Frequently Asked Questions
How does ACH Credit Origination (Direct Deposit) work?
Direct deposit is the most common transaction using the ACH network. Direct deposit allows a business to pay an employee for payroll, expense reimbursements, bonuses, and dividends to a checking or savings account at a financial institution located in the U.S.
How does ACH Debit Origination (Direct Payment) work?
ACH Debit payments are recurring payments to you. Your customer may give you written authorization to have their payment debited directly from their checking or savings account at a financial institution located in the U.S. This can be used to collect club dues, rent, utility, insurance, and mortgage payments.
APPLYING FOR ACH ORIGINATION & REQUIREMENTS
Who can apply for Online Banking ACH Services?
The member who completes the Business Online Banking Application, referred to as the SESLOC Business Online Banking Administrator, can apply for Business Online Banking ACH Services.
How do I apply for Online Banking ACH Services?
Contact us at (805)543-1816. Our Treasury Manager will work with you to get you set up.
What are the requirements for Business Online Banking ACH Services?
The following are requirements for Business Online Banking ACH Services, the business must:
- Been in business for at least 2 years if Credit Underwriting is required.
- Satisfactory FICO scores.
- Other requirements may apply.
How will I know if the business has been approved for Business Online Banking ACH Services?
Our Treasury Management department will contact the SESLOC Business Online Banking Administrator.
How will I be notified if the business is denied Business Online Banking ACH Services?
If your ACH application is denied, you will be contacted by a SESLOC employee
What types of transactions can be processed through Business Online Banking ACH Services?
The following services can be processed through Business Banking ACH Services:
|ACH Payroll||Sends funds to numerous recipients at the same time through ACH Batch payment.|
|ACH Single Pmts||Send funds to a single recipient through the Automated Clearing House (ACH) system.|
|EFTPS (Tax Pmts)||Send funds to a Federal, state, or local tax authority using the Electronic Federal Tax Payment System (EFTPS).|
|ACH Payments||Send funds to multiple recipients through the ACH.|
|ACH Collections||Collect funds from multiple recipients through the ACH.|
|ACH Single Receipts||Collect funds from a single recipient through the ACH.|
|ACH Pass Thru||Upload a complex NACHA-format file that includes multiple ACH batches.|
What are the ACH Transaction Limits?
Transaction limits are determined on a case by case basis. We will work with you to determine the exact limits for your business.
How do ACH Transaction Limits work?
ACH transaction limits are calculated based on processing date (withdrawal date), not the date when the transaction was drafted or approved.
How do I stay informed of changes that may affect processing my ACH file?
As part of your ACH Agreement with SESLOC, you are required to stay up to date of industry changes. We recommend you reference nacha.org for ACH rules changes.
How are ACH transactions approved?
Every ACH transaction requires an approval code. You will obtain the approval code from a hard token (Security Token). The security token provides a 6-digit code that is used in SESLOC Business Online Banking to approve the ACH transaction(s). Each approver will have their own security token.
Is a Security Token needed for someone that will have only draft capabilities?
No. A security token is only needed for Transaction Approvers.
In SELSOC Business Online Banking, where can I see the ACH transactions that have been scheduled?
ACH transactions that have been scheduled in SESLOC Business Online Banking can be found in the Activity Center located under Online Activity.
What is the cutoff time for processing ACH transactions?
Transactions must be submitted prior to 3:00 p.m. on a business day to be included in that day’s processing.
Where are the fees associated with Business Banking ACH Origination located?
The fees associated with Business Online Banking ACH Origination are located in the Business Services Fee Schedule.
|ACH – Automated Clearing House||The primary system that agencies use for electronic funds transfer.|
|ACH Credit||A withdrawal from the SLESOC account.|
|ACH Debit||A deposit to the SESLOC account.|
|ACH Operator||The central clearing facility (either the Federal Reserve Bank or the Clearing House) that receives entries from ODFIs, distributes the entries to RDFIs and performs settlement functions.|
|ACH Pass Thru||ACH Pass Thru is used to load and submit properly formatted NACHA-format files. The file can contain one or more batches, both debit and credit batches and multiple SEC Codes.|
|CCD – Corporate Credit or Debit||Used for transfers between business accounts (Business to Business).|
|EPN – Electronic Payments Network||An electronic automated clearing house (ACH) that services as the sole ACH for the private sector in the United States.|
|Hard Token||A fob provided by SESLOC that is assigned to every ACH approver. The approver provides an access code that must be entered in SESLOC Business Online Banking to approve an ACH transaction.|
|NACHA – National Automated Clearing House Association||The national organization that maintains the operating rules, standards and procedures that govern all ACH activities and procedures.|
|ODFI||Originating Depository Financial Institution|
|Originator||The person or organization that has authorized an Originating Depository Financial Institution (ODFI) to transmit a credit or debit entry to the account of a receiver with a Receiving Depository Financial Institution (RDFI).|
|PPD – Prearranged Payment and Deposit Entry||A prearranged entry to or from a consumer account, for example, direct deposit of payroll (Business to Consumer or Consumer to Consumer).|
|Prefunding||Prefunding requires that the funds be available in the SESLOC account on the day the transaction is scheduled and processed. All ACH Credit transactions being sent out of SESLOC will be pre-funded.|
|RDFI||Receiving Depository Financial Institution|
|Receiver||An individual, corporation, or other entity that has authorized an originator to initiate a debit or credit ACH entry to an account held at a Receiving Depository Financial Institution.|
|SEC (Standard Entry Class) Code||Standard Entry Class code required by NACHA rules for every ACH transaction.|
|The Clearing House Payments Authority||The association designed to provide payment system support and education for payment professionals.|