Automated Clearing House (ACH) Direct Deposit - Key

Transcription

Table of Contents
1. INTRODUCTION.............................................................................. 1
2. HISTORY OF THE AUTOMATED CLEARING HOUSE .......................2
3. UNDERSTANDING DIRECT DEPOSIT ..............................................3
A. How Does Direct Deposit Work?............................................3
B. Company Benefits of Direct Deposit of Payroll........................4
C. Company Questions and Answers .........................................5
4. UNDERSTANDING ROUTING AND TRANSIT NUMBERS .................8
5. EMPLOYEE QUESTIONS AND ANSWERS .....................................10
6. PROMOTIONAL INFORMATION .....................................................12
A. Employee Advantages .........................................................12
B. Sample of Employee Letter ..................................................13
C. Sample of Bulletin Board Announcement .............................14
D. Pay Check Stuffer ................................................................15
7. LIST OF EXHIBITS ..........................................................................16
A. Authorization Agreement......................................................17
B. ACH File Specifications ........................................................18
C. Sample ACH Reports...........................................................27
D. ACH Transmissions .............................................................32
E. ACH Codes .........................................................................37
F. Processing Schedule: Pay Date & Holiday Schedule ............38
G. Direct deposit Cost Benefit Analysis Worksheet ...................41
H. ACH Contact List.................................................................42
I. Directory of KeyBank Routing and Transit Numbers..............43
Please Note: The information in this tool kit, while correct at the time of its publication, is subject to
change without prior notification.
ACH Direct Deposit User Guide | i
1. INTRODUCTION
This tool kit is designed to help you obtain greater cost savings and other benefits through employee
participation in your direct deposit program.
Inside you will find:
a) Information about the Automated Clearing House (ACH)
b) How direct deposit works
c) Answers to commonly asked questions about direct deposit
d) Promotional ideas for increasing participation
We hope that this information will help in planning your employee communications, and in promoting
increased use of direct deposit.
We are pleased to have the opportunity to serve you. Please let us know if we can assist you further in
developing your direct deposit program.
- KeyBank Global Treasury Management & Corporate Product Management
ACH Direct Deposit User Guide | 1
HISTORY OF THE AUTOMATED CLEARING HOUSE
The Automated Clearing House (ACH) began in the late 1960’s when a group of California bankers formed
the Special Committee on Paperless Entries (SCOPE). This committee was formed in direct response to the
rapidly growing volume of paper checks being processed through the national check clearing system. The
committee was chartered to explore the technical, operational and legal framework necessary for an
automated payment exchange system.
SCOPE laid the groundwork for the first Automated Clearing House association which began in 1972. This
led to the formation of similar groups in other parts of the country. In California, as in most other areas,
agreements were made between the emerging local ACH associations and the Federal Reserve Banks
serving those areas, to provide the facilities, equipment, and staff to operate the local ACH.
In 1974, the National Automated Clearing House Association (NACHA) was formed to coordinate the
activities of the local ACH associations and to establish a national system for exchanging entries among the
different ACH regions. Through the joint efforts of NACHA and the Federal Reserve System, the local ACHs
were linked electronically on a nationwide basis by 1978.
Today there are ACH associations serving over 20,000 financial institutions across the United States. These
financial institutions provide ACH-based services to 300,000 corporations/organizations and millions of their
clients.
KeyBank and its affiliates originate approximately 245,000,000 ACH items annually.
Direct Deposit User Guide | 2
UNDERSTANDING DIRECT DEPOSIT
A.
How Does Direct Deposit Work?
At KeyBank, ACH processing is done through a state of the art software package, known as PEP+.
This software helps us ensure that your transactions are delivered to the Automated Clearing House
for distribution on time and that all files are accurate.
Here’s how the process works:
1. Your employees who participate in the program sign authorization forms, which allow you to
deposit their earnings directly into their accounts at the financial institution of their choice.
