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    What is an ach number in banking


    what is an ach number in banking

    In today's electronic world, we have to provide our account number for things like Home Banking Checking & ATMs Direct Deposit/ACH/Check Re-Ordering. Find the bank routing number for checks and ACH transactions including direct deposit or automatic payments in the account information and settings menu. ACH transfers are electronic, bank-to-bank money transfers processed through the You may be limited in the number of ACH transactions you can initiate.

    What is an ach number in banking -

    Payment Trace Request (PTR)

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    Case Type Description

    Glossary of ACH Terms

    ACH - The Automated Clearing House network

    ACH NETWORK - The funds transfer system governed by the rules of the National Automated Clearing House Association (NACHA) which provides for the inter-financial institution clearing of electronic entries for participating financial institutions.

    ACH OPERATOR - The central clearing facility that receives entries from the Originating Depository Financial Institutions (ODFI), distributes the entries to Receiving Depository Financial Institutions (RDFI), and performs settlement functions. It provides services to DFIs on a local, regional or national basis. ACH Operators may be private companies or offices of a Federal Reserve Bank. The ACH Operator is responsible for processing electronic entries received from other ACH Operators or ODFIs.

    AUTHENTICATION – A data security technique used to ensure that the professed sender of information or a payment order is actually who they claim to be.

    AUTHORIZATION - A written agreement signed by an employee or customer, or an authenticated electronic process, that allows the posting of debits or credits arising from ACH transactions to the employee's or customer's account.


    BANKING DAY - Any day on which the DFI is open to the public for carrying on substantially all its banking functions.

    BUSINESS DAY - A calendar day other than a Saturday, Sunday, or Federal holiday.


    COMPANY/BUSINESS - An individual, sole proprietorship, partnership, or corporation engaged in a commercial enterprise or venture.

    CONSUMER ACCOUNT - Means an account held by a DFI and established by a natural person primarily for personal, family or household and not for commercial purposes.

    CORPORATE CREDIT OR DEBIT (CCD) - An automated corporate payments application that transfers funds between corporate accounts for collection purposes (concentration) or for disbursement purposes. In most cases it is used as an intra-company application and used as a cash management technique by the corporate community. This type of payment can carry one addenda record of information formatted based on basic ANSI X syntax. When this is done it is referred to as a CCD+.

    CREDIT ENTRIES - An entry to the record of an account to represent the transfer or placement of funds into the account.


    DEBIT ENTRY - An entry to the record of an account to represent the transfer or removal of funds from the account.

    DIRECT DEPOSIT - A deposit made to a consumer's account at a receiving depository institution through the ACH. Typically refers to payroll deposits, social security payments and pension payments.

    DIRECT PAYMENTS - A charge to a receiver's account at the receiving depository financial institution through the ACH. Examples of direct payments include insurance, utility, mortgage, and car payments.


    EFFECTIVE ENTRY DATE - The date the originating business or individual has requested that the entry posts to the receiver's account.

    ELECTRONIC AUTHORIZATION - An alternative means of authorization for ACH transactions. Electronic authorizations must be displayed in such a manner that the consumer can read the authorization, create a record or hard copy of the authorization (so the consumer can refer back to it) and must be authenticated in a similar manner to that in which a signature authenticates a written authorization (i.e., by a digital signature, PIN, or other code which uniquely identifies that consumer).

    ELECTRONIC FUNDS TRANSFER - Any transfer of funds initiated through a terminal, telephone, computer, or magnetic tape for the purpose of instructing or authorizing a financial institution to debit or credit an account.

    ELECTRONIC SIGNATURE - An electronic sound, symbol or process attached to or logically associated with an agreement, authorization or other record and executed or adopted by a person with the intent to sign the record.


    FEDERAL RESERVE SYSTEM - The "central bank" for the U.S. Made up of twelve district banks. All national banks are required to be members. Other institutions can choose to be members.

    FILE - A group of ACH entries with specific control totals. A file may contain many batches of entries. A file is the smallest unit of information that may be sent to an ACH from an originator or delivered to a receiver. All the information necessary to post transactions is contained within a file.


    INDIVIDUAL IDENTIFICATION NUMBER - The number used by the originating business to identify the individual being paid (direct deposit) or charged (automatic debits).


    NACHA - The national ACH association that establishes the standards, rules and procedures that enable financial institutions to exchange ACH payments on a national basis.

    NOTIFICATION OF CHANGE (NOC) - Information sent by a receiving institution informing an originating institution and the originating business of an error in the information necessary to handle the transaction electronically. The correct information is included along with the incorrect information to assist the originator in making the change. Notifications of change are commonly referred to as NOCs, however the standard entry class code for these entries is COR.


    ORIGINATING DEPOSITORY FINANCIAL INSTITUTION (ODFI) - A participating financial institution that originates ACH entries. The entries may be originated internally or from an external source, such as a company.

    ORIGINATOR - Any individual, business, or other entity that initiates entries into the ACH.


    PRE-ARRANGED PAYMENT OR DEPOSIT (PPD) – The Standard Entry Class Code for those consumer transactions made through the ACH that arise from a prior authorization made by a customer and that normally occur on a periodic basis. PPD is the standard entry class code used for many types of ACH entries including direct deposit and insurance premium payments.

    PRENOTIFICATION ENTRIES - Also known as Prenotes, this is an optional ACH entry with a zero dollar amount and a special transaction code. If you choose to prenote, you must follow the rules. These entries are to be sent by the originating institution at least 3 banking days before the first live transactions are to be sent. Receiving institutions are required to check the transit/routing number and account number fields to ensure the entry is postable.

    PROCESSING DAY - Any day that a member institution is open to the public to conduct business or that an ACH facility is being operated.


    RECEIVER - An individual, corporation, or other entity that has authorized a company or an originator to initiate a credit or debit entry to a transaction account held at a receiving financial institution.

    RECEIVING DEPOSITORY FINANCIAL INSTITUTION (RDFI) - The final destination of a transaction. The RDFI may receive entries directly from an ACH or may have their entries processed through a processing center or service bureau, which is the actual receiving point.

    REG E - Regulation E provides a basic framework that establishes the rights, liabilities and responsibilities of participants in electronic fund transfer systems such as automated teller machine transfers, telephone bill-payment services, point-of-sale (POS) terminal transfers in stores, and preauthorized transfers from, or to, a consumer's account (such as direct deposit and social security payments). The term "electronic fund transfer" (EFT), generally refers to a transaction initiated through an electronic terminal, telephone, computer, or magnetic tape that instructs a financial institution either to credit or to debit a consumer's asset account. avrstudio.us 

    RETURN ENTRY - An entry that has been returned to the ODFI by the RDFI because it cannot be posted. The reason for each return is included with the return in the form of a "return reason code".

    REVERSING FILE OR ENTRY/REVERSAL – A credit or debit Entry that reverses an Erroneous Entry, or a file that reverses all Entries in an Erroneous File.

    ROUTING/ TRANSIT NUMBER - A 9-digit number (8 digits and a check digit) that identifies a specific financial institution. These numbers are assigned by the Thomson Financial Publishing Corporation and are listed in its annual publication, "Key to Routing Numbers".


    SAME DAY ENTRY– An Entry, other than a debit Entry, in which the Effective Entry Date is the same Banking Day as the date on which the Entry is Transmitted by the ODFI to its ACH Operator by the deadline for same-day processing and settlement. A Same Day Entry must be for an amount of $, or less. An IAT Entry cannot be a Same Day Entry. An Entry with a stale or invalid Effective Entry Date will also be a Same Day Entry if it is transmitted by the ODFI to its ACH Operator by the deadline, and is otherwise eligible for same-day processing and settlement.

    SETTLEMENT - The transfer of funds between two parties in cash, or on the books of a mutual depository institution, to complete one or more prior transactions made subject to final accounting.

    SETTLEMENT DATE - The day on which actual funds settlement occurs. Funds settle in all cases through the Federal Reserve settlement system either directly or indirectly through a correspondent account.

    STOP PAYMENT ORDER - A directive by an account holder to its financial institution not to pay a particular ACH transaction.


    TRACE NUMBER - A unique number assigned to every ACH entry by an Originating Depository Financial Institution which identifies that entry within a specific ACH file. The first 8 digits of the trace number are the transit/routing number of the ODFI and the last 7 digits are sequence numbers assigned by the originator.

    TRANSACTION CODE - Also known as a Tran code, this is the two digit code in the ACH record that determines whether an entry is a debit or a credit to a savings, DDA, general ledger, or loan account.


    UCC 4A - The portion of the Uniform Commercial Code which deals with certain funds transfers including ACH credit transactions not subject to the Electronic Funds Transfer Act or Regulation E. This law outlines the protections and responsibilities given to the parties to wholesale credit transactions and sets the standards for commercially reasonable security procedures to be used in conjunction with those transactions.

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    Glossary of Terms

     

    The following are some of the terms commonly used for ACH Direct Payments & Deposits.

    A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z

    A

    ABA Routing Number

    An ABA Routing Number is a nine-digit number that identifies a specific financial institution. This is the National Clearing System numbering system used in the United States.

    ACH (Automated Clearing House)

    ACH term used to describe electronic payments. Also referred to as Direct Deposits, Direct Payments, and Pre-Authorized Debits.

    ACH Format

    The ACH record format specifications described in the NACHA Operating Rules and Guidelines document are the accepted and warranted format standards for payments delivered through the ACH Network.

    Account Ownership Change

    An Account Ownership change occurs when you move your ACH Direct Payments & Deposits Service from one entity to another.

    When such action is taken on your ACH Direct Deposits Service, recalculations are performed on the pending payments belonging to all other ACH Direct Deposits Services that are still attached to the existing entity. By doing so it may release "in Excess" payments to "Valid".

    Recalculations are also done on the ACH Direct Deposits Service that have been moved to the new entity. By doing so it may cause some pending payments with a "Valid" status before the move of that ACH Direct Deposits Service to now be "in Excess ". You will be notified by email and the payments in Excess will be reported on the Daily Limit- Payment Details report.

    Addenda Record

    An ACH record type that carries the supplemental data needed to completely identify an account holder or provide information concerning a payment to the Receiving Depository Financial Institution (RDFI).

    Approval Authority

    A specific limit set up for approvers within your organization to release direct payments and deposits for processing.

    Approval Rules

    These are rules set by your organization, and define the number of approvers needed to authorize payments and deposits within specified dollar amount ranges.

    Approvers

    Those are the person(s) that have been authorized by your organization to approve direct payments and deposits for processing.

    Available Daily Limit for Client ID

    The sum of the Daily Limit and any Temporary Limit. This applies to RBC ACH Direct Deposits Service clients set up with a Daily Limit option.

    Authorized Signing Officers

    Authorized signing officers are the persons within your organization that have the power or authorization to sign on behalf of your organization.

    B

    Backup

    Backup is the process within your own organization to copy your input files for safekeeping.

    Block or Block of Payments

    A set of payments in an input file that has a common Payment due date.

