ACH (Automated Clearing House) is a service provided by the Federal Reserve Bank whereby they “clear” electronic transactions among financial institutions. Now, through ACH Origination, you as a business manager can originate and track your own ACH transactions very conveniently, direct from your office. When used in conjunction with ExecuBanc, you not only have the flexibility to upload and peruse your ACH files such as payroll, you also can pay your vendors, taxes and much more, all online!

To use ACH Origination, you must first install on your computer, a special software module called ACH Editor. This module provides a convenient means to edit, encrypt and then convert your files into ACH format before transmitting over the Internet.

To e-mail us for more information on ACH Origination and/or ExecuBanc please click here. You can also call our Online Support at 435-2265 (if local) or toll-free at (800) 421-2588.

Through ACH Editor, four types of ACH transactions currently can be initiated; Prearranged Payment and Deposit Entry (PPD), Cash Concentration or Disbursement (CCD), Federal Tax Deposit Payment (TXP) and Corporate Trade Exchange (CTX). A brief description of each follows:

Prearranged Payment and Deposit Entry (PPD) – transactions are used for transferring funds into accounts at any financial institution for various purposes. Two examples include:

· Direct Deposit - is a credit application that transfers funds into a consumer’s account at any financial institution. The funds being deposited can represent a variety of products such as payroll, interest, pension, dividends, etc.

· Preauthorized Bill Payment - is a debit application. Companies may participate in the ACH through the electronic transfer (direct debit) of bill payment entries. Through a prearranged authorization, the consumer grants the company authority to initiate periodic charges to his or her account as bills become due. This concept has worked well where the recurring bills are regular, regardless of whether they vary in amount. Examples include insurance premiums, mortgage payments, utility bills, etc.

Cash Concentration or Disbursement (CCD) – transactions can be either a credit or debit application where funds are either distributed or consolidated between corporate entities. This application can serve as a stand-alone transfer or it can support a limited amount of payment related data relative to the funds transfer.

Federal Tax Deposit Payment (TXP) – transactions are used to deposit tax payments intended for the Federal Government, such as:

· FICA taxes

· Railroad Retirement taxes

· Corporate Income and Estimated taxes

· Various Federal Excise taxes

Such taxes are required to be withheld and deposited with a Financial Institution or the Federal Reserve Bank as prescribed by Secretary of the US Treasury.

Corporate Trade Exchange (CTX) - supports the transfer of funds (debit or credit) within a trading partner relationship. A full disclosure of transaction related information (e.g., invoice numbers, etc.) is provided via multiple addenda records all of which can be perused online via ExecuBanc.