ACH Processing Overview

Related Topics

Automated Clearing House (ACH) provides advantages to your credit union and your members:

Credit Union Advantages

  • Direct Deposit Payroll reduces payroll administration and distribution expenses, eliminates lobby traffic, and accelerates the availability of funds because the funds are electronically transmitted.
  • Preauthorization and bill payment services reduce paper handling costs, provide the assurance of payments, and reduce the number of share drafts processed.

Member Advantages

  • Provides flexibility of deposits.
  • Eliminates time involved in depositing a check.
  • Eliminates lost or stolen checks.
  • Provides consistent availability of funds.
  • Offers a preauthorized method for paying bills, such as insurance payments or loan payments.
  • Makes allocations to other accounts through payroll numbers.

Portico provides several ACH features for credit unions:

  • Allows you to designate which share type is ACH savings and which share draft type is ACH checking at the individual member level. (Member Payroll Maintenance dialog box)
  • Allows payroll distributions associated with ACH deposits to post in the same back-office cycle. (Payroll Posting Summary window)
  • Lets you indicate the number of days prior to the system date that ACH credits and debits should be displayed as pending on the Account Information – Overview tab, Audio Response, and Virtual Branch Online Banking.
  • Includes option to draw share accounts negative for debit transactions. (ACH Processing Options window/Shares - Draft Info tab)
  • Provides daily online report for future ACH postings, daily online report listing all member exceptions and totals for each ACH that posted, and daily microfiche listing all the ACH activity. (ACH System Posting/Exception Report 170, ACH System Pended Batch Report 171, and ACH Summary Report 178)
  • Allows you to post to multiple share draft accounts based on share draft ID.
  • Offers several optional features, including:
    • ACH Overdraft Protection (ACH Processing Options window/ACH Processing Rules window)
    • ACH Returns (Exception Items window/Single Return Item window)
    • ACH Notification of Change (Notification of Change window)
    • ACH Stop Pays (ACH Stop Pay dialog box)
    • ACH Online Posting (ACH Deposit from GL Transaction 46A)
    • ACH Tracking (Select Employee Groups window/Select Employee Group Information window)
    • ACH NSF Fees and Notices (Exception Items window)
    • Loan Payments (Member/GL Items window)
    • ACH Credits/Debits to GLs (Member/GL Items window)