    Blocked File

    A blocked file is an input file that has been received and is blocked. For example, a file that cannot be processed because its File Creation Number is duplicated or contains invalid characters. Upon your instructions your input file can be either unblocked for processing or deleted.

    C

    CCD (Corporate Credit or Debit)

    CCD is a Standard Entry Class Code (SEC) used to identify a Corporate Credit or Debit payment type. That is part of the ACH Company/Batch Header Record.

    Canadian Payments Association (CPA)

    This association is now referred to as Payments Canada. They are the national association that establishes the standards, rules and procedure for the interbank clearing of electronic entries for participating financial institutions in Canada. The system that direct payments and direct deposits flow through is referred to as the Automated Transfer System (AFT).

    Canadian Payment Association CPA Format

    The CPA record format specifications as described in the CPA Rules are the accepted and warranted format standards for payments delivered between financial institutions in Canada.

    Certificate Administrator

    The Certificate Administrator is appointed or sponsored by your organization's authorized signing officers to be responsible for issuing and revoking digital certificates specific to RBC Express.

    Centralized Designations

    Clients choosing not to have any subsidiary designations are termed Centralized. In this scenario, you have one control account that produces transaction files with the same Client Account Number throughout (i.e. on the Header, Detail records, and Trailer records). You also have one return account, which may be different from the control account.

    Client

    Client means a public or private sector organization using RBC ACH Direct Payments and Deposits Services.

    Client ID or Company ID

    This is the same as a Client Number or Client Account Number.

    Client Number or Client Account Number

    Client number and client account number have the same meaning. Both represent a unique client profile identification number that RBC Royal Bank assigns to each client. It is a 10 digit client number that contains a six digit basic number, followed by four zeros if there is no subsidiary. It is used to access your services.

    Client Support Centre

    Client Support Centre or Cash Management Client Support Centre is your contact for any assistance you may need with regard to your ACH Direct Payments or Direct Deposits Service.

    Client, You, and Your

    Client, you and your have equal meaning and refer to the Client or the Client's employees, representatives or agents using or operating the Service.

    Computer Centre

    The location where your input files are processed. There are 3 Computer Centres located across Canada – Ontario (OCC), Quebec (QCC) and British Columbia (BCCC).

    Contracts

    Contracts are groups of basic consumer or receiver information. It also stores contractual and historical information, such as:

    • Original contract amount,
    • Deposit amount,
    • First payment amount,
    • Regular payment amount,
    • Final payment amount,
    • Total amount paid to date,
    • Number of Payments to date,
    • Number of payments due,
    • Frequency (weekly, bi-weekly, monthly, twice monthly, bi-monthly, quarterly, semi-annually and annually)

    This feature is located in RBC Express ACH Record Manager.

    Control Account

    The control account or deposit account is the account that is debited or credited with the proceeds of your valid and delivered direct payments and deposits.

    Control Branch

    The RBC Royal Bank branch where your account is located. This branch will handle all the financial aspects of your account.

    Correspondent Bank

    As part of the International ACH Transactions addenda records, if an ACH payment was processed through another Financial Institution, then the Correspondent Bank Addenda record should accompany the payment.

    Customer or Receiver

    The party receiving the proceeds of the direct deposit, or the party who will be debited with the direct payment, as ordered by the Client, is the Receiver.

    Customer Number or Customer Identification Number or Receiver Identification Number

    These terms have the same meaning and represent a unique number that you assign to identify each of your customers. That number can be alphanumeric and is limited to 19 digits for payees or recipients located in Canada and 15 digits for payees or recipients located in the United States.

    D

    Daily Limit

    Your Daily Limit is the maximum total value of outstanding settlement obligations that RBC will assume for your organization. It is the maximum value of outstanding direct deposits that RBC has delivered, will deliver, or will have delivered in advance of your funding those direct deposits. RBC Royal Bank establishes your Daily Limit. A separate Daily Limit is established for each currency.

    Daily Limit Date

    The Daily Limit Date(s) spans from the Select Date of a direct deposit to its Value Date. In other words, it covers the days that it takes to deliver a direct deposit payment to the receiving financial institution to the day that the funds are available to the recipients.

    Data File

    Data Files are flat files containing information from your payment input file, payments that have been reversed and returned items. You may use these files to update your records in an automated fashion.

    Data Transmission

    The electronic exchange of information between two data processing points.

    Debits

    Debits or Direct Payments are electronic debit payment transactions or pre-authorized debits that represent the transfer or removal of funds drawn on specified payors’ account held at a financial institution.

    Deleted File

    A deleted file is an input file that has been received, is blocked or rejected and upon your instructions is deleted; the system will automatically delete the file and NOT process any transactions.

    Deposits

    Deposits or Direct Deposits are electronic credit payment transactions that represent the transfer or placement of funds to be deposited to specified payees’ accounts held at a financial institution.

    Detail records

    An ACH record type that carries the data needed to identify an account holder and provides banking information concerning a payment to be sent to the account holder at the financial institution.

    Destination Country

    The country that a customer payment is to be made. Payments can be made to either Canada or the United States.

    Destination Currency

    The currency that a customer payment is to be made. Payments can be made in either Canadian dollars (CAD) or US dollars (USD).

    Digital Certificate

    Instead of physical signatures, RBC Express uses electronic credentials to verify users. This is done through Public Key Infrastructures (PKI), a secure digital certificate technology that uses encryption keys to authenticate user identities. Each user, including Service Administrators, must have a digital certificate to gain access to the web-based services in RBC Express.

    Direct Deposits

    An ACH service that provides for the electronic transfer of funds directly into the account of a payee.

    Direct Payments

    An ACH service that provides for a method of collection upon authorization from the payor for the transfer or removal of funds drawn on specified payors’ account held at a financial institution. Refer to Pre-Authorized Debits (PAD).

    Dropped File

    A "dropped file” is an input file that has been received, is blocked for more than 2 business days and has not been deleted or unblocked, the system will automatically drop the file and NOT process any transactions.

    Due Date

    The date a payment is to be made.

    E

    Electronic Payments

    Direct Payments or Deposits that are exchanged via Data Transmission between two data processing points.

    Electronic Payments Network (EPN)

    EPN is the RBC’s ACH Operator for payments that are sent to the United States for processing.

    Electronic Credentials

    Each Individual using RBC Express ACH Direct Payments & Deposits requires a digital certificate in order to gain access to services, which enables RBC to accept digital signatures as electronic credentials to replace physical signatures on paper documents.

    F

    Field

    Specific information within a file layout that requires completion. Information must be supplied as instructed or it cannot be processed.

    File

    A group of ACH payments data information to be processed and sorted for delivery to financial institutions in Canada and the United States.

    File Creation Number

    This is a mandatory 4 digit number that you assign to your transaction file. The File Creation Number must be different from the previous 9 numbers submitted for processing. When submitting a test file, the FCN must be “TEST”.

    File Limit

    The file limit assigned by your organization is the maximum dollar value of each input file submitted for processing. If your file upon receipt exceeds this limit, the file will block and upon your authorization the file will be processed (unblocked) or deleted.

    Flat Files

    Flat Files are data files available to ACH Direct Deposits & Payments clients, which can be used to automatically update their systems or produce internal reporting. Data Files are available for Input Records, Returned Items and Reversed payments.

    Financial Institutions

    Any financial institutions qualified to receive any ACH entries that agree to abide by the CPA Rules and/or the NACHA Operating Rules and Guidelines.

    G

    GRADS Service Account Number (GSAN)

    The Global Receivables & Disbursements Service Account Number (GRADS) uniquely identifies you within this system, by service. This 10 digit number is also referred to as the client Account Number and Company ID (described above) or GSAN number.

    H

    Header record

    The Header record is the first ACH record type on your file layout that carries the data needed to identify the originator and the destination of the payments.

    I

    IAT

    IAT is a Standard Entry Class Code (SEC) used to identify an International ACH Transaction Credit or Debit payment type. That is part of the ACH Company/Batch Header Record and is used for all payments that are destined to account holders in the United States.

    In Excess payments

    The sum of payments due for a given settlement date currently exceeding the available Daily Limit. This applies to ACH Direct Deposits Service only.

    Input Amount

    The amount of the payment that is in the currency of the service.

    Input Data

    Payment information sent to RBC Royal Bank for processing in a specified format.

    Input file

    A group of ACH payment information to be processed and sorted for delivery to various financial institutions.

    Invalid Transactions

    Invalid transactions are those that fail to pass RBC Royal Bank‘s data validation process.


    J

    K

    L

    Limit Available

    The unused portion of the available Daily Limit that is still available for a given date. This limit only applies to the ACH Direct Deposit Service.

    Limit Used

    Portion of the available daily limit reserved for the settlement of transactions due on this date.

    M

    Mass Request

    A Mass Request refers to a request to be completed on a range of payments.

    Mass Reversals

    A Mass Reversal refers to a range of payments that have already been processed and delivered to financial institutions and such payments upon your authorization and within the required time deadlines are now being reversed on a best effort basis.

    Media

    A method of sending or receiving information. Data Transmission or RBC Express ACH Direct Payments and Deposits are the two media used for exchanging payment information.

    N

    National Automated Clearing House Association (NACHA)

    The national association in the United States that establishes the standards, rules and procedures that enable financial institutions to exchange payments on a national basis.

    Non-Operating Subsidiary

    Only one control account can be designated for the parent and the subsidiaries. One control account oversees all subsidiaries’ accounts and their activities.

    One transaction file is produced by the client and covers all subsidiaries. The Client Account Number for the Header and Trailer records will be that of the Parent Client Account Number (XXXXXX), The Detail records will contain the various Subsidiary Account Numbers (XXXXXX, XXXXXX, etc).

    However a separate account may be designated for each subsidiary’s returned items. Reports are produced for the parent company.

    Non Sufficient Funds (NSF)

    A payment transaction that has been returned by the receiving depository financial institution with a return reason code of

    Notification of Change (NOC) for USA-FI

    This applies to payment information received by a depository financial Institution in the United States (RDFI) to notify the originating depository financial institution (ODFI) that previously valid information for a receiver has become outdated or that information contained in a prenotification is erroneous. The standard entry class code is COR.

    Notification of change ( NOC)

    Notification of payment information change (NOC) received from financial institutions in Canada with regard to bank, branch and account number that occurs as a result of branch closures, mergers or acquisitions. NOC applies to both Canadian and US dollars accounts.

    O

    Operating Subsidiary

    Under this designation each subsidiary can have a customized level of control. Separate transaction files can be produced for each subsidiary, but may be sent in with the same transmission. Each subsidiary must submit their file with their Client Account Number consistently throughout the file. A separate header, detail and trailer record must be provided. Each subsidiary may have a different control account from the parent client and each subsidiary nay have a separate return account designated for their returned items. An output report/data file can be produced separately for each subsidiary, or a file may be produced covering all subsidiaries.

    Originating Depository Financial Institution (ODFI)

    A participating financial institution that initiates payments at the request of its clients. It is the financial institution that is sending the payment.

    Originator

    As the party that initiates transactions, the Client is the Originator.

