1. Greater Milwaukee Chapter of the APA
Presented by
WACHA
The Premier Payments Resource
Luann S. Kohlmann, AAP, NCP
Vice President or
2012

2. Disclaimer
This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only
NACHA owns the copyright for the NACHA Operating Rules & Guidelines
The Accredited ACH Professional (AAP) is a registered service mark of NACHA
© 2012 WACHA All rights reserved
This material is derived from collaborative work product developed by NACHA ─ The Electronic Payments Association and its member Regional Payments Associations

3. WACHA The Premier Payments Resource
Wisconsin Automated Clearing House Association
Not for Profit Trade Association
Membership Driven (FIs and Corporations)
Specialize in training and education for electronic payments
17 similar associations in US
Help Desk
New Compliance arm called Payments Advisory Resource (PAR)
Covers Audit and Compliance
For membership info contact us at or go to our website.

4. Level Setting How many of you use Direct Deposit?
Do you mandate Direct Deposit?
How many of you use ACH for Payroll Taxes?
How many companies use Direct Payment for bill payments?
Promote 1-2 times per year.
Promote financial goals by putting $$ into savings
Save over 3 days per years by not going to the bank

5. Direct Deposit SIMPLE SAFE SMART
Direct Deposit can simplify the labor and time processes involved in payroll processing because it requires less manual handling such as the account reconciliation process
Direct Deposit uses the ACH Network, a safe and secure payment network used by banks, credit unions, and the U.S. government to send and receive payments each day, so payments are never lost or stolen
Less likelihood of fraud, because there is less potential for counterfeit or stolen checks, altered amounts, and forged signatures
The potential for error is reduced because Direct Deposit requires less manual handling than a check.
Problems with Direct Deposit are rare. If there is a problem, the dispute resolution process is simple and straightforward. The transaction has an electronic trace from start to finish.
Employees spend between 8.5 and 24 hours per year going to the bank or credit union to cash or deposit their paychecks, an activity which accounts for an estimated $3-$5 billion loss in productivity annually.
Smart way to help the environment. Each year, checks use more than 674 million gallons of fuel and add 3.6 million tons of CO2 to the environment as they travel through the payment cycle.
Reduces the reliance on paper checks and administrative costs associated with producing payroll checks-less check stock to buy and store, less wear-and-tear on printers, fewer envelopes, etc.

6. Direct Deposit Savings Calculator
Typically, it costs more to process a paper check than a Direct Deposit transaction. Usually between $2.87-$3.15 per payments
Find out how much you could save using the Direct Deposit Calculator

7. Authorizations Give a copy Reversal clause DFI request for proof
Retention
2 years after final payroll settlement date

8. Reversals In case of error a “Reversal” file or entry can be sent
Reversal is not guaranteed!
NACHA is working on an initiative to tie the reversal to the original entry

9. IAT International ACH Transactions
Transaction Type codes-Reason for the payment
ANN (Annuity)
DEP (Deposit)
LOA (Loan)
MIS (Misc)
MOR (Mortgage)
PEN (Pension)
REM (Remittance)
RLS (Rent Lease)
SAL (Salary)
TAX (Tax)

10. IAT International ACH Transactions
Authorization and entry needs many more details
Foreign Payment Amt /Receiver’s Name
Originator’s Name /Street/ City / State/ Country/ Postal Code
ODFI Name / ID/ Branch Country Code
RDFI Name / ID / Branch Country Code
Receiver’s ID Number / Street /City / State / Country/ Postal Code
OFAC Compliance

11. Payroll cards
How many of you use payroll cards? You can use Direct Deposit to fund payroll cards
Used for employees without bank accounts

12. Availability Payroll needs to be available by 9am
Consumer credits available to the RDFI by 5pm the day before Settlement Date must be available for cash withdrawal by opening of business on settlement date
Effective Date vs Settlement Date
The opening of business is the later of 9:00 am local time or when teller facilities (including ATMs) are available for customer account withdrawals
Not midnight…

13. Corporate Account Takeover
How do you get you payroll files to your financial institution? Security agreements between you and your FI? Security in your office? Security with your service providers?

14. Retirees
Social Security Direct Deposit mandate
Pensions
Reclamations

15. Expedited Processing & Settlement (EPS)
NACHA Rules initiative to enable a premium ACH processing and settlement window
Faster and more flexible settlement
ACH Network-wide solution
All endpoints participating
Same-day processing and settlement, not “real-time”
Vision in Current Rules Proposal
Consumer & commercial ACH debit, credit, reversing, and return entries
Originated, processed, settled and made available same-day
Addition of an afternoon window, with participation from both ACH Operators, for EPS premium clearing
Could extend the submission window

16. Resources WACHA- The Premier Payments Resource
PAR- Payment Advisory Resource
HELP DESK
Phone:
Toll Free:
Fax: