Initiate and Approve ACH (4:15)

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Video Summary

It’s easier than you think to optimize your cash flow by using Liberty Bank’s ACH Origination to schedule timely collections and payments.

Video Transcript

00:00:00 - 00:00:31

How to Manage ACH

ACH Origination allows authorized business customers to initiate a wide range of ACH/electronic payments and collection types, including vendor payments, direct deposit of payroll, cash concentration, pre-notifications, and federal tax payments. Authorized users can set up ACH participants, such as individuals, corporations, or government.

00:00:32 - 00:01:43

Setting up Participants

Setting up participants involves adding information such as name, financial institution, unique identifier, bank account number, and account type. Participants can be grouped together based on type such as hourly employee, salaried employee, vendor, government, etc.

To get started, click on the ACH module. You will be prompted with the RSA Token Security Prompt to enter your passcode which consists of your 4 digit pin provided by Liberty and the 6 digit code on your RSA token. All as one long 10-digit number with no spaces. When done, click submit.

To add participants, select the ACH tab, then select the Participants module. Click the Add Participant button and begin entering all required information. The system will auto-complete the financial institution information so the user can select from the list to avoid errors.

00:01:44 - 00:03:11

Setting up Batches

The Batches module enables authorized users to manage an ACH batch, which is a template containing one or more participants, the amount, and the memo. The batch header includes Batch Name, Transaction Type, Company Entry Description and the offset Account. To create a batch, select the ACH tab, then, the Batches module. Click the Add Batch button and enter the information. Save the batch or begin assigning participants.

To add a participant, select the Add Participants button in the Batch Details screen. Select existing, or create a new participant. Once participants are added, specify the amount and the memo, and save the template.

Batch templates can be edited or deleted. Batch templates can be initiated by authorized users who have the Initiate Entitlement within ACH. Select the batch to be initiated and choose the Effective Date (the date when the payment needs to be settled). The effective date range is determined by the ACH configuration setting for SEC code lead days and future date default, respectively.

Once the batches are selected, click Initiate, and a confirmation message will appear.

00:03:12 - 00:004:15

Fraud Prevention

For fraud prevention, use the dual control approval process. Set the Number of Approvals Required to 1 as an Entitlement, so another business user must approve the initiated batches before they can be processed. As the authorized user who has Approve or Reject Entitlement, login to iBanking and navigate to the ACH Activity screen. The list of batches to be approved is in the Pending grid. Select the batches to approve or reject and enter comments.

Pull batch transaction history from the ACH Activity screen in the History grid. Select the ACH tab then, select the ACH Activity module. You can search or filter the ACH history by Company Name, Batch Name, Status, Effective Date, Reference number or Offset Account.

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