    Output Report

    Mandatory/Optional and On-Request reports that are produced as part of the ACH Direct Payments and Deposits Service. Those reports are then transmitted electronically to you or are available on RBC Express for viewing.

    P

    PPD

    It is a Standard Entry Class Code (SEC) that is being used to identify a “Prearranged payment and Deposit Entry payment type used for personal payments destined to the United States. That is part of the ACH Company/Batch Header Record.

    Pass phrase

    A Pass phrase is a password that allows access into RBC Express. Each user has a unique Pass phrase to ensure optimal security.

    Payees

    A payee is the person that issues an ACH Direct payment and whose account is to be, or has been, credited with the value of that ACH Direct payment.

    Payment Due Date

    The date that funds are to be credited to or debited from the receiver’s account. The payment date is the same as the Value date only if we receive your payments in time for the regular scheduled select date.

    Payment Distribution Service (PDS)

    Payment Distribution Service refers to ACH Direct Deposit Service.

    Payment in Excess

    The sum of payments due for a given settlement date currently exceeding the available Daily Limit. This applies to ACH Direct Deposits Service only.

    Payment Register

    This is an optional report that is produced as part of the ACH Direct Payments & Deposits Service. It lists all valid payments and valid prenotes received on your input file.

    Payment Short Name

    The payment short name is a 15 digit field that is part of your company payment record to identify the originator of the payment. This field must clearly identify the originator of the payment through the use of a name that is known to and readily recognized by the receiver of the payment. This is the name that will appear on the receiver’s bank statements. If the Payment Short Name field is left blank, it will default to the client short name as indicated on your Client Profile.

    Payments Canada (Formerly known as Canadian Payments Association (CPA))

    The national association that establishes the standards, rules and procedure for the interbank clearing of electronic entries for participating financial institutions in Canada. The system that direct payments and direct deposits flow through is referred to as the Automated Transfer System (AFT).

    Payor

    A payor is the person who authorizes the issuance of an ACH Direct Payment and whose account to be, or has been, debited with the value of that ACH Direct payment.

    Person

    A person means a natural person, member, business or other legal entity.

    Pre-Authorized Debits (PADs) Service

    Pre-Authorized Debits (PADs) Service refers to ACH Direct Payments Service.

    Prefund or Prefunding

    A service option that is available for the ACH Direct Deposit Service which requires you to fund your direct deposits in advance. The indicator on your client profile will be set up as “Prefund”.

    Prenotification

    A non-dollar entry (zero value) that may be sent by an originator to receiving depository financial institutions in the United States to alert that a live dollar transaction will be forthcoming and that verification of the receiver’s account number is required.

    Processing Date

    The processing date is the date that the file is run in the Computer Centre.

    Payment Details

    Specific information required to process a transaction to the receiver. Information will include such fields as name, bank number, branch number and account number.

    Public Key Infrastructures (PKI)

    A system that provides the basis for establishing and maintaining a secure and trustworthy networking environment through the generation and distribution of electronic keys and certificates.

    Parent client

    Relates to Operating and Non-Operating Subsidiary designations. The first profile opened is always the Parent client number. For example, A Parent Client number always ends in four zeros –

    Q

    R

    RBC Standard Format (STD )

    RBC Royal Bank’s proprietary record format acceptable for submitting payments to financial institutions in Canada and the United States. For clients who process USA Destined payments on behalf of other Financial Institutions, it is recommended that you use ACH format to ensure all Correspondent Bank Addenda Records are available to you.

    Receiver

    The party receiving the proceeds of the direct deposit, or the party who will be debited with the direct payment, as ordered by the Client, is the Receiver.

    Receiving Depository Financial Institution (RDFI)

    Any financial institution qualified to receive payment transactions.

    Receiver Authorizations/Payor Agreements

    A written agreement authorizing you to make direct deposits or issue direct payments to an entity’s accounts at financial institutions in Canada or in the United States.

    Rejected File

    A rejected file is an input file that has been received by RBC could not be processed and must be re-submitted, if this file is not deleted, the system will automatically drop the file on the same day the input file is received and NOT process any transactions.

    Report Break

    The breakdown of a customer number into discreet segments for sub-totalling purposes.

    Report Roll-up

    This term only applies to Operating Parent and Subsidiaries. An output report/data file can be produced separately for each subsidiary, or may be produced for the Operating Parent covering all subsidiaries. Your client profile will need to be customized depending on your needs.

    Required Additional Limit

    The amount of additional daily limit required to permit full processing of payments in excess that are due for settlement on this date.

    Representment

    Re-issuing ACH Direct Payments returned as Non Sufficient Funds (NSF). Payments returned as “NSF” can only be represented once and must be represented immediately or within 20 business days. This service option only applies to RBC ACH Direct Payments Service.

    Return Account

    The account that will be debited or credited for the return of any payment transactions that could not be processed.

    Returned Items

    A payment transaction that is being returned to ODFI by the RDFI because it cannot be processed.

    Retry process

    Identifies a specific financial institution. In Canada this is made up of the bank and branch numbers. In the United States, this is the ABA Routing number. This is done every one the half hour until the correction occurs. The file will be dropped off on the end of the second business day after receipt of your input file.

    RSA SecurID® Token

    Each user with payment approval authority will be issued a Security Token or RSA SecurID® Token by RBC Royal Bank. This small device shows a unique, one-time sequence of 6 numbers that change every 60 seconds that is referred to as a Token Code or Token Value. RBC Express will ask for this sequence of numbers before payments can be approved.

    S

    Sanction Lists

    These are lists of entities and individuals controlled and maintained by the U.S Government (United States Treasury’s Office of Foreign Assets Control “OFAC”) and Canadian Government (Office of the Superintendent of Financial Institutions “OSFI”) that prohibit financial institutions from providing financial services to those entities and individuals on those sanction lists.

    Screen or Screening

    A term used when we are screening, checking or comparing your payments destined to the United States and to Canada originating from a foreign country against the defined sanction lists as indicated above under “Sanction Lists”.

    Standard Entry Class Code (SEC)

    Three character code used within an ACH Company/Batch Header record for payments destined to the United States that identifies the type of payment. All non-tax payments destined to or received from the United States must have a SEC code of IAT.

    Security Token or RSA SecurID® Token

    Each user with payment approval authority will be issued a Security Token or RSA SecurID® Token by RBC Royal Bank. This small device shows a unique, one-time sequence of 6 numbers which changes every 60 seconds. RBC Express will ask for this sequence of numbers before payments can be approved.

    Service

    Service consists of the transfer of funds to specified payees (direct deposits) or consists of the processing of pre-authorized debits by RBC on behalf of the Client, drawn on specified payors (direct payments).

    Service Administrator

    A Service Administrator is responsible for setting up and managing how your organization uses RBC Express. This individual can authorize user access and set the level of user access within the system. An organization can appoint more than one level of user access within the system. An organization can appoint more than one Service Administrator.

    Set Intervals

    Set interval means occurring at specified, set or predictable periods or times.

    Select Date

    The latest date when RBC must deliver a direct deposit to the receiving financial institution to ensure they make funds available to the receiver on the next business day. For example, if a transaction is dated July 28, RBC must deliver the transaction to the receiving financial institution on July 27th to ensure that the receiver has access to the funds on July 28th. Files received after the Select Date will be processed for the next business day. In Canada, funds are made available to both consumers and businesses, while in the United States funds are only made available to consumers.

    Settlement obligations

    The maximum dollar value of payments that are due on a specific date that the bank will undertake to settle on your behalf.

    Subsidiary

    A subsidiary may be a branch or a department or other unit or service for which you require separate accounting and reports.

    Suspended Payment

    A suspended payment is a payment destined to the United States or to Canada originating from a foreign country that has been matched against the sanctions lists and is on hold until the investigation is completed.

    T

    Temporary Limit

    It is an additional daily limit established for a specific period to accommodate provisional increases in the value of payments. You must contact your RBC Royal Bank Account Manager well in advance of when you will need the increased Daily Limit.

    Token Code or Token Value

    This is the 6 digit sequence of numbers shown on the Security Token or RSA SecurID® Token every 60 seconds. For increased security, RBC Express requires users to enter two verifying credentials – a Passphrase and a token vale – for payment approvals.

    Transaction

    A transaction is an order from you to the Bank to issue either a direct deposit or a direct payment.

    Transaction Limit

    It is a maximum amount per payment assigned by our organization to reduce the exposure to accidental or unauthorized payments.

    Transmission

    The electronic exchange of information between two data processing points.

    Trailer Records

    The Trailer record is the last record type part of your file layout used to delimit the end of your file layout. The trailer record identifies the total number and the dollar values of all transactions.

    Two-Factor Authentication

    A requirement that the individual(s) in your organization assigned to approve a transaction or a batch of transactions require two credentials to digitally approve payment instructions. These credentials are commonly referred to as “something you know” (the individual pass phrase) and “something you have” (Token Value- RSA SecurID Tokens). The individual(s) will be prompted to enter those two credentials before payments can be approved.

    U

    Unblocked File

    An unblocked file is an input file that has been received, is blocked due to various conditions such as File Creation number duplicated and upon your instructions is unblocked. After unblocking your input file, the system will automatically process your input file.

    User

    A User is an individual designated by the client as a holder of a digital certificate issued by RBC and who is authorized to act on behalf of the client. All RBC Express users must have an RBC Digital Certificate.


    V

    Value Date

    The date when direct deposits are available to the receivers, which is also when you fund or settle the direct deposits. For direct deposits with a due date of today or in the past, the Value Date could be today or tomorrow. For ACH Direct Payment Service, the Value Date represents the date a payment is debited to the payor’s account and credited to your account. For payments with a due date in the past, this is the date received at the payor’s financial institution.

    Valid Transactions

    Valid transactions are those that successfully pass RBC Royal Bank’s data validation process.

    Validate

    The verification of certain fields on your input file to ensure that the specifications specified on the file layouts have been adhered to. It also includes validating bank number, branch transits and the format of the account number. It does not include validating if the account is in the name of the payee/payor.

    W

    We, Bank, Royal Bank, Royal Bank of Canada, RBC and RBC Royal Bank

    We, Bank, Royal Bank, Royal Bank of Canada, RBC and RBC Royal Bank all refer to Royal Bank of Canada.

    X

    Y

    Z

     
    Источник: avrstudio.us

    What Does ACH Stand For?

    In banking, ACH stands for Automated Clearing House, which is a network that coordinates electronic payments and automated money transfers.

    ACH is a way to move money between banks without using paper checks, wire transfers, credit card networks, or cash.

    References to ACH can mean several things, depending on where you see it.

    On Sank Statements

    On statements or in your transaction history, ACH means that an electronic payment has been made to or from your account using your checking account information. Common examples of ACH transfers appear below. For an ACH transfer to move funds to or from your account, you must authorize those transfers and provide your bank account and routing numbers.

