All The Tools Necessary for ACH ORIGINATION Presented by Payments Central November 15, 2004 Presented By… Jennifer Gatts, AAP Stephanie Tisch [email protected] [email protected] PAYMENTS CENTRAL, INC. 3380 Tremont Road Columbus, OH 43221 Phone: 800-288-2204 Fax: 614-457-4824 www.paymentscentral.org What is ACH? • Payment mechanism used to replace paper payments with electronic transactions. • It is a batch processing system. ACH Credit Flow ACH $ $ - + ODFI ACH Operator RDFI $ $ Authorization + - Receiver Originator ACH Credits • annuities • customer-initiated transactions • corporate-to-corporate payments • dividends • interest payments • payrolls • - private • - government • pensions • - private • - government • Social Security payments • state tax payments • government vendor payments ACH Debit Flow ACH $ $ - - ODFI ACH Operator RDFI $ $ Authorization - - Receiver Originator ACH Debits • association/club dues • cash concentration • distributor/dealer payments • corporate-to-corporate payments • government savings bond purchases • contributions to IRAs, SEPs, 401Ks, etc. • holiday or vacation club payments • insurance payments • mortgage and installment loan payments • point of sale purchases • safe deposit box rentals • utility payments • tax payments • charitable donations Anatomy of an ACH File File Header Record • Each ACH file contains one file header record • Primarily contains ODFI information. • FedLine Users have this record automatically generated Batch Header Record • One Batch Header Record is generated for each batch of similar ACH items in an ACH file. • ACH files can contain more than one batch. • The Batch Header Record may be created by either the ODFI or the Originator. • Contains information referencing the Originator