2. Based on the authorization forms, your company prepares a transmission in the standard
NACHA format. A record is created for each participant that includes the net deposit, bank
account number and financial institution Routing and Transit number. If an employee changes
banks or account numbers, the employee must notify you so that the appropriate records can
be changed to ensure their direct deposit is sent to the correct account.
3. While prenotification is optional, the first transactions you create may be prenotes for all
employees who have signed up for direct deposit. A prenote is a zero dollar entry that must be
sent through the ACH system at least ten (10) calendar days prior to the first actual payroll entry.
The prenote is used to let the employee’s bank, savings & loan or credit union know that an
actual credit to the employee’s account is forthcoming. The receiving financial institution verifies
the employee’s account number and related information. If any information included in the
direct deposit entry is incorrect, the receiving financial institution has ten (10) calendar days to
notify KeyBank of the error. This is known as a Notification of Change. KeyBank delivers
various hard copy reports, which notify your company of the necessary changes. Whenever
you add a new employee to the direct deposit program, it is recommended that a
prenote entry be generated.
4. You continue to furnish the statement of earnings to your employee on payday.
5. The transmission is normally delivered or sent to KeyBank by 10:00 A.M. two business days
prior to the effective pay date. This time may be extended to 3:00 P.M., but in the event of a
problem with the file, there may not be sufficient time to remake it for processing that day.
(Transmission times may vary.) Our preferred method of receiving files is via transmission.
6. KeyBank will process the file, balance the entries, and retain those deposits which belong to
KeyBank accounts.
7. The file is then forwarded to the Automated Clearing House facility at the Federal Reserve Bank.
The Automated Clearing House balances and validates the remaining transactions. The items
are then sorted and distributed to the designated financial institution.
8. The funds are normally available to your participating employees on the morning of payday.
Deposits are reflected in the employee’s next bank statement.
KeyBank stands ready to provide operational, technical, educational, and marketing assistance to
ensure your Direct Deposit Program is a success.
B.
Company Benefits of Direct Deposit of Payroll
•
Advanced knowledge of cash flow. Electronic funds transfers are predictable and clear in less
time than checks, which can improve the company’s control of its cash flow.
•
Direct Deposit can be offered as an employee benefit and may strengthen employee relations.
KeyBank offers a comprehensive Group Banking Program, which provides individual benefits to
those employees who bank at KeyBank and receive direct deposit. Most of the benefits are
provided at no cost to your company. We would also encourage you to explore Group Banking
plans with the other major financial institutions in your marketplace. A summary of KeyBank’s
Group Banking benefits has been enclosed.
•
Improved employee productivity - reduces employee time spent cashing checks on payday.
•
Improved company image - as a modern, innovative company.
•
Cost savings. Based on nationwide surveys, each paycheck that is converted to an electronic
deposit saves $.10 - $.23 on paycheck issuance and reconcilement costs.
•
Administrative efficiencies:
−
−
−
−
−
Reduced item to print and write checks (process payroll).
Eliminated or reduced reconcilement costs.
No lost or stolen checks, or resultant stop payments and reissues.
No confusing or special handling of checks for absent employees.
Lower per item costs for printing and handling payroll information notices.
C.
Company Questions and Answers
Q. Not all my employees bank with the same financial institution. Can they receive
direct deposit of their pay?
Yes, the originating financial institution, KeyBank, is your connection with the ACH system, which
automatically distributes your employees’ pay to any ACH member bank, savings and loan or credit
union designated by your employees. Your employees are free to bank where it is most convenient
for them.
Q. I have employees all over the country. How do I know this system will work the same
way everywhere?
The ACH payment mechanism is a nationwide electronic payment system where all participating
financial institutions follow the NACHA operating rules and regulations.
Q. What has been the employee reaction to this program?
Employees, clients, organizations and corporations report strong favorable reactions.