    On Your Bills

    When viewing a bill, ACH means you have the option to pay your bills electronically. Other terms include eChecks, EFT, or AutoPay. Instead of writing a check or entering a credit card number every time you pay, you can provide your checking account details and pay directly from your account. In some cases, you control when payment takes place (the funds only move when you request a payment). In other cases, your biller automatically pulls funds from your account when your bill is due, so you need to be sure you have funds available in your account.

    Keep an eye on your accounts and when various payments go through, even though payments are automatic.

    What Does ACH Mean?

    What, exactly, does Automated Clearing House refer to? A definition of the terms might help:

    Automated

    The ACH system consists of computers working together to process payments automatically. There’s no need to manually handle payments (on your part or the biller’s). ACH is a “batch” processing system that handles millions of payments at the end of the day.

    Clearing House

    The network uses two central “clearing houses.” All requests run through either The Federal Reserve or The Clearing House. This allows for efficient matching and processing among numerous financial institutions.

    Examples of ACH Transactions

    You probably have more experience with ACH than you realize. Individuals and businesses use ACH for everyday transactions such as:

    • Direct deposit of your wages (from your employer to your bank account)
    • Automatic payment of recurring bills such as energy bills, insurance premiums, and Homeowners Association (HOA) dues. When you provide a voided check to your biller, you’re setting up ACH.
    • Payments from businesses to vendors and suppliers
    • Transferring money from your brick-and-mortar bank to your online bank

    As with any technology, using ACH means embracing the pros and cons. Let’s review those below.

    Pros
    • FOR CUSTOMERS:

    • Get paid faster with an automated payment, and without waiting for a check to clear

    • Automating bill payments to avoid late fees and missed payments

    • Making online purchases without having to use a credit card or check

    • Minimize paper records that carry sensitive banking information

    • FOR BUSINESSES:

    • Makes money transfers easy with minimal labor and cost

    • Allows employee payments without printing checks, stuffing envelopes or paying for postage

    • Facilitates regular customer payments without having to transport actual paper checks to the bank

    • Has lower fees than credit card payments

    • Electronic process makes vendor and supplier payments easier and faster, while keeping electronic records of all transactions

    • Automated transactions may be less prone to error than a manual monthly task

    Cons
    • FOR CUSTOMERS:

    • Companies have direct access to your bank account

    • Auto payments are deducted whether or not you have the funds in your account, which can trigger overdraft fees

    • FOR BUSINESSES:

    • Allows other companies to have a direct link to your bank account

    • Customers can reverse their payments, although not as easily as with a credit card

    • Must monitor the transactions for fraud, as business accounts have fewer protections than consumer accounts

    • Companies may need to buy software and invest in training to process ACH payments

    What Does ACH Do for Consumers?

    If you’re an individual, you may enjoy:

    • Getting paid by your employer quickly, safely, and reliably. You avoid the hassle of waiting for your paycheck to arrive or depositing the check at your bank.
    • Automating your payments, so you never forget to pay (and your payments arrive on time)
    • Making purchases online without using a check or credit card. You pay quickly and avoid credit card processing fees.
    • Minimizing the number of pieces of paper floating around with your bank account information. This helps reduce the chances of fraud in your accounts. 

    The main drawback for consumers is that setting up ACH provides businesses with direct access to your checking account. They take the money to pay your bills whether you’re ready to pay or not. If you’re short on funds, you might prefer to pay a different way. Alternatively, you might want to prioritize certain payments when you have limited funds, paying only the most urgent bills first.

    For more details on how consumers use ACH, read about setting up ACH debit.

    What Does ACH Do for Businesses?

    If you run a business, you benefit from:

    • A low-cost, non-labor-intensive way to transfer money
    • Paying employees without the need to print checks or pay postage
    • Receiving customer payments easily, quickly, and regularly—no more cash
    • Processing fees that are lower than credit card swipe fees
    • Getting paid by vendors—or paying suppliers—in a way that’s safe and easy to track (there’s an instant electronic record of every transaction)

    Businesses face the same problem as consumers: There’s a direct link to your checking account, and any errors or unexpected withdrawals can cause problems. What’s more, businesses can face the issue of customers reversing charges and taking back payments. That being said, it’s harder to reverse an ACH payment than it is to reverse a credit card payment.

    Businesses need to be especially vigilant about monitoring for fraud. Consumers enjoy a high degree of protection against errors and fraud in their checking accounts, but business accounts do not receive the same level of protection. If funds leave your account, it may be your responsibility to recover the funds (or take the loss).

    Finally, businesses may need to purchase software or invest time and resources into transitioning to ACH transfers. However, they’ll most likely recoup those costs easily over the long run.

    For more details on how businesses use ACH, read about ACH processing.

    Computers That Talk

    The ACH system is a network of computers that communicate with each other to make payments happen. Two sets of computers are at work for each payment:

    • The side that creates a request
    • The side that satisfies the request (assuming all goes well, which it usually does)

    ODFI

    Using direct deposit as an example, an employer (through the employer’s bank) creates a request to send money to an employee’s account. The employer is known as the Originator, and the employer’s bank is the Originating Depository Financial Institution (ODFI). That request goes to an ACH Operator, which is a clearinghouse that gets numerous requests throughout the day, and then routes the request to its destination.

    RDFI

    The receiving financial institution is the Receiving Depository Financial Institution (RDFI), which adjusts the account of the final account holder—the employee receiving pay in this case—who is known as the Receiver.

    Types of Transactions

    ACH transactions occur in two forms:

    1. Direct deposits are payments to a receiver, such as wages from your employer or Social Security benefits paid into your checking account.
    2. Direct Payments are requests to pull funds from an account. For example, direct payments take place when billers deduct utility bills automatically from your checking account.

    Currently, ACH transactions don’t happen in real-time. Instead, banks use “batch processing” to process the entire day’s worth of requests at once. As a result, you don’t get paid immediately after your employer authorizes payment. Instead, the transaction takes one or two business days to move through the system. There are plans to speed up ACH payments, and same-day payments have already begun for selected transactions.

    Источник: avrstudio.us

    TD Bank Routing/ABA numbers

    Sample check

    The TD Bank routing/ABA numbers are listed below.

    These numbers are sometimes called transit numbers.
    Connecticut
    Florida
    Maine
    Massachusetts/Rhode Island
    Metro DC/Maryland/Virginia
    New Hampshire

    Please use the following routing number you bank at one of the following branch locations:

    Seabrook
    Lafayette Road, Seabrook, NH

    Plaistow
    47 Plaistow Road, Route , Plaistow, NH

    Kingston
    53 Church St, Kingston, NH

    Hampstead
    Main Street Hampstead, NH

    Derry
    35 Manchester Rd. Derry, NH

    Londonderry
    62 Nashua Rd Londonderry NH

    Salem NH
    North Broadway, Salem, NH )
    New Jersey/Delaware
    New York – Metro NYC or former Commerce customers
    New York – Upstate NY or former Banknorth customers
    North Carolina/South Carolina
    Pennsylvania
    Vermont
    You can also find the routing / ABA (transit) number at the bottom left side of your check.
    Источник: avrstudio.us

    Direct Deposit is the confidential, electronic transfer of your paycheck, Social Security benefit, pension, annuity check, or other payment into your savings or checking share product. Your entire paycheck can be automatically credited toward any combination of your Members 1st share products each pay period. Direct Deposit increases the safety and convenience of processing your check, eliminates waiting in payday lines, and makes your funds instantly available. With Direct Deposit, your money is protected.

    1. Sign in to Members 1st Online banking and choose the desired share product for your direct deposit.
    2. Navigate to the Actions section and choose Direct Deposit.
    3. Complete the remaining prompts and a PDF direct deposit form will auto populate with all the necessary details for your employer.
    4. Provide this completed form to your HR or Payroll Department to notify them of your direct deposit request.

    Not enrolled in Members 1st Online banking? Utilize this blank Direct Deposit Form to complete your Direct Deposit setup.

    Federal or state government employees: complete IRS Form

    • Our routing number/ABA number -
    • Your 10 or 14 digit checking account number or your 17 digit savings account number.
    • You can find this information by:
    1. Sign in to Members 1st Online banking and going to the Accounts page.
    2. Click the share product where you would like to receive the deposit.
    3. Your account number for direct deposit will be displayed as your MICR account number at the top of the page.
    • You can print an auto completed Direct Deposit form by:
    1. Sign in to Members 1st Online banking and going to the Account page.
    2. Click on the share product where you would like to receive the deposit.
    3. Navigate to the Actions section and click Direct Deposit.
    4. Complete the remaining prompts and a PDF direct deposit form will automatically populate with all the necessary details for your employer.

    Your employer determines your start date based on its payroll processing criteria.

    Источник: avrstudio.us
    what is an ach number in banking

    : What is an ach number in banking

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    ACH Payments: What Are They and How Do They Work?

    Banking services provided united bank phone number The Bancorp Bank or Stride Bank, N.A., Members FDIC. The Chime Visa® Debit Card is issued by The Bancorp Bank or Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Chime Visa® Credit Builder Card is issued by Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see back of your Card for its issuing bank.

    While Chime doesn’t issue personal checkbooks to write checks, Chime Checkbook gives you the freedom to send checks to anyone, anytime, from anywhere. See your issuing bank’s Deposit Account Agreement for full Chime Checkbook details.

    By clicking on some of the links above, you will leave the Chime website and be directed to a third-party website. The privacy practices of those third parties may differ from those of Chime. We recommend you review the privacy statements of those third party websites, as Chime is not responsible for those third parties' privacy or security practices.

    Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank and Stride Bank N.A. (“Banks”). Banks are not responsible for the accuracy of any content provided by author(s) or contributor(s).

    1 Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

    © Chime. All Rights Reserved.

    Источник: avrstudio.us

    What Does ACH Stand For?

    In banking, ACH stands for Automated Clearing House, which is a network that coordinates electronic payments and automated money transfers.

    ACH is a way to move money between banks without using paper checks, wire transfers, credit card networks, or cash.

    References to ACH can mean several things, depending on where you see it.

    On Sank Statements

    On statements or in your transaction history, ACH means that an electronic payment has been made to or from your account using your checking account information. Common examples of ACH transfers appear below. For an ACH transfer to move funds to or from your account, you must authorize those transfers and provide your bank account and routing numbers.

    On Your Bills

    When viewing a what is an ach number in banking, ACH means you have the option to pay your bills electronically. Other terms include eChecks, EFT, or AutoPay. Instead of writing a check or entering a credit card number every time you pay, you can provide your checking what is an ach number in banking details and pay directly from your account. In some cases, you control when payment takes place (the funds only move when you request a payment). In other cases, your biller automatically pulls funds from your account when your bill is due, so you need to be sure you have funds available in your account.

    Keep an eye on your accounts and when various payments go through, even though payments are automatic.

    What Does ACH Mean?

    What, exactly, does Automated Clearing House refer to? A definition of the terms might help:

    Automated

    The ACH system consists of computers working together to process payments automatically. There’s no need to manually handle payments (on your part or the biller’s). ACH is a “batch” processing system that handles millions of payments at the end of the day.

    Clearing House

    The network uses two central “clearing houses.” All requests run through either The Federal Reserve or The Clearing House. This allows for efficient matching and processing among numerous financial institutions.

