Type 05 Addenda Record
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The Type 05 addenda record is a standardized payment format endorsed by NACHA that allows a corporation to transmit payment-related information. The U.S. Treasury Department uses an electronic fund transfer program (EFT) called Vendor Express for processing payments. Consequently, the vendors for the Federal Government do not accept checks. Instead, they use EFT to make direct deposits into their financial institutions on the payment date.
Vendor Express uses the ACH Cash Concentration or Disbursement entry (CCD) with a structured Type 05 addenda record. Portico interprets the Type 05 addenda record for ACH processing so that the appropriate message appears on a credit union's member statement.
It is important to know that the system recognizes and uses the Type 05 addenda record for ACH processing to ensure that the proper communication appears on the member's statement. The Type 05 addenda record allows the member to easily identify the type of government payment they are receiving, such as a payment for contract labor or IRS tax refund. When Portico receives an ACH item with an Type 05 addenda record, the system uses the cross reference files to interpret the record into a statement message that your members can easily understand. The information required for the cross reference files can be obtained from your local Federal Reserve Bank.
The Type 05 addenda record format consists of a line of data segments. For example, 705RMT*IV*87-77635*4000.00\
| Symbol | Description |
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7 |
Identifies the record as an addendum and not a detail record |
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05 |
Indicates a Type 05 addenda record |
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RMT |
Tells the system to refer to the cross reference files for a payment type match |
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* |
Separates pieces of information or data segments |
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IV |
Indicates a payment type identifier. The cross reference files use the letters RMT and IV together to create the message that displays on the member's statement. |
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87-77635 |
Describes the payment type. In this example, 87-77635 signifies the invoice number. |
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$4000.00 |
Identifies the payment amount in this example. |
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\ |
Indicates the end of a segment. The backslash (\) allows multiple transactions to be processed. |
After it has been translated, the ACH Type 05 addenda record appears as the following statement message:
Seller Inv. Num: 87-77635, Amt Pd: 4000.00
Portico cannot correct an ACH Type 05 addenda record error. It is the responsibility of the Originator to create accurate addenda records for ACH items. Portico will still process an ACH item with a Type 05 addenda record that contains a format error, however; the member's statement may contain partial information or the default message U.S. GOVT. ACTIVITY, depending on where in the addenda record the format error occurred. A member who receives a statement with an unusual message might find it confusing.
Call Portico Customer Service with 05 Format errors. Portico Services will be able to manually interpret the Type 05 addenda record from ACH information retained. Please be prepared to provide Portico Services the following information about the item.
- Date item processed
- ACH field used for member identification location. This location may be either the bank account number or the Individual ID.
- ACH transmission field used to identify member. This identification may be member number, secondary ID, Social Security number, ATM ID, or share draft ID.