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The Automated Clearing House (ACH) is an electronic payment network used by millions of consumers, companies, financial institutions and government agencies. In fact, approximately 99% of the nation’s financial institutions use the ACH network, and they have recognized improved cash management capabilities and decreased costs of electronic funds transfer. The ACH system is tested and proven to be fast, inexpensive and completely reliable for many debit and credit applications including direct deposit, direct payment, cash concentration, corporate payments, financial electronic data interchange (EDI), point of sale, and customer-initiated entries.
COACH II
Corporate Central Credit Union’s ACH solutions provide our members with a state of the art COACH II system that allows members to both originate and receive ACH in one comprehensive tool. COACH II offers you a flexible, user-friendly, and low cost solution for ACH receipt and origination designed specifically for the credit union network. COACH II offers exceptional functionality, giving you a choice in the level of operational control and monitoring. The software is built with Internet-based technology, making it easy to integrate with other credit union or corporate applications, and the application is all-inclusive; you do not have to purchase separate modules.
Benefits of Corporate Central Credit Union’s COACH II system include:
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Turnkey solution eliminating the need for maintaining hardware, software and operations support
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Browser based flexibility over a secured Internet connection allowing any contingency processing facility
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Ability to allow Select Employer Groups (SEGs) to connect from their office to view and process information, which is a great advantage and service to offer to your business members
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Warehousing capabilities allowing ACH origination files to be submitted up to 30-days prior to the effective date
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Tools to view file status, query trace, and research items anytime, anywhere
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Includes a full complement of daily reports for record-keeping, cash management, and risk management
International ACH Transactions
The NACHA Operating Rules (Rules) amendment for International ACH Transactions (IAT) went into effect on September 18, 2009.
IAT Overview
In this Rules change, a financial institution is considered involved in the cross-border payment transaction if it:
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Holds an international account that is credited or debited as part of the payment transactions
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Receives funds directly from a person or makes a payment directly to a person residing in a foreign country as part of the transaction
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Serves as an intermediary in the settlement of the international payment transaction
What does this mean?
What this means is that a new Standard Entry Class (SEC) code will be available for IAT when originating and receiving cross-border transactions.
The Rules change classifies IAT by focusing on where the financial institution moving the funds is located. So, all CBR, PBR and certain PPD and CCDs will now be sent as IAT.
What this also means is that Gateway Operators are required to classify payments transmitted to/from a financial institution outside the United States as IAT, and requires the Bank Secrecy Act's (BSA) Travel Rule information to be included in the international payment.
Why did the Rules change?
The reasoning behind the change is due to a request made by the Office of Foreign Assets Control (OFAC) to align the Rules with OFAC compliance obligations and make it easier for RDFIs to comply with those obligations. Currently, the information included in CBR and PBR cross-border payments is not sufficient to allow RDFIs to identify all parties in order to comply with OFAC policies.
Which countries can IATs be sent to?
Countries available and supported by the Fed for IAT entries include:
To send to a country other than those listed above, you will utilize the blank IAT payment initiation screen to send to a Gateway Operator other than the Fed. Blank Payment Initiation Quick Reference Guide
ACH can be fully implemented within 4-6 weeks with an assigned and dedicated team at Corporate Central Credit Union will guide and train your staff through the entire implementation process, as well as, offer follow up training and facilitation for new users. For more information regarding ACH solutions, please contact a Relationship Development Officer.
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