    Examples of ACH Transactions

    You probably have more experience with ACH than you realize. Individuals and businesses use ACH for everyday transactions such as:

    • Direct deposit of your wages (from your employer to your bank account)
    • Automatic payment of recurring bills such as energy bills, insurance premiums, and Homeowners Association (HOA) dues. When you provide a voided check to your biller, you’re setting up ACH.
    • Payments from businesses to vendors and suppliers
    • Transferring money from your brick-and-mortar bank to your online bank

    As with any technology, using ACH means embracing the pros and cons. Let’s review those below.

    Pros
    • FOR CUSTOMERS:

    • Get paid faster with an automated payment, and without waiting for a check to clear

    • Automating bill payments to avoid late fees and missed payments

    • Making online purchases without having to use a credit card or check

    • Minimize paper records that carry sensitive banking information

    • FOR BUSINESSES:

    • Makes money transfers easy with minimal labor and cost

    • Allows employee payments without printing checks, stuffing envelopes or paying for postage

    • Facilitates regular customer payments without having to transport actual paper checks to the bank

    • Has lower fees than credit card payments

    • Electronic process makes vendor and supplier payments easier and faster, while keeping electronic records of all transactions

    • Automated transactions may be less prone to error than a manual monthly task

    Cons
    • FOR CUSTOMERS:

    • Companies have direct access to your bank account

    • Auto payments are deducted whether or not you have the funds in your account, which can trigger overdraft fees

    • FOR BUSINESSES:

    • Allows other companies to have a direct link to your bank account

    • Customers can reverse their payments, although not as easily as with a credit card

    • Must monitor the transactions for fraud, as business accounts have fewer protections than consumer accounts

    • Companies may need to buy software and invest in training to process ACH payments

    What Does ACH Do for Consumers?

    If you’re an individual, you may enjoy:

    • Getting paid by your employer quickly, safely, and reliably. You avoid the hassle of waiting for your paycheck to arrive or depositing the check at your bank.
    • Automating your payments, so you never forget to pay (and your payments arrive on time)
    • Making purchases online without using a check or credit card. You pay quickly and avoid credit card processing fees.
    • Minimizing the number of pieces of paper floating around with your bank account information. This helps reduce the chances of fraud in your accounts. 

    The main drawback for consumers is that setting up ACH provides businesses with direct access to your checking account. They take the money to pay your bills whether you’re ready to pay or not. If you’re short on funds, you might prefer to pay a different way. Alternatively, you might want to prioritize certain payments when you have limited funds, paying only the most urgent bills first.

    For more details on how consumers use ACH, read about what is an ach number in banking up ACH debit.

    What Does ACH Do for Businesses?

    If you run a business, you benefit from:

    • A low-cost, non-labor-intensive way to transfer money
    • Paying employees without the need to print checks or pay postage
    • Receiving customer payments easily, quickly, and regularly—no more cash
    • Processing fees that are lower than credit card swipe fees
    • Getting paid by vendors—or paying suppliers—in a way that’s safe and easy to track (there’s an instant electronic what is an ach number in banking of every transaction)

    Businesses face the same problem as consumers: There’s a direct link to your checking account, and any errors or unexpected withdrawals can cause problems. What’s more, businesses can face the issue of customers reversing charges and taking back payments. That being said, it’s harder to reverse an ACH payment than it is to reverse a credit card payment.

    Businesses need to be especially vigilant about monitoring for fraud. Consumers enjoy a high degree of protection against errors and fraud in their checking accounts, but business accounts do not receive the same level of protection. If funds leave your account, it may be your responsibility to recover the funds (or take the loss).

    Finally, businesses may need to purchase software or invest time and resources into transitioning to ACH transfers. However, they’ll most likely recoup those costs easily over the long run.

    For more details on how businesses use ACH, read about ACH processing.

    Computers That Talk

    The ACH system is a network of computers that communicate with each other to make payments happen. Two sets of computers are at work for each payment:

    • The side that creates a request
    • The side that satisfies the request (assuming all goes well, which it usually does)

    ODFI

    Using direct deposit as an example, an employer (through the employer’s bank) creates a request to send money to an employee’s account. The employer is known as the Originator, and the employer’s bank is the Originating Depository Financial Institution (ODFI). That request goes to an ACH Operator, which is a clearinghouse that gets numerous requests throughout the day, and then routes the request to its destination.

    RDFI

    The receiving financial institution is the Receiving Depository Financial Institution (RDFI), which adjusts the account of the final account holder—the employee receiving pay in this case—who is known as the Receiver.

    Types of Transactions

    ACH transactions occur in two forms:

    1. Direct deposits what is an ach number in banking payments to a receiver, such as wages from your employer or Social Security benefits paid into your checking account.
    2. Direct Payments are requests to pull funds from an account. For example, direct payments take place when billers deduct utility bills automatically from your checking account.

    Currently, ACH transactions don’t happen in real-time. Instead, banks use “batch processing” to process the entire day’s worth of requests at once. As a result, you don’t get paid immediately after your employer authorizes payment. Instead, the transaction takes one or two business days to move through the system. There are plans to speed up ACH payments, and same-day payments have already begun for selected transactions.

    Источник: avrstudio.us

    ACH Almost Certainly Touches Your Life

    When you wake up on a Friday and see that your salary was automatically deposited to your bank account, that’s ACH.

    When you pay a bill online and save the hassle of writing and mailing a check, or set your mortgage, car loan and other recurring payments to automatically pay on the day of the month you choose, that’s ACH.

    Those are just some of the ways that tens of what is an ach number in banking of Americans use ACH, or the Automated Clearing House Network. Whether you know it as Direct Deposit, direct pay or electronic check, ACH is at your service handling everything from Social Security and salaries to mortgage and credit card payments and more. Just set it and forget it—no more worrying about getting payments in on time.

    ACH and Consumers

    See ACH in Action

    How Direct Deposit and Direct Payment Work

    Direct Deposit

    Direct Deposit is fast and reliable, and it’s the way 93% American workers get paid and it puts consumers in control of their finances. They can access their money quickly, pay no additional fees to receive their pay. In addition to payroll, Direct Deposit can be used to receive reimbursements, bonuses and more. 

    Learn More

    Split Deposit

    Split Deposit allows your employees to apply for a credit card online bank of america a fixed amount or percentage of their pay into a savings or investment account each pay period. 

    Learn More

    Direct Payment

    Direct Payment is the electronic transfer of funds to make payments – whether sending or receiving. Direct Payment allows consumers to pay their bills or tuition, donate to a favorite charity, make a purchase, or send money to a friend or family member electronically from a checking or savings account.

    Learn More

    Payments Myths

    Do you think ACH payments take days to process? They don't. That's a myth. Or do you think if payday is on a Friday, you won’t get your money until Monday (or later if Monday is a holiday)? That's another myth. Learn more about the realities of ACH.

    Learn More

    ACH Supports Religious Organizations, Nonprofits and Businesses

    Direct Deposit and Direct Payment can help businesses save time and cut costs. And, for nonprofits and religious organizations, Direct Payment helps manage and increase automatic donations. 

    NonprofitsBusinessesReligious Organizations

    ACH Network Volume Statistics

    Inthe ACH Network processed billion payments, marking the sixth consecutive year in which it added more than 1 billion new payments. Those include Direct Deposit via ACH of salaries, dividends and Social Security and other government benefits, and Direct Payment via ACH for bill payments including utilities and mortgages, as well as charitable giving, tuition, subscription services, and person-to-person (P2P) and business-to-business (B2B) payments. The total value of these payments exceeded $ trillion.

    ACH Network Statistics

    ACH Network’s History

    In people carried dimes to make calls from payphones and copies were made on a mimeograph. A lot has changed, and so has Nacha and the ACH Network. The network continues to grow and provide greater services to consumers and businesses.

    ACH History

    Network Administration Fees

    One of the ways that financial institutions help sustain a healthy ACH Network is through Network Administration Fees.

    Each depository financial institution that transmits or receives ACH entries is required to pay Nacha an Annual Fee and a Per-Entry Fee for costs associated with the administration of the ACH Network. The fee amounts are set to recover costs of the ACH Network administrative functions, which Nacha performs for the industry on an “at-cost” basis.

    Learn More

    Connect With Us

    Want to learn more about the Nacha Rules, follow ACH Network news on LinkedIn or sign up for our occasional Rules News email. 

    LinkedInRules News

    Источник: avrstudio.us

    Glossary of ACH Terms

    ACH - The Automated Clearing House network

    ACH NETWORK - The funds transfer system governed by the rules of the National Automated Clearing House Association (NACHA) which provides for the inter-financial institution clearing of electronic entries for participating financial institutions.

    ACH OPERATOR - The central clearing facility that receives entries from the Originating Depository Financial Institutions (ODFI), distributes the entries to Receiving Depository Financial Institutions (RDFI), and performs settlement functions. It provides services to DFIs on a local, regional or national basis. ACH Operators may be private companies or offices of a Federal Reserve Bank. The ACH Operator is responsible for processing electronic entries received from other ACH Operators or ODFIs.

    AUTHENTICATION – A data security technique used to ensure that the professed sender of information or a payment order is actually who they claim to be.

    AUTHORIZATION - A written agreement signed by an employee or customer, or an authenticated electronic process, that allows the posting of debits or credits arising from ACH transactions to the employee's or customer's account.


    BANKING DAY - Any day on which the DFI is open to the public for carrying on substantially all its banking functions.

    BUSINESS DAY - A calendar day other than a Saturday, Sunday, or Federal holiday.


    COMPANY/BUSINESS - An individual, sole proprietorship, partnership, or corporation engaged in a commercial enterprise or venture.

    CONSUMER ACCOUNT - Means an account held by a DFI and established by a natural person primarily for personal, family or household and not for commercial purposes.

    CORPORATE CREDIT OR DEBIT (CCD) - An automated corporate payments application that transfers funds between corporate accounts for collection purposes (concentration) or for disbursement purposes. In most cases it is used as an intra-company application and used as a cash management technique by the corporate community. This type of payment can carry one addenda record of information formatted based on basic ANSI X syntax. When this is done it is referred to as a CCD+.

    CREDIT ENTRIES - An entry to the record of an account to represent the transfer or placement of funds into the account.


    DEBIT ENTRY - An entry to the record of an account to represent the transfer or removal of funds from the account.

    DIRECT DEPOSIT - A deposit made to a consumer's account at a receiving depository institution through the ACH. Typically refers to payroll deposits, social security payments and pension payments.

    DIRECT PAYMENTS - A charge to a receiver's account at the receiving depository financial institution through the ACH. Examples of direct payments include insurance, utility, mortgage, and car payments.


    EFFECTIVE ENTRY DATE - The date the originating business or individual has requested that the entry posts to the receiver's account.

    ELECTRONIC AUTHORIZATION - An alternative means of authorization for ACH transactions. Electronic authorizations must be displayed in such a manner that the consumer can read the authorization, create a record or hard copy of the authorization (so the consumer can refer back to it) and must be authenticated in a similar manner to that in which a signature authenticates a written authorization (i.e., by a digital signature, PIN, or other code which uniquely identifies that consumer).

