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ACH Direct

ACH (Automated Clearing House) is a service provided by the Federal Reserve Bank whereby they “clear” electronic transactions among financial institutions. Now, through ACH Direct, 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!

Through ACH Editor, three types of ACH transactions currently can be initiated; Prearranged Payment and Deposit Entry (PPD), Cash Concentration or Disbursement (CCD) as well as tax payments. 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
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 To use ACH Direct, you need to be an ExecuBanc user. For more information on ACH Origination and/or ExecuBanc please contact us online or call our Online Support at 435-2265 ext 102 (if local) or toll-free at (800) 421-2588 ext 102.