The electronic payments industry is dynamic. New applications for making payments using the automated clearing house (ACH) network are constantly under development. Changes in the ACH network mean not only changes to rules and regulations, but also changes to the way we conduct our business. “But we’ve always done it that way” does not apply here. — Margaret L. Simmons

The electronic payments industry is dynamic, and new ways of using the ACH network to make payments create new challenges for financial institutions. ACH applications now range from direct deposit of an employee’s payroll and collecting insurance premiums to electronic capture of MICR information to create an ACH transaction, and payments authorized over the Internet.

Changes in the ACH network mean not only changes to rules and regulations, but also changes to the way financial institutions conduct business. How can you stay on top of changes in the rules and regulations governing ACH transactions?

Until now, there has been no single resource to assist financial institutions with:

• Managing ACH transactions.
• Reporting problems.
• Ensuring compliance with the rules and regulations.
• Minimizing risk via audits and controls.
• Establishing policies and procedures for the financial institution.

Sheshunoff's Automated Clearing House Transactions: Operations, Compliance, and Audit offers step-by-step guidance for operating ACH transactions efficiently and in full compliance with the Operating Rules of the National Automated Clearing House Association, along with Regulation E, Regulation CC, and UCC Article 4A.

This manual and CD can help your financial institution with:

• Understanding your responsibilities as an originating or receiving financial institution.
• Returning items with the correct code and within the allowed time frame.
• Obtaining and completing the written statement under penalty of perjury.
• Conducting a self-audit.

Minimize Your Institution’s Risk of Loss from ACH Problems

Noncompliance with the ACH rules can create the reporting of a possible rules violation, potentially resulting in a fine to your financial institution. Lack of ACH risk management policies and well-documented operational procedures can expose your financial institution not only to a financial loss, but also loss of a customer or member, and can even result in damage to the institution’s reputation.

Using the proper codes to return entries or to send change information and adhering to time frames is a critical part of the ACH process. Even if you use a third-party service provider, you may retain potential liability as an originating or receiving institution.

Automated Clearing House Transactions: Operations, Compliance, and Audit can help you minimize your ACH risk with:

• Compliance tips to help financial institutions avoid potentially costly violations of federal regulations
• Guidance for completing the Written Statement Under Penalty of Perjury — a valuable training tool for receiving financial institutions
• Explanation of file formats and file contents to ensure correct coding of transactions
• Amplification of return reason codes and their usage to prevent losses that could result from using the wrong codes to return entries or send change information
• ACH Risk Management policy considerations — areas of major risk and strategies for minimizing exposure
• Audit steps — guidance and a sample audit policy to assist financial institutions and third-party service providers in conducting the required annual self-audit each year
• Author’s expertise — Marge Simmons is an Accredited ACH Professional and Certified Cash Manager, and a frequent speaker on all areas of the electronic payments industry

The accompanying CD includes the entire contents of the manual so you can customize the sample materials for your institution.

Expert Tips Help You Manage Your ACH Transactions

Staying informed can be a challenge. Updated periodically, Automated Clearing House Transactions: Operations, Compliance, and Audit is an excellent tool for financial institutions to keep themselves in compliance and up-to-date.

Highlights of Our Latest Update Table of Contents How to Use This Manual Look Inside This Book!*
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About Margaret L. Simmons

Margaret L. Simmons is President of Electronic Payments Advisory Services. Her 30+ years of experience in the area of electronic payments includes development of ACH software, management of Michigan’s ACH association, and 12 years in Treasury Management. Throughout her career, Marge has been directly involved with the electronic payments industry through participation in many national councils, committees, and work groups. She has been an instructor at NACHA’s Payments Institute, provides training services to regional payments associations, and is a nationally recognized speaker on topics related to all facets of the electronic payments industry. Consulting services offered by her company include training, ACH audits, and expert witness testimony. She has earned the permanent designations of Accredited ACH Professional (AAP) and Certified Cash Manager (CCM).See all works by Ms. Simmons