    ELECTRONIC FUNDS TRANSFER - Any transfer of funds initiated through a terminal, telephone, computer, or magnetic tape for the purpose of instructing or authorizing a financial institution to debit or credit an account.

    ELECTRONIC SIGNATURE - An electronic sound, symbol or process attached to or logically what is an ach number in banking with an agreement, authorization or other record and executed or adopted by a person with the intent to sign the record.


    FEDERAL RESERVE SYSTEM - The "central bank" for the U.S. Made up of twelve district banks. All national banks are required to be members. Other institutions can choose to be members.

    FILE - A group of ACH entries with specific control totals. A file may contain many batches of entries. A file is the smallest unit of information that may be sent to an ACH from an originator or delivered to a receiver. All the information necessary to post transactions is contained within a file.


    INDIVIDUAL IDENTIFICATION NUMBER - The number used by the originating business to identify the individual being paid (direct deposit) or charged (automatic debits).


    NACHA - The national ACH association that establishes the standards, rules and procedures that enable financial institutions to exchange ACH payments on a national basis.

    NOTIFICATION OF CHANGE (NOC) - Information sent by a receiving institution informing an originating institution and the originating business of an error in the information necessary to handle the transaction electronically. The correct information is included along with the incorrect information to assist the originator in making the change. Notifications of change are commonly referred to as NOCs, however the standard entry class code for these entries is COR.


    ORIGINATING DEPOSITORY FINANCIAL INSTITUTION (ODFI) - A participating financial institution that originates ACH entries. The entries may be originated internally or from an external source, such as a company.

    ORIGINATOR - Any individual, business, or other entity that initiates entries into the ACH.


    PRE-ARRANGED PAYMENT OR DEPOSIT (PPD) – The Standard Entry Class Code for those consumer transactions made through the ACH that arise from a prior authorization made by a customer and that normally occur on a periodic basis. PPD is the standard entry class code used for many types of ACH entries including direct deposit and insurance premium payments.

    PRENOTIFICATION ENTRIES - Also known as Prenotes, this is an optional ACH entry with a zero dollar amount and a special transaction code. If you choose to prenote, you must follow the rules. These entries are to be sent by the originating institution at least 3 banking days before the first live transactions are to be sent. Receiving institutions are required to check the transit/routing number and account number fields to ensure the entry is postable.

    PROCESSING DAY - Any day that a member institution is open to the public to conduct business or that an ACH facility is being operated.


    RECEIVER - An individual, corporation, or other entity that has authorized a company or an originator to initiate a credit or debit entry to a transaction account held at a receiving financial institution.

    RECEIVING DEPOSITORY FINANCIAL INSTITUTION (RDFI) - The final destination of a transaction. The RDFI may receive entries directly from an ACH or may have their entries processed through a processing center or service bureau, which is the actual receiving point.

    REG E - Regulation E provides a basic framework that establishes the rights, liabilities and responsibilities of participants in electronic fund transfer systems such as automated teller machine transfers, telephone bill-payment services, point-of-sale (POS) terminal transfers in stores, and preauthorized transfers from, or to, a consumer's account (such as direct deposit and social security payments). The term "electronic fund transfer" (EFT), generally refers to a transaction initiated through an electronic terminal, telephone, computer, or magnetic tape that instructs a financial institution either to credit or to debit a consumer's asset account. avrstudio.us 

    RETURN ENTRY - An entry that has been returned to the ODFI by the RDFI because it cannot be posted. The reason for each return is included with the return in the form of a "return reason code".

    REVERSING FILE OR ENTRY/REVERSAL – A credit or debit Entry that reverses an Erroneous Entry, or a file that reverses all Entries in an Erroneous File.

    ROUTING/ TRANSIT NUMBER - A 9-digit number (8 digits and a check digit) that identifies a specific financial institution. These numbers are assigned by the Thomson Financial Publishing Corporation and are listed in its annual publication, "Key to Routing Numbers".


    SAME DAY ENTRY– An Entry, other than a debit Entry, in which the Effective Entry Date is the same Banking Day as the date on which the Entry is Transmitted by the ODFI to its ACH Operator by the deadline for same-day processing and settlement. A Same Day Entry must be for an amount of $, or less. An IAT Entry cannot be a Same Day Entry. An Entry with a stale or invalid Effective Entry Date will also be a Same Day Entry if it is transmitted by the ODFI to its ACH Operator by the deadline, and is otherwise eligible for same-day processing and settlement.

    SETTLEMENT - The transfer of funds between two parties in cash, or on the books of a mutual depository institution, to complete one or more prior transactions made subject to final accounting.

    SETTLEMENT DATE - The day on which actual funds settlement occurs. Funds settle in all cases through the Federal Reserve settlement system either directly or indirectly through a correspondent account.

    STOP PAYMENT ORDER - A directive by an account holder to its financial institution not to pay a particular ACH transaction.


    TRACE NUMBER - A unique number assigned to every ACH entry by an Originating Depository Financial Institution which identifies that entry within a specific ACH file. The first 8 digits of the trace number are the transit/routing number of the ODFI and the last 7 digits are sequence numbers assigned by the originator.

    TRANSACTION CODE - Also known as a Tran code, this is the two digit code in the ACH record that determines whether an entry is a debit or a credit to a savings, DDA, general ledger, or loan account.


    UCC 4A - The portion of the Uniform Commercial Code which deals with certain funds transfers including ACH credit transactions not subject to the Electronic Funds Transfer Act or Regulation E. This law outlines the protections and responsibilities given to the parties to wholesale credit transactions and sets the standards for commercially reasonable security procedures to be used in conjunction with those transactions.

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    Glossary of Terms

     

    The following are some of the terms commonly used for ACH Direct Payments & Deposits.

    A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z

    A

    ABA Routing Number

    An ABA Routing Number is a nine-digit number that identifies a specific financial institution. This is the National Clearing System numbering system used in the United States.

    ACH (Automated Clearing House)

    ACH term used to describe electronic payments. Also referred to as Direct Deposits, Direct Payments, and Pre-Authorized Debits.

    ACH Format

    The ACH record format specifications described in the NACHA Operating Rules and Guidelines document are the accepted and warranted format standards for payments delivered through the ACH Network.

    Account Ownership Change

    An Account Ownership change occurs when you move your ACH Direct Payments & Deposits Service from one entity to another.

    When such action is taken on your ACH Direct Deposits Service, recalculations are performed on the pending payments belonging to all other ACH Direct Deposits Services that are still attached to the existing entity. By doing so it may release "in Excess" payments to "Valid".

    Recalculations are also done on the ACH Direct Deposits Service that have been moved to the new entity. By doing so it may cause some pending payments with a "Valid" status before the move of that ACH Direct Deposits Service to now be "in Excess ". You will be notified by email and the payments in Excess will be reported on the Daily Limit- Payment Details report.

    Addenda Record

    An ACH record type that carries the supplemental data needed to completely identify an account holder or provide information concerning a payment to the Receiving Depository Financial Institution (RDFI).

    Approval Authority

    A specific limit set up for approvers within your organization to release direct payments and deposits for processing.

    Approval Rules

    These are rules set by your organization, and define the number of approvers needed to authorize payments and deposits within specified dollar amount ranges.

    Approvers

    Those are the person(s) that have been authorized by your organization to approve direct payments and deposits for processing.

    Available Daily Limit for Client ID

    The sum of the Daily Limit and any Temporary Limit. This applies to RBC ACH Direct Deposits Service clients set up with a Daily Limit option.

    Authorized Signing Officers

    Authorized signing officers are the persons within your organization that have the power or authorization to sign on behalf of your organization.

    B

    Backup

    Backup is the process within your own organization to copy your input files for safekeeping.

    Block or Block of Payments

    A set of payments in an input file that has a common Payment due date.

    Blocked File

    A blocked file is an input file that has been received and is blocked. For example, a file that cannot be processed because its File Creation Number is duplicated or contains invalid characters. Upon your instructions your input file can be either unblocked for processing or deleted.

    C

    CCD (Corporate Credit or Debit)

    CCD is a Standard Entry Class Code (SEC) used to identify a Corporate Credit or Debit payment type. That is part of the ACH Company/Batch Header Record.

    Canadian Payments Association (CPA)

    This association is now referred to as Payments Canada. They are the national association that establishes the standards, rules and procedure for the interbank clearing of electronic entries for participating financial institutions in Canada. The system that direct payments and direct deposits flow through is referred to as the Automated Transfer System (AFT).

    Canadian Payment Association CPA Format

    The CPA record format specifications as described in the CPA Rules are the accepted and warranted format standards for payments delivered between financial institutions in Canada.

    Certificate Administrator

    The Certificate Administrator is appointed or sponsored by your organization's authorized signing officers to be responsible for issuing and revoking digital certificates specific to RBC Express.

    Centralized Designations

    Clients choosing not to have any subsidiary designations are termed Centralized. In this scenario, you have one control account that produces transaction files with the same Client Account Number throughout (i.e. on the Header, Detail records, and Trailer records). You also have one return account, which may be different from the control account.

    Client

    Client means a public or private sector organization using RBC ACH Direct Payments and Deposits Services.

    Client ID or Company ID

    This is the same as a Client Number or Client Account Number.

    Client Number or Client Account Number

    Client number and client account number have the same meaning. Both represent a unique client profile identification number that RBC Royal Bank assigns to each client. It is a 10 digit client number that contains a six digit basic number, followed by four zeros if there is no subsidiary. It is used to access broken tib and fib recovery time services.

    Client Support Centre

    Client Support Centre or Cash Management Client Support Centre is your contact for any assistance you may need with regard to your ACH Direct Payments or Direct Deposits Service.

    Client, You, and Your

    Client, you and your have equal meaning and refer to the Client or the Client's employees, representatives or agents using or operating the Service.

    Computer Centre

    The location where your input files are processed. There are what is an ach number in banking Computer Centres located across Canada – Ontario (OCC), Quebec (QCC) and British Columbia (BCCC).

    Contracts

    Contracts are groups of basic consumer or receiver information. It also stores contractual and historical information, such as:

    • Original contract amount,
    • Deposit amount,
    • First payment amount,
    • Regular payment amount,
    • Final payment amount,
    • Total amount paid to date,
    • Number of Payments to date,
    • Number of payments due,
    • Frequency (weekly, bi-weekly, monthly, twice monthly, bi-monthly, quarterly, semi-annually and annually)

    This feature is located in RBC Express ACH Record Manager.

    Control Account

    The control account or deposit account is the account that is debited or credited with the proceeds of your valid and delivered direct payments and deposits.

    Control Branch

    The RBC Royal Bank branch where your account is located. This branch will handle all the financial aspects of your account.

    Correspondent Bank

    As part of the International ACH Transactions addenda records, if an ACH payment was processed through another Financial Institution, then the Correspondent Bank Addenda record should accompany the payment.