Q. How will my employees get their money?
Employees can obtain their money by cashing a personal check, using an automated teller machine,
or drawing from their deposit accounts. The cash they need will be there waiting for them when
they need it. They won’t have to pick up their paycheck, stand in line, and deposit it themselves.
They will still receive a pay stub which will verify deposit of their funds.
Q. What if some of our company’s employees want to send part of their pay to a
checking account and the other part of their savings account?
This is a “split deposit.” The ACH system can handle split deposits even if the accounts are at
different financial institutions.
Q. Do all my employees have to agree to use direct deposit?
No. But the more who use it, the greater the savings to you. That’s really a matter to be worked
out between you and your employees. Many companies strongly encourage new employees to
receive direct deposit by treating a check as an exception. Each state has different rules regarding
whether direct deposit can be mandatory.
Q. What if some of my employees don’t have checking accounts?
They will need to open a checking or savings account in order to receive their direct deposit
transaction. It is to your advantage to encourage them to open one. The more your employees
participate in the program, the greater savings to you.
Q. What kind of employee participation can I expect?
The participation depends on the type of services offered, the geographical area involved and how
much you promote it, by word of mouth, pay envelope stuffer, etc. We can assist you in developing
your promotional strategy.
Q. How will ACH deposit be indicated on our employees’ bank statements?
The NACHA rules require that, at a minimum, the date and the amount of the transaction, as well as
the source and purpose must be made available to them.
Q. Will errors be difficult to trace and correct?
The opposite is actually the case. By automating the payments system, errors are minimized.
KeyBank’s Cash Management and ACH staff are available to help in any way necessary.
Q. Won’t I lose float?
You will have to determine the amount of float that might be lost based on your own situation.
Banking studies indicate that float has decreased substantially as a result of efforts to improve the
efficiency of the nation’s check collection system. Many companies have discovered that the loss of
float is offset by savings on check processing charges, in-house reconcilement costs, check
safekeeping, stop payment charges, and check re-issue charges.
Q. Will it be expensive to convert our present program to supply the necessary input?
By involving your data processing people, a precise cost and timetable can be established. Many
payroll software packages already have a direct deposit option built in. Once an ACH system is in
place, the savings start adding up because the ACH system is less expensive to operate. And the
more the system is utilized, the greater the savings.
Q. If I use direct deposit, I’ll still have to run two systems.
It’s really one system. You’ll find that the automated portion is derived from your present method
and will be less expensive. The more you convert to the automated mechanism, the more you’ll
decrease your present costs.
Q. I don’t have an automated payroll system now.
That’s okay. We’ll show you how to set up the automation needed.
Q. It sounds complicated.
It really isn’t. The only complicated part is the operational portion within the ACH system and we do
that for you. Once the system is in place, your company’s job is actually simplified.
Q. I can’t meet your input schedules. What are my options?
There are two options that are recommended. You could either advance your processing cycle by
one day or adjust your payday. Many companies have found that these adjustments, when
necessary, are readily accepted - and the benefits received more that compensate for the
adjustment.
Q. Does this make payroll information accessible to people who don’t need to have it?
Exactly the opposite. Direct deposit is much more secure. Under normal procedures, a check
passes through as many as 10-12 hand in the clearing process... including grocery store clerks,
tellers, etc. With direct deposit, this is handled on magnetic tape, transmission or PC based
software and no one sees the individual transactions.
EMPLOYEE QUESTION AND ANSWERS
Q. I consider how much money I make a confidential matter. Will this new bank service
infringe on this confidentiality?
No. The payroll information, which goes from the company to its bank is highly secure. Your pay
slip will contain the same information now contained on your check. Direct Deposit will also
eliminate tellers, grocery store clerks, etc. from seeing your paycheck.
Q. What if I have started ACH Direct Deposit and want to drop it?
If you have signed an authorization for direct deposit of payroll, you will need to notify your employer
to cancel the authorization.
