BTerrell Group Blog

Taking the Mystery Out of ACH

Posted by Brian Terrell on Fri, Jan 13, 2017

How it works, and what to do when it doesn’t

With nearly 70 percent of adult Americans doing at least a portion of their banking online, we’ve come to take the technology behind the scenes forACH Wires Electronic Payments.png granted. That technology network, called Automated Clearing House (ACH), has been busy for more than 40 years. In 2015 alone, the network processed nearly 24 billion transactions with a total value of $41.6 trillion.

An ACH primer

Just what is ACH? So as not to risk sending you straight to sleep, I’ll just hit the highlights here. As the Originator, you (ok, your computer) create a file in the ACH-specified format containing the who, how much and when of the payment transactions you initiate. Your bank collects that file, aggregates it with other files it receives, and then passes the file off to an official ACH clearinghouse. The clearinghouse debits or credits your account and then makes the appropriate transactions available to the receiver’s bank who in turn makes it available to the Receiver (your vendor).

It’s efficient, secure and cost effective

Electronic payment processing is an efficient, secure and cost-effective way to send and receive money – that’s why so many of us use the technology to pay our personal expenses. And while the typical American now pays only one-third of their bills by check, most businesses continue to complete more than half their transactions that way – and it’s costing them. Between preparation, approvals, postage, and the costs of dealing with occasional fraud, a business has to spend $5 to $25 to issue a paper check, compared with $1 to $2 for the same payment made electronically.*

If you’re already using the ACH capabilities in Intacct, good on you. You are saving the hassle and the costs associated with printing and mailing paper checks, and benefitting from the additional security that comes with eliminating paper. But in an increasingly global world, you can expect to run into difficulties if you want to make similar electronic payments to customers in other parts of the world.

Taking ACH beyond borders

The ACH payment network works because it has standardized the process though the use of a prescribed file format. You give a bank a file in the correct ACH format – it works. Unless it doesn’t.

ACH is a North American standard and many foreign banks – plus a few U.S.-based banks – have established their own proprietary formats. Send one of these banks an ACH file and they’ll reject it.

Perhaps one day there will be a global file standard, but until then, there’s EFT Manager, a global electronic funds transfer solution from BTerrell. With Intacct and EFT Manager, you can send electronic payments to your vendors through any financial institution, anywhere in the world.

Curious about ACH transactions in Intacct or about EFT Manager? Contact us with your questions.

*According to researcher Chrone Consulting

By BTerrell Group, Texas- based Intacct Partner

Tags: Electronic Funds Transfer

Automate Payment and Collection Processes with Orchid EFT Processing

Posted by Meredith Gooch on Fri, May 06, 2011

Do you process Receipts and/or Payments via Electronic Funds Transfer?
Do you need to reduce your payment processing costs?
Do you process Direct Debits from customers or Customer Refunds?

If so, you might benefit from Orchid's EFT Processing solution! It streamlines payment and collection processes and tightens control over bank transfers. EFT Processing transfers Accpac receipts and payments through to the electronic funds transfer functionality of your banking software.

The Benefits of EFT Processing:

  • Reduced bank transaction fees.
  • Process both receipts and payments.
  • No duplicated data entry, saving time and eliminating errors.
  • Expensive check stationery not required.
  • Improved security on vendor/customer bank account details.
  • Improved security on issuing checks – no checks lost in the post.
  • Reduced postage costs as you can email remittance advices.
  • Reduced processing time, instead of taking several hours to print, fold and post cheques - an EFT batch can be created, imported and remittances emailed in a matter of minutes.
  • Environmental benefits through the reduced use of paper.

 Orchid EFT Processing

EFT Processing Features:

  • Automatically creates EFT files required by the bank, for both payments and receipts.
  • Creates Electronic Funds Transfer files in the format required by many major banks based on the standard Sage ERP Accpac Accounts Payable payment and customer refund routines.
  • Creates Electronic Funds Transfer files for receipts (direct debits) from customers using receipt batches.
  • Holds vendor and customer banking details.
  • Optionally stores vendor’s bank account details by remit-to code.
  • Optionally stores vendor and customer bank account details by Payor Bank.
  • Works with numerous Bank formats worldwide. User definable Bank formats and screen labels to reflect Bank terminology.
  • Summary transaction log.
  • Audit log of changes to Vendor and Customer bank account details.
  • Remittance advices can be emailed using standard Accpac functionality.
  • Elect to work with posted or unposted batches.
  • Automatically create customer receipts and bank files from AR invoices.
  • Automatically create AR Receipts from transaction balances.
  • Select by document date, due date, customer range, customer group, customer optional field.
  • The ability to have an e-mail cc to keep copies of e-mail remittance advices.
  • Select from a range of batches or selected entries within a batch.
  • Define default remittance advices.
  • Approval process with enhanced security for amending customer and vendor bank account details.
  • When generating bank files, optionally elect to skip or error on vendors or customers who are not defined in EFT Processing.
  • Developed in the Accpac SDK providing Accpac look and feel.
    Standard Accpac security, customization capabilities, data integrity checking, web mode and more!
  • Runs on all databases supported by Accpac.
  • Supports Customer Number Change and Vendor Number Change.

Tags: Accpac, Orchid EFT Processing, Orchid, Electronic Funds Transfer