    Customer or Receiver

    The party receiving the proceeds of the direct deposit, or the party who will be debited with the direct payment, as ordered by the Client, is the Receiver.

    Customer Number or Customer Identification Number or Receiver Identification Number

    These terms have the same meaning and represent a unique number that you assign to identify each of your customers. That number can be alphanumeric and is limited to 19 digits for payees or recipients located in Canada and 15 digits for payees or recipients located in the United States.

    D

    Daily Limit

    Your Daily Limit is the maximum total value of outstanding settlement obligations that RBC will assume for your organization. It is the maximum value of outstanding direct deposits that RBC has delivered, will deliver, or will have delivered in advance of your funding those direct deposits. RBC Royal Bank establishes your Daily Limit. A separate Daily Limit is established for each currency.

    Daily Limit Date

    The Daily Limit Date(s) spans from the Select Date of a direct deposit to its Value Date. In other words, it covers the days that it takes to deliver a direct deposit payment to the receiving financial institution to the day that the funds are available to the recipients.

    Data File

    Data Files are flat files containing information from your payment input file, payments that have been reversed and returned items. You may use these files to update your records in an automated fashion.

    Data Transmission

    The electronic exchange of information between two data processing points.

    Debits

    Debits or Direct Payments are electronic debit payment transactions or pre-authorized debits that represent the transfer or removal of funds drawn on specified payors’ account held at a financial institution.

    Deleted File

    A deleted file is an input file that has been received, is blocked or rejected and upon your instructions is deleted; the system will automatically delete the file and NOT process any transactions.

    Deposits

    Deposits or Direct Deposits are electronic credit payment transactions that represent the transfer or placement of funds to be deposited to specified payees’ accounts held at a financial institution.

    Detail records

    An ACH record type that carries the data needed to identify an account holder and provides banking information concerning a payment to be sent to the account holder at the financial institution.

    Destination Country

    The country that a customer payment is to be made. Payments can be made to either Canada or the United States.

    Destination Currency

    The currency that a customer payment is to be made. Payments can be made in either Canadian dollars (CAD) or US dollars (USD).

    Digital Certificate

    Instead of physical signatures, RBC Express uses electronic credentials to verify users. This is done through Public Key Infrastructures (PKI), a secure digital certificate technology that uses encryption keys to authenticate user identities. Each user, including Service Administrators, must have a digital certificate to gain access to the web-based services in RBC Express.

    Direct Deposits

    An ACH service that provides for the electronic transfer of funds directly into the account of a payee.

    Direct Payments

    An ACH service that provides for a method of collection upon authorization from the payor for the transfer or removal of funds drawn on specified payors’ account held at a financial institution. Refer to Pre-Authorized Debits (PAD).

    Dropped File

    A "dropped file” is an input file that has been received, is blocked for more than 2 business days and has not been deleted or unblocked, the system will automatically drop the file and NOT process what is an ach number in banking transactions.

    Due Date

    The date a payment is to be made.

    E

    Electronic Payments

    Direct Payments or Deposits that are exchanged via Data Transmission between two data processing points.

    Electronic Payments Network (EPN)

    EPN is the RBC’s ACH Operator for payments that are sent to the United States for processing.

    Electronic Credentials

    Each Individual using RBC Express ACH Direct Payments & Deposits requires a digital certificate in order to gain access to services, which enables RBC to accept digital signatures as electronic credentials to replace physical signatures on paper documents.

    F

    Field

    Specific information within a file layout that requires completion. Information must be supplied as instructed or it cannot be processed.

    File

    A group of ACH payments data information to be processed and sorted for delivery to financial institutions in Canada and the United States.

    File Creation Number

    This is a mandatory 4 digit number that you assign to your transaction file. The File Creation Number must be different from the previous 9 numbers submitted for processing. When submitting a test file, the FCN must be “TEST”.

    File Limit

    The file limit assigned by your organization is the maximum dollar value of each input file submitted for processing. If your file upon receipt exceeds this limit, the file will block and upon your authorization the file will be processed (unblocked) or deleted.

    Flat Files

    Flat Files are data files available to ACH Direct Deposits & Payments clients, which can be used to automatically update their systems or produce internal reporting. Data Files are available for Input Records, Returned Items and Reversed payments.

    Financial Institutions

    Any financial institutions qualified to receive any ACH entries that agree to abide by the CPA Rules and/or the NACHA Operating Rules and Guidelines.

    G

    GRADS Service Account Number (GSAN)

    The Global Receivables & Disbursements Service Account Number (GRADS) uniquely identifies you within this system, by service. This 10 digit number is also referred to as the client Account Number and Company ID (described above) or GSAN number.

    H

    Header record

    The Header record is the first ACH record type on your file layout that carries the data needed to identify the originator and the destination of the payments.

    I

    IAT

    IAT is a Standard Entry Class Code (SEC) used to identify an International ACH Transaction Credit or Debit payment type. That is part of the ACH Company/Batch Header Record and is used for all payments that are destined to account holders in the United States.

    In Excess payments

    The sum of payments due for a given settlement date currently exceeding the available Daily Limit. This applies to ACH Direct Deposits Service only.

    Input Amount

    The amount of the payment that is in the currency of the service.

    Input Data

    Payment information sent to RBC Royal Bank for processing in a specified format.

    Input file

    A group of ACH payment information to be processed and sorted for delivery to various financial institutions.

    Invalid Transactions

    Invalid transactions are those that fail to pass RBC Royal Bank‘s data validation process.


    J

    K

    L

    Limit Available

    The unused portion of the available Daily Limit that is still available for a given date. This limit only applies to the ACH Direct Deposit Service.

    Limit Used

    Portion of the available daily limit reserved for the settlement of transactions due on this date.

    M

    Mass Request

    A Mass Request refers to a request to be completed on a range of payments.

    Mass Reversals

    A Mass Reversal refers to a range of payments that have already been processed and delivered to financial institutions and such payments upon your authorization and within the required time deadlines are now being reversed on a best effort basis.

    Media

    A method of sending or receiving information. Data Transmission or RBC Express ACH Direct Payments and Deposits are the two media used for exchanging payment information.

    N

    National Automated Clearing House Association (NACHA)

    The national association in the United States that establishes the standards, rules and procedures that enable financial institutions to exchange payments on a national basis.

    Non-Operating Subsidiary

    Only one control account can be designated for the parent and the subsidiaries. One control account oversees all subsidiaries’ accounts and their activities.

    One transaction file is produced by the client and covers all subsidiaries. The Client Account Number for the Header and Trailer records will be that of the Parent Client Account Number (XXXXXX), The Detail records will contain the various Subsidiary Account Numbers (XXXXXX, XXXXXX, etc).

    However a separate account may be designated for each subsidiary’s returned items. Reports are produced for the parent company.

    Non Sufficient Funds (NSF)

    A payment transaction that has been returned by the receiving depository financial institution with a return reason code of

    Notification of Change (NOC) for USA-FI

    This applies to payment information received by a depository financial Institution in the United States (RDFI) to notify the originating depository financial institution (ODFI) that previously valid information for a receiver has become outdated or that information contained in a prenotification is erroneous. The standard entry class code is COR.

    Notification of change ( NOC)

    Notification of payment information change (NOC) received from financial institutions in Canada with regard to bank, branch and account number that occurs as a result of branch closures, mergers or acquisitions. NOC applies to both Canadian and US dollars accounts.

    O

    Operating Subsidiary

    Under this designation each subsidiary can have a customized level of control. Separate transaction files can be produced for each subsidiary, but may be sent in with the same transmission. Each subsidiary must submit their file with their Client Account Number consistently throughout the file. A separate header, detail and trailer record must be provided. Each subsidiary may have a different control account from the parent client and each subsidiary nay have a separate return account designated for their returned items. An output report/data file can be produced separately for each subsidiary, or a file may be produced covering all subsidiaries.

    Originating Depository Financial Institution (ODFI)

    A participating financial institution that initiates payments at the request of its clients. It is the financial institution that is sending the payment.

    Originator

    As the party that initiates transactions, the Client is the Originator.

    Output Report

    Mandatory/Optional and On-Request reports that are produced as part of the ACH Direct Payments and Deposits Service. Those reports are then transmitted electronically to you or are available on RBC Express for viewing.

    P

    PPD

    It is a Standard Entry Class Code (SEC) that is being used to identify a “Prearranged payment and Deposit Entry payment type used for personal payments destined to the United States. That is part of the ACH Company/Batch Header Record.

    Pass phrase

    A Pass phrase is a password that allows access into RBC Express. Each user has a unique Pass phrase to ensure optimal security.

    Payees

    A payee is the person that issues an ACH Direct payment and whose account is to be, or has been, credited with the value of that ACH Direct payment.

    Payment Due Date

    The date that funds are to be credited to or debited from the receiver’s account. The payment date is the same as the Value date only if we receive your payments in time for the regular scheduled select date.

    Payment Distribution Service (PDS)

    Payment Distribution Service refers to ACH Direct Deposit Service.

    Payment in Excess

    The sum of payments due for a given settlement date currently exceeding the available Daily Limit. This applies to ACH Direct Deposits Service only.

    Payment Register

    This is an optional report that is produced as part of the ACH Direct Payments & Deposits Service. It lists all valid payments and valid prenotes received on your input file.

    Payment Short Name

    The payment short name is a 15 digit field that is part of your company payment record to identify the originator of the payment. This field must clearly identify the originator of the payment through the use of a name that is known to and readily recognized by the receiver of the payment. This is the name that will appear on the receiver’s bank statements. If the Payment Short Name field is left blank, it will default to the client short name as indicated on your Client Profile.

    Payments Canada (Formerly known as Canadian Payments Association (CPA))

    The national association that establishes the standards, rules and procedure for the interbank clearing of electronic entries for participating financial institutions in Canada. The system that direct payments and direct deposits flow through is referred to as the Automated Transfer System (AFT).

    Payor

    A payor is the person who authorizes the issuance of an ACH Direct Payment and whose account to be, or has been, debited with the value of that ACH Direct payment.

    Person

    A person means a natural person, member, business or other legal entity.

    Pre-Authorized Debits (PADs) Service

    Pre-Authorized Debits (PADs) Service refers to ACH Direct Payments Service.

    Prefund or Prefunding

    A service option that is available for the ACH Direct Deposit Service which requires you to fund your direct deposits in advance. The indicator on your client profile will be set up as “Prefund”.

    Prenotification

    A non-dollar entry (zero value) that may be sent by an originator to receiving depository financial institutions in the United States to alert that a live dollar transaction will be forthcoming and that verification of the receiver’s account number is required.

    Processing Date

    The processing date is the date that the file is run in the Computer Centre.

    Payment Details

    Specific information required to process a transaction to the receiver. Information will include such fields as name, bank number, branch number and account number.

    Public Key Infrastructures (PKI)

    A system that provides the basis for establishing and maintaining a secure and trustworthy networking environment through the generation and distribution of electronic keys and certificates.