Q. Do I have to use a certain financial institution to participate in the system?
No. The majority of financial institutions participate. Almost no one will need to change banking
relationships to have his of her pay deposited automatically on payday.
Q. Must I have a checking or savings account to use the payroll deposit plan?
Yes.
Q. Can I have a set amount of money each month automatically deposited into a savings
account?
Yes. You can specify with your employer’s payroll department the dollar amount you wish to be
deposited into a savings account each pay period.
Q. How will I know how much money is being deposited into my checking account?
You will receive an earnings statement from your employer giving complete information including the
net amount you are paid. This is the amount that will be deposited into your checking account.
Q. Is my financial institution required to send a deposit confirmation to me at the time a
direct deposit of payroll entry is posted?
No. Since the employer is still required to provide you on payday with an accounting record of
earnings and deductions, that statement will be your notification. You will also see your direct
deposit entry on your regular monthly bank statement.
Q. What if an error is made?
We don’t expect any, but if one should occur it can be easily corrected. There are trained personnel
at your company and at your financial institution who fully understand the direct deposit and
automated payment systems. These individuals stand ready to investigate and resolve any
problems.
Q. I want my check in my hand first.
With direct deposit you can have all your earnings information (pay stub) in your hand, and your
money in the bank.
Q. How do I know how much I made?
Your company will continue to issue you a “pay stub” detailing gross earnings, net earnings, and
other payroll related information.
Q. I have to go to the bank anyway; can I just deposit my check then?
Why go on the busiest days at the bank? You can avoid the lines and hassles by going to the bank
when it is convenient for you, or by using automated teller machines.
Q. What if my institution is not involved with direct deposit?
Most financial institutions are involved with direct deposit. However, if yours is not, contact your
employer to make the necessary arrangements.
Q. I do not want my spouse to know how much I make.
The employee should check with his or her employer to see if the pay can be deposited to two
separate accounts so that the spouse may only see some portion of the pay.
Q.
Does the Federal Government use the ACH network?
The Federal Government is the largest user of the ACH network, initiating over 500 million
transactions annually.
PROMOTIONAL INFORMATION
A. Employee Advantages
1. Safe and Secure
a. Eliminates possibility of lost or stolen checks.
b. Tends to reduce the amount of cash carried, reducing hazards associated with carrying
cash.
c. Deposit is posted to account more quickly, reducing possibility of overdrafts.
2. Convenient
a. The cash is in the employee’s account at the beginning of the day on payday.
b. Reduces requirement to go to the bank to wait in long lines on busy days or make it to
the bank during banking hours.
c. Receive pay, with access to fund, even when absent or away from home. No need to
make special arrangements.
d. For those working different shifts, eliminates the need for special trips to obtain and
deposit paychecks.
e. Provides faster access to funds, which are available on payday without waiting for
checks to clear.
3. Confidential
a. Payroll data is more confidential-tellers, grocery clerks don’t see your paycheck. It is
processed electronically rather than handled by people.
b. Continue to receive complete earnings statement every payday, showing gross pay,
deductions, net pay and other information.
4. Improved Money Management
a. The money is already in the bank. Encourages savings and good money management.
b. May reduce bank service charges, and will in some cases there may be no charge for
electronic deposits. Employees will need to check with their financial institution for
service charges and benefits.
c. Provides a consistent statement and historical record of financial/pay transactions.
D. Sample of Pay Check Stuffer
DIRECT DEPOSIT IS HERE!
Now you can avoid the chore of rushing to your bank, savings &
loan, or credit union each payday to deposit your paycheck-or to
the grocery store to cash it. No more worries about lost, or stolen
paychecks. No more hassles when your on vacation, sick or
traveling on payday.
How? Through the direct deposit payroll program offered by
(Company Name). With your authorization, we will automatically
deposit your pay in your account at your bank, savings & loan, or
credit union. Each payday your money will be in your account
ready for your use at the beginning of the day.
