warehousing The Receiving Depository Financial Institution is a financial institution that accepts ACH entries from its ACH operator for debit or credit to the accounts of receivers. All RDFIs must abide by the provisions of the NACHA operating rules. Nine digit number (eight digits and a check digit) that identifies a specific financial institution. Also referred to as the routing transit number or ABA number. A three character code within the company/batch header record to identity the payment types contained within an ACH batch. The standard entry class code defines the ACH formats to be used and indicates the rules and regulations that apply to the transaction. A 15 digit code that uniquely identifies each entry within a batch in an ACH file. The first eight digits of the trace number are the routing number of the ODFI. A two digit code that defines various types of debit and credit entries and indicates the type of account to which the entry is The electronic storage of debit or credit activity prior to releasing them the ACH Network or posting to accounts. For a complete guide to the rules governing the ACH Network visit www.nacha.org ACH Origination User Guide 50