    Parent client

    Relates to Operating and Non-Operating Subsidiary designations. The first profile opened is always the Parent client number. For example, A Parent Client number always ends in four zeros –

    Q

    R

    RBC Standard Format (STD )

    RBC Royal Bank’s proprietary record format acceptable for submitting payments to financial institutions in Canada and the United States. For clients who process USA Destined payments on behalf of other Financial Institutions, it is recommended that you use ACH format to ensure all Correspondent Bank Addenda Records are available to you.

    Receiver

    The party receiving the proceeds of the direct deposit, or the party who will be debited with the direct payment, as ordered by the Client, is the Receiver.

    Receiving Depository Financial Institution (RDFI)

    Any financial institution qualified to receive payment transactions.

    Receiver Authorizations/Payor Agreements

    A written agreement authorizing you to make direct deposits or issue direct payments to an entity’s accounts at financial institutions in Canada or in the United States.

    Rejected File

    A rejected file is an input file that has been received by RBC could not be processed and must be re-submitted, if this file is not deleted, the system will automatically drop the file on the same day the input file is received and NOT process any transactions.

    Report Break

    The breakdown of a customer number into discreet segments for sub-totalling purposes.

    Report Roll-up

    This term only applies to Operating Parent and Subsidiaries. An output report/data file can be produced separately for each subsidiary, or may be produced for the Operating Parent covering all subsidiaries. Your client profile will need to be customized depending on your needs.

    Required Additional Limit

    The amount of additional daily limit required to permit full processing of payments in excess that are due for settlement on this date.

    Representment

    Re-issuing ACH Direct Payments returned as Non Sufficient Funds (NSF). Payments returned as “NSF” can only be represented once and must be represented immediately or within 20 business days. This service option only applies to RBC ACH Direct Payments Service.

    Return Account

    The account that will be debited or credited for the return of any payment transactions that could not be processed.

    Returned Items what is an ach number in banking payment transaction that is being returned to ODFI by the RDFI because it cannot be processed.

    Retry process

    Identifies a specific financial institution. In Canada this is made up of the bank and branch numbers. In the United States, this is the ABA Routing number. This is done every one the half hour until the correction occurs. The file will be dropped off on the end of the second business day after receipt of your input file.

    RSA SecurID® Token

    Each user with payment approval authority will be issued a Security Token or RSA SecurID® Token by RBC Royal Bank. This small device shows a unique, one-time sequence of 6 numbers that change every 60 seconds that is referred to as a Token Code or Token Value. RBC Express will ask for this sequence of numbers before payments can be approved.

    S

    Sanction Lists

    These are lists of entities and individuals controlled and maintained by the U.S Government (United States Treasury’s Office of Foreign Assets Control “OFAC”) and Canadian Government (Office of the Superintendent of Financial Institutions “OSFI”) that prohibit financial institutions from providing financial services to those entities and individuals on those sanction lists.

    Screen or Screening

    A term used when we are screening, checking or comparing your payments destined to the United States and to Canada originating from a foreign country against the defined sanction lists as indicated above under “Sanction Lists”.

    Standard Entry Class Code (SEC)

    Three character code used within an ACH Company/Batch Header record for payments destined to the United States that identifies the type of payment. All non-tax payments destined to or received from the United States must have a SEC code of IAT.

    Security Token or RSA SecurID® Token

    Each user with payment approval authority will be issued a Security Token or RSA SecurID® Token by RBC Royal Bank. This small device shows a unique, one-time sequence of 6 numbers which changes every 60 seconds. RBC Express will ask for this sequence of numbers before payments can be approved.

    Service

    Service consists of the transfer of funds to specified payees (direct deposits) or consists of the processing of pre-authorized debits by RBC on behalf of hsbc credit card login Client, drawn on specified payors (direct payments).

    Service Administrator

    A Service Administrator is responsible for setting up and managing how your organization uses RBC Express. This individual can authorize user access and set the level of user access within the system. An organization can appoint more than one level of user access within the system. An organization can appoint more than one Service Administrator.

    Set Intervals

    Set interval means occurring at specified, set or predictable periods or times.

    Select Date

    The latest date when RBC must deliver a direct deposit to the receiving financial institution to ensure they make funds available to the receiver on the next business day. For example, if a transaction is jpmorgan chase bank address for auto loans July 28, RBC must deliver the transaction to the receiving financial institution on July 27th to ensure that the receiver has access to the funds on July 28th. Files received after the Select Date will be processed for the next business day. In Canada, funds are made available to both consumers and businesses, while in the United States funds are only made available to consumers.

    Settlement obligations

    The maximum dollar value of payments that are due on a specific date that the bank will undertake to settle on your behalf.

    Subsidiary

    A subsidiary may be a branch or a department or other unit or service for which you require separate accounting and reports.

    Suspended Payment

    A suspended payment is a payment destined to the United States or to Canada originating from a foreign country that has been matched against the sanctions lists and is on hold until the investigation is completed.

    T

    Temporary Limit

    It is an additional daily limit established for a specific period to accommodate provisional increases in the value of payments. You must contact your RBC Royal Bank Account Manager well in advance of when you will need the increased Daily Limit.

    Token Code or Token Value

    This is the 6 digit sequence of numbers shown on the Security Token or RSA SecurID® Token every 60 seconds. For increased security, RBC Express requires users to enter two verifying credentials – a Passphrase and a token vale – for payment approvals.

    Transaction

    A transaction is an order from you to the Bank to issue either a direct deposit or a direct payment.

    Transaction Limit

    It is a maximum amount per payment assigned by our organization to reduce the exposure to accidental or unauthorized payments.

    Transmission

    The electronic exchange of information between two data processing points.

    Trailer Records

    The Trailer record is the last record type part of your file layout used to delimit the end of your file layout. The trailer record identifies the total number and the dollar values of all transactions.

    Two-Factor Authentication

    A requirement that the individual(s) in your organization assigned to approve a transaction or a batch of transactions require two credentials to digitally approve payment instructions. These credentials are commonly referred to as “something you know” (the individual pass phrase) and “something you have” (Token Value- RSA SecurID Tokens). The individual(s) will be prompted to enter those two credentials before payments can be approved.

    U

    Unblocked File

    An unblocked file is an input file that has been received, is blocked due to various conditions such as File Creation number duplicated and upon your instructions is unblocked. After unblocking your input file, the system will automatically process your input file.

    User

    A User is an individual designated by the client as a holder of a digital certificate issued by RBC and who is authorized to act on behalf of the client. All RBC Express users must have an RBC Digital Certificate.


    V

    Value Date

    The date when direct deposits are available to the receivers, which is also when you fund or settle the direct deposits. For direct deposits with a due date of today or in the past, the Value Date could be today or tomorrow. For ACH Direct Payment Service, the Value Date represents the date a payment is debited to the payor’s account and credited to your account. For payments with a due date in the past, this is the date received at the payor’s financial institution.

    Valid Transactions

    Valid transactions are those that successfully pass RBC Royal Bank’s data validation process.

    Validate

    The verification of certain fields on your input file to ensure that the specifications specified on the file layouts have been adhered to. It also includes validating bank number, branch transits and the format of the account number. It does not include validating if the account is in the name of the payee/payor.

    W

    We, Bank, Royal Bank, Royal Bank of Canada, RBC and RBC Royal Bank

    We, Bank, Royal Bank, Royal Bank of Canada, RBC and RBC Royal Bank all refer to Royal Bank of Canada.

    X

    Y

    Z

     
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    Automated clearing house

    type of electronic network for financial transactions

    This article is about the generic concept. For the specific payment system in the United States, see ACH Network.

    An automated clearing house (ACH) is a computer-based electronic network for processing transactions,[1] usually domestic low value payments, between participating financial institutions. It may support both credit transfers and direct debits.[2][3] The ACH system is designed to process batches of payments containing numerous transactions and charges fees low enough to encourage its use for low value payments.

    History[edit]

    The first automated clearing house was BACS in the United Kingdom, which started processing payments in April [4]

    In the U.S. in the late s, a group of banks in California sought a replacement for check payments.[5] This led to the first automated clearing house in the US inoperated by the Federal Reserve Bank of San Francisco.[5]

    BACS operated from the beginning on a net settlement basis. Netting ACH transactions reduces the amount of deposits a bank must hold.[5]

    Operation[edit]

    ACHs process large volumes of credit and debit transactions in batches. ACH credit transfers are initiated by the payer and include payments such as: direct deposits, payrolls, retail payments and vendor payments.[5] ACH direct houston food bank truck collections are initiated by the payee with pre-authorization from the payer; ACH direct debits include consumer payments such as utility bills, insurance premiums, mortgage loans, and other types of bills.[5] Transactions received by the bank during the day are stored and transmitted in batches to the ACH. ACHs are net settlement systems, so settlement may be delayed for days, and there is some settlement risk. ACHs may allow for the transfer of a limited amount of additional information along with payment instructions.

    ACH payments contrast with real-time gross settlement (RTGS) payments which are processed immediately by the central RTGS system and not subject to any waiting period on a one-to-one basis. ACH systems are typically used for low-value, non-urgent transactions while RTGS systems are typically used for high-value, urgent transactions.[6]

    Operations[edit]

    This section describes in a generic way the typical operation of an ACH system. Each ACH system has its own specifics; see, for example, quick facts[7][8] for the NACHAACH Network in the United States and its terminology.

    1. The ordering customer makes a transaction initiation, which can be either manually or by sending a file of initiation requests to a bank.
    2. The bank gathers all transaction initiations for an ACH that arrive from different customers (combining manual and file-based).
    3. On a periodic basis, the bank creates a file that it dispatches to the ACH either at the end of day or in cycles throughout the day.
    4. The ACH operator combines the information submitted by the banks within each cycle (generally ACHs have several cycles throughout the day).
    5. The ACH operator informs each bank of the net settlement amount for which they are responsible for the cycle.
    6. The ACH operator ensures what is an ach number in banking the settlement amounts are received from all participants for the cycle, so that the cycle can be executed.
    7. The ACH operator informs the destinator's bank of the transaction details.
    8. When transaction arrives in the destination bank, the bank executes the transaction: such as crediting the payment to the beneficiary, while the ordering customer's bank debits the ordering customer's account.

    Existing systems[edit]

    There are various ACH systems around the world. The World Bank identified 87 systems in their Survey[9] and 98 systems in their survey,[10] while other sources have made qualitative analysis of a smaller number of ACH systems.[6]

    In addition, there are various ACH associations such as the European Automated Clearing House Association.[38]

    Uses of the ACH payment system[edit]

    There are various usages of ACH systems;[7] the terminology related to different types of transactions varying in different countries. Most ACH payment systems support the following types:

    • Credit Transfer: non-immediate transfer of funds between accounts at different financial institutions for payments by retail customers and non-urgent business-to-business payments.
    • Direct debit payment of consumer bills such as mortgages, loans, utilities, insurance premiums, rents, and any other regular or membership style payment. These type of payments are usually used by businesses that collect ongoing payments from the same customer.[citation needed]

    See also[edit]

    References[edit]

    Источник: avrstudio.us

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    5 Comments to What is an ach number in banking

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