On payday you’ll continue to receive from us your earnings
statement, the form that lists your gross pay, deductions, and the
net amount deposited in your account.
Just imagine, studies indicate that employees in the U.S. spend an
average of 8 1/2 hours each year waiting in line to deposit
paychecks. Now you can spend that time doing the things you
enjoy.
The authorization form is enclosed. Please fill it out right away and
return it to Payroll. The payday after the form is processed, your
money will be automatically deposited for you.
With direct deposit, your payday can be worry-free!
LIST OF EXHIBITS
A.
Sample of Authorization Agreement/Form
B.
ACH File Specifications
C.
Sample ACH Reports
D.
ACH Transmissions
1) KeyBank Secure File Transfer Protocol Request Form
2) KeyBank File Transfer Protocol Guidelines
3) Data Transmission Request Form
E.
ACH Tape Specifications
F.
ACH Codes
G.
2008 Federal Reserve Holiday Schedule
H
Direct Deposit Cost Benefit Analysis Worksheet
I.
Processing Schedule: Delivery Date/Pay Date Schedule
J.
ACH Contact List
K.
Directory of KeyCorp Routing and Transit Numbers
A. Sample of Authorization Agreement/Form
AUTHORIZATION AGREEMENT FOR
AUTOMATIC DEPOSIT (ACH CREDITS)
COMPANY NAME _______________________ COMPANY ID NUMBER__________
I (we) hereby authorize _____________________, hereinafter called COMPANY, to initiate
credit entries and to initiate, if necessary, debit entries and adjustments for any credit entries
in error to my (our)
Checking
Savings account (select one) indicated below and the
depository named below, hereinafter called DEPOSITORY, to credit and/or debit the same to
such account.
Depository Name:______________________________Branch:_____________________
City:__________________________________State:_____________Zip:_____________
TRANSIT ABA NO. _____________________ACCOUNT NO.___________________
This authority is to remain in full force and effect until COMPANY has received written
notification from me (or either of us) of its termination in such time and in such manner as to
afford COMPANY and DEPOSITORY a reasonable opportunity to act on it.
Name:_________________________________ ID Number: _______________________
(Please Print)
Date:___________Signed: _________________Signed: __________________________
(On a joint account both parties must sign)
B. ACH File Specifications
1.1
Sequence of Records in ACH Files
Each file has a File Header record and ends with a File Control record. Within files are any number of
batches. Batches begin with a Batch Header record and end with a Batch Control record. Within
batches are Entry Detail records. The number of addenda records that follow each entry is dependent
on the Standard Entry Class Code. The file sequence is shown in the diagram entitled “Record Layout
Sequence” on page 21.
1.2
File Structure
File Header Record
The File Header Record identifies the immediate origin (Sending Point or ACH Operator) and
destination (Receiving Point or ACH Operator) of the entries contained within the file. In addition, this
record includes date, time, and file identification fields which, can be used to identify the file uniquely.
Company/Batch Header Record
The Company/Batch Header Record identifies the Originator and describes the prearranged paperless
debit or credit. For example, “GAS BILL” or “REG SALARY” indicates the reason for the transaction.
The Company/Batch Header Record contains the Routing and Transit Number of the Originating
Depository Financial Institution (ODFI) for settlement, routing of returns, and other control purposes. In
addition, the Company/Batch Header Record can indicate the intended effective entry date of all
transactions within the batch.
Entry Detail Record
Entry Detail Records contain individual DFI account number, identification number, name, and the
debit or credit amount as indicated by the Transaction Code.
Transaction Codes for Entry Detail Records have been defined to accommodate prenotification
records, zero dollar entries, and return entries.
Prenotifications are identical to the basic entry format but contain appropriate Transaction Codes and
Zeros in the Amount field. Prenotifications can be batched with other dollar entries or batched
separately.
Return entries are distinguished by special Transaction Codes and must be batched separately from
other dollar entries. See page 24 for detailed record layout.
