ACH Payment FAQs

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1. What is the ACH Network?
ACH stands for Automated Clearing House. The ACH network is a funds transfer system governed by NACHA, the Electronics Payment Association.

2. What is NACHA?
NACHA is the National Electronic Payments Association. NACHA is responsible for writing the ACH rules, for promoting growth of the ACH, and for educating participants of the ACH.

3. How long has the ACH Network been in existence?
In the 1970’s the Special Committee on Paperless Entries (SCOPE) was formed to look into the essential needs of an automated payments system. NACHA was formed in 1974 and in 1978 local ACHs were linked nationwide.

4. Who are the participants of the ACH Network?
Originator: An originator initiates an ACH transaction against the account of a receiver pursuant to an agreement. An orginator can be either a company or an individual.
Originating Depository Financial Institution (ODFI): An ODFI has agreed to receive payment instructions from an orginator and forward those instructions on to the ACH Operator.
Automated Clearing House (ACH) Operator: The ACH Operator is the central clearing facility for ACH Payments. The ACH Operator can be operated by a private organization of by a Federal Reserve Bank.
Receiving Depository Financial Institution (RDFI): The RDFI receives payment instructions from the ACH Operator and posts these payments to the account s of the receiver.
Receiver: A receiver has agreed to allow an originator to initiate an ACH transaction against their account.
Third Party Service Provider: A Third Party Service Provider handles any aspect of the ACH process on behalf of an originator, ODFI or RDFI.

5. What role does Autoscribe have in the ACH Network?
Autoscribe is a Third Party Service Provider.

6. What services does Autoscribe provide?
Autoscribe provides originators access to a number of merchant gateway services. PaymentVision is a payment gateway that concentrates payments remitted at multiple windows so that billers are able to monitor all payment activity through a single view.

7. What are the benefits of the ACH?
Accelerated funds availability. You will have settled funds deposited into your account in as little as 24 hours.
Reduction in costs associated with processing paper checks. You will no longer have to wait in long lines at the bank to deposit checks.
Improved Cash Management. With ACH you have the ability to know which payments have settled in as little as 24 hours.

8. How can I begin to process ACH payments?
To take advantage of this feature, please contact an Account Representative today.

9. What is a Return?
A Return is an entry that has been rejected by the RDFI or ACH Operator to the ODFI because it cannot be processed. This means that the funds were not transferred between the participants of the entry. The reason for the return can be found within the return in the form of the Return Reason Code.

10. What are some common reasons for returns?
R01-Insuffient Funds
R02-Account Closed
R03-No Account/Unable to Locate Account
R04-Invalid Account Number
R07-Authorization Revoked by Customer
R08-Payment Stopped
R09-Uncollected Funds
R10-Customer Advises not authorized
R29-Corporate Customer Advises Not Authorized

11. What do I do if I receive a return?
You can choose to represent the entry if it was returned for R01 or R09. PaymentVision offers a service that will automatically represent entries returned for these reasons based on rules you set up.

12. What is a Notification of Change?
A Notification of Change (COR) is an entry initiated by the RDFI to notify the ODFI and Originator that information contained in the entry is incorrect and needs to be changed. This does not mean that the entry could not be processed and funds will be transferred between the participants of the entry.

13. What are some common reasons for Notification of Change entries?
C01-Incorrect DFI Account Number.
C02-Incorrect Routing Number.
C03-Incorrect Routing Number and Incorrect DFI Account Number.
C04-Incorrect Individual Name/Receiving Company Name.

14. What do I do if I receive a COR?
If you receive a COR you need to be sure to correct the information within 6 business days or before the next time you process an entry to that account.

15. How do I reconcile ACH Payments?
ACH entries are transmitted in batches rather than as individual transactions. You will see a credit in your bank account for the total amount of each batch minus any returned entries. Be sure to check your Returns Report in PaymentVision daily. It is important to remember that unauthorized returns from consumer accounts can be returned up to 60 days after the original settlement date. You will see a debit to your account if you were previously credited for this entry. You will generally see the return in the PaymentVision Returns Report before the debit hits your account.