Company/Batch Control Record
The Company/Batch Control Record contains the counts, hash totals, and total dollar controls for the
preceding detail entries within the indicated batch.
All Entry Detail Records are hashed. Both Entry Detail Records and Addenda Records are included in
the entry/addenda counts; Batch Header and Batch Control Records are not included. See page 25
for detailed record layout.
File Control Record
The File Control Record contains dollar, entry, and hash total accumulations from the Company/Batch
Control Records in the file. This record also contains counts of the number of blocks and the number
of batches within the file (or batched data transmitted to a single destination). See page 26 for
detailed record layout.
Record Layout Sequence (NACHA Format)
FILE HEADER RECORD
- ONE PER FILE - FIRST LOGICAL RECORD
- ONE PER BATCH
BATCH HEADER RECORD
1ST ENTRY DETAIL RECORD
2ND ENTRY DETAIL RECORD
ETC....
LAST ENTRY DETAIL RECORD
- ONE PER BATCH
BATCH CONTROL RECORD
BATCH HEADER RECORD
1ST ENTRY DETAIL RECORD
ETC...
LAST ENTRY DETAIL RECORD
BATCH CONTROL RECORD
ETC...
FILE CONTROL RECORD
- ONE PER FILE - LAST LOGICAL RECORD
9999...99999
- FILE USED TO COMPLETE LAST PHYSICAL BLOCK
C. Sample ACH Reports
I.
Adjustment Activity Completed Today:
This section details the on-line changes that have been made to your file on your behalf. For example,
detail deletes, file deletes, and batch effective date changes are all included in this section if they were
entered today. This section details activity, which occurred today regardless of settlement date.
II.
Notifications of Change:
This section details any notifications of change on items originated by your company. They are treated
as if they settle and will appear on this section on the day they “settle”. While this information does not
affect settlement, it is information you should receive on a regular basis to update your records.
III. Items Returned:
This section details any returns of originated items. Only those returns which have settled today are
included.
IV. Adjustment Activity Affecting Settlement Today:
This section details on-line changes, which affect settlement today. This section differs from
Adjustment Activity Completed Today in that this activity could have taken place on an earlier date, but
did not settle until today. This section details any adjustment activity which settles today, regardless of
when the adjustment occurred.
V.
Settlement Reconciliation for Today:
This section is a summary. It shows the net settlement to the account today by indicating the original
amount of settlement to the file and the total adjustment activity. Return Item settlement is listed
separately, as are reversals.
Remote Site Information
1)
Company Name
Self-explanatory
2)
Company Address
Self-explanatory
3)
Client Operations Contact
Person at company responsible for file to be transmitted and/or
creates and sends file
4)
Telephone and Fax
Self-explanatory
5)
Staffing Hours
Days of week and hours per day this person is available
6)
Client Technical Contact
Person at company knowledgeable about data communications
setups
7)
Telephone and Fax
Self-explanatory
8)
Staffing Hours
Days of week and hours per day this person is available
9)
Protocol
Select one
10)
Application
Check ACH, ARP or Lockbox (LBS) Only
11)
Transmission Frequency
Check One
Daily plus = more than one per day
12)
Data Transfer Direction
Check One
Inbound to Key = Client sends file to Bank
Outbound from Key = Client retrieves file from Bank
13)
Type of Request
Addition = New Transmission
Change = Change, e.g. protocol
Deletion = Cancel Service
Technical Review = Requires review by data center personnel to
determine feasibility
14)
Site
Check One
Transmission goes to or originates from specified data center
15)
Requester/Sales Officer
CMSO
16)
Telephone
CMSO Phone Number
17)
Logon ID
CMSO Mainframe ID., e.g., HYLANMI
18)
Dates
Enter Request Date Only
2) KeyBank File Transfer Protocol Guidelines
ENCRYPTION
Encryption is required for all FTP’s with KeyBank. Key provides 2 encryption options:
1. FTP with PGP encryption (signing optional)
2. FTP/TLS
FIREWALL
Key requires trading partners to have a static public source IP address, or limited range of addresses. The
source address must be added to our firewall policy prior to your connecting. Key should be notified in
advance of any changes to your IP address(es). Firewall updates may take up to 10 business days to
complete
FTP/TLS
TLS (Transport Layer Security) is generally compatible with FTP/SSL. Key’s FTP server supports explicit
(AUTH SSL) TLS using the control port 2021. Key’s firewall does not allow FTP/TLS connections on port 21,
either inbound or outbound. Client certificates are not required.
PASSIVE MODE
Key requires you to connect to our FTP server using passive mode. In passive mode, Key’s FTP server
listens for data connections on ports in the range 2030-2040. If necessary, configure your firewall to allow
outgoing connections to Key on these ports.
ACTIVE MODE
Generally, Key does not support active mode. If your ftp client binds to a LIMITED range of data ports in
active mode, Key may be able to accommodate those ports. Note that most command line ftp clients
(Solaris, Microsoft) use random high ports for data connections and cannot open data connections with Key
in active mode.
SFTP
Key does not currently support S/FTP or Secure Copy using SSH.
TEST SERVER
Key’s test FTP server uses port 2021 for control connections for all ftp traffic.
E. ACH CODES
This is a listing of the most commonly used transaction and other codes required in the NACHA file layouts
described in Exhibit B.
SERVICE CLASS CODES
200
ACH Entries Mixed Debits and Credits
220
ACH Credits Only
225
ACH Debits Only
280
ACH Automated Accounting Advices
STANDARD ENTRY CLASS CODES
ARC
Accounts Receivable Conversion
CBR Corporate Cross Border Payment
CCD Cash Concentration or Disbursement
CIE
Customer Initiated Entries
CTX
Corporate Trade Exchanges
MTE Machine Transfer Entries
PBR Consumer Cross Border Payment
POP Point of Purchase Entry
POS Point of Sale
PPD Prearranged Payments and Deposits
RET
Automated Returns
RCK Re-presented Check Entry
SHR Shared Network Transaction
TEL
Telephone Initiated Entries
TRC Truncated Entries
TRX
Truncated Entries (w/Addenda)
WEB Internet Initiated ACH Entries
XCK Destroyed Check Entry
ORIGINATOR STATUS CODES
1
This code identifies the Originator as a depository
financial institution which has agreed to be
bound
by the NACHA rules
2
This code identifies the Originator as a federal
government entity or agency not subject to the
NACHA rules.
ADDENDA TYPE CODES
02
Point of Sale Entry (POS), Shared Network
Transaction (SHR), or Machine Transfer Entry (MTE)
terminal location description.
05
Special Addenda Information (Addenda Record(s)
apply to CCD, CIE, PPD and CTX entries
98
Automated Notification of Change
99
Automated Return Entry
ADDENDA RECORD INDICATOR
0
No Addenda Record(s) follow
1
Addenda Record(s) follow
LOAN ACCOUNT CREDIT RECORDS
51
Automated Return or Notification of Change for
original
transaction code 52,53, or 54.
52
Automated Loan Account Deposit (Credit)
53
Pre-notification of Loan Account Credits
Authorization (non-dollar)
54
Zero dollar with remittance data (for CCD &
CTX only)
55
Automated Loan Account Debit (Reversals Only)
56
Automated Return or Notification of Change for
original transaction code 55
TRANSACTION CODES
Demand Credit Records (for checking, NOW, and share draft accounts)
20
Reserved
21
Automated Return or Notification of Change for original transaction code 22 or 23
22
Automated Deposit
23
Pre-notification of Demand Credit Authorization (non-dollar)
24
Zero dollar with remittance data (CCD,CTX) Demand Debit Records (for checking, NOW, and share draft accounts)
25
Reserved
26
27
Automated Payment
28
Pre-notification of Demand Debit Authorization (non-dollar)
29
Zero dollar with remittance data (CCD, CTX) Savings Account Credit Records
30
Reserved
31
32
Pre-notification of Savings Credit Authorization (non-dollar)
34
Zero dollar with remittance data (CCD, CTX) Savings Account Debit Records
35
Reserved
36
37
Automated Payment
38
Pre-notification of Savings Debit Authorization (non-dollar)
39
Zero dollar with remittance data (CCD, CTX)
ACH Origination Schedule Procedures Instruction
To insure timely processing, Direct Deposit (credit) files must be delivered at least two (2) banking
business days prior to the effective date, one (1) banking business day for Prearranged Payments
(debits). When a bank holiday (see below) occurs during a processing cycle, one (1) additional
banking business day is required to process transactions through the ACH network.
2008 Observed Bank Holidays
New Year’s Day
M. L. King’s Birthday
Presidents’ Day
Memorial Day
Independence Day
Labor Day
Columbus Day
Veterans’ Day
Thanksgiving Day
Christmas Day
Tuesday, January 1, 2008
Monday, January 21, 2008
Monday, February 18, 2008
Monday, May 26, 2008
Friday, July 4, 2008
Monday, September 1, 2008
Monday, October 13, 2008
Tuesday, November 11, 2008
Thursday, November 27, 2008
Thursday, December 25, 2008
G. Direct Deposit Cost Benefit Analysis Worksheet
I.
II.
Initial Investment
1. 20% of cost modifications to payroll system or
cost of PC payroll software (amortized over 5 years)
$_________
Annual Costs
2. Collection of authorization forms and file maintenance
$_________
3.
Bank service charges for direct deposit
3a. Third party payroll vendor fees if applicable
$_________
$_________
4.
Lost float on payroll dollars
$_________
TOTAL ANNUAL COSTS
III.
$_________
Annual Savings
5. Bank service charges per check @ ___________
(per item x number of checks issued)
$__________
6.
Bank service charges for reconcilement
$__________
7.
In-house reconcilement costs
$__________
8.
Bank service charges for stop payments
$__________
9.
Check reissue costs (cost per reissue x number of reissues)
$__________
10. Check printing costs
$__________
11. Check storage costs
$__________
12. Check cashing service charges
$__________
13. Employee lost time to cash checks
$__________
14. Reduction in cost of mailing checks (US mail and/or express mail).
A stub may still have to be sent but the overall cost should
go down.
$__________
TOTAL ANNUAL SAVINGS
$__________
IV.
Net Addition to Profits
Annual Savings - (minus) Annual Costs
$__________
I. Directory of KeyBank Routing and Transit Numbers
Bank Name
Routing and Transit Number
Northwest Group
KeyBank of Alaska .................................................................................. 1252-0087-9
KeyBank of Oregon................................................................................. 1230-0201-1
KeyBank of Washington .......................................................................... 1250-0057-4
Rocky Mountain Group
KeyBank of Colorado .............................................................................. 3070-7026-7
KeyBank of Idaho.................................................................................... 1241-0155-5
KeyBank of Utah ..................................................................................... 1240-0073-7
Midwest Group
KeyBank National Association (Ohio)....................................................... 0410-0103-9
KeyBank National Association (Indiana)................................................... 0712-0053-8
KeyBank National Association (Michigan) ................................................ 0724-0104-8
KeyBank National Association (Florida).................................................... 0670-1418-1
Northeast Group
KeyBank of Maine ................................................................................... 0112-0060-8
KeyBank of New York ............................................................................. 0213-0007-7
KeyBank of Vermont ............................................................................... 2116-7253-1
KeyBank of New Hampshire ................................................................... 0114-0200-8

Automated Clearing House (ACH) Direct Deposit - Key

Transcription

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