Your failure to understand the rules could result in fines of $10,000 per month until the problem is resolved!
Using the ACH is a powerful and convenient addition to your receivables management tools. It brings with it some very important responsibilities. You lack of understanding of these responsibilities could result in grave consequences for you and your company.
This article is intended to provide you with the essential information you need in order to operate a successful ACH program without encountering an uninformed failure to comply with established rules which could result in the levying of fines against your company.
The information in the article provides important general information for all ORIGINATORS (your company).
It is vital that anyone in your firm that is connected to acquiring information from you RECEIVERS (those you send debit or credit transaction to), handling that information, in any way, or responsible for interacting with an ACH system, read and understand this information.
As an approved ACH Originator, you have contracted with a Third Party Processor, to transmit transactions through d Clearing House to receiver's bank accounts.
1. Authorizations: Before transmitting the first debit or credit to a receiver's account, authorization for each transaction must be obtained in the manner prescribed for the SEC Code (standard entry class) being utilized by the Originator and maintained, available for retrieval upon request by the Receiver (records kept for two years).
2. Timeliness of entries: Each credit entry has to be timely and each debit entry has to be due and owing from the Receiver to the Originator on the settlement date and for a sum specified by the Receiver to be paid to the Originator, or is to correct a previously received erroneous credit entry.
3. Returns: Originators must insure that no entry is made as a reinitiation of an item previously returned by a Receiver's Bank (RDFI) except in the case of insufficient funds type of returns.
4. Originators receiving correction data (Notice of Change) must update the account information prior to the transmission of the next transaction following receipt of such NOC.
5. Revocations: Originators must warrant that no entry will be transmitted when the receiver has revoked the authorization for such an entry.
6. Notices of Variable Debits: If the amount of the debit changes, the Originator must notify the Receiver at least 10 days prior to the debit.
7. PPD (Prearranged Payment & Deposit Entry): This SEC Code is used for a credit or debit entry to effect a transfer to or from a consumers checking and savings accounts only.
Any transaction targeted at a receiver's account using the PPD code must have a written, signed authorization.
You Know The Rules And So Do I
In the past couple of decades a growing number of people have regularly used the airplane as their means of transportation when traveling internationally. When the preferred method of visiting overseas is one of the excellent jets available from most airline companies, it is important to understand that this increase in number of travelers makes it even more important to know some of the common rules and customs.
While most international travelers are quite comfortable with the requirements of moving by air from country to country, some get confused and disoriented even when they believe they are well prepared. But many travelers take far too little time to become familiar with guidelines and requirements set by airlines, airports and government agencies.
The first area of confusion might be the differences between domestic air travel and transatlantic air travel, for example. Many vacationers feel that, because they have flown in their own country many times they will be fine traveling to and within another country. While some domestic and international travel rules and customs are the same, there are significant differences.
The airport screening process for international travel is usually a bit more involved than for domestic travel, especially since 2001. This alone should be a sign to the traveler that more time should be allowed for getting to the airport, getting through the check-in and boarding process, and getting out of the airport. The importance of planning for enough time to connect with a following flight is just one item that should always be taken seriously.
Expect closer baggage inspection with international flights, for example. It does not matter that there are grandparents or young children in the group, the airport and Transportation Safety Administration will still inspect baggage and persons for illegal items.
In the early minutes of time at an airport, domestic and mingle, often using the same baggage check and passenger check-in facilities. Sometimes the two classes of passengers find themselves separated when the screening process begins, but in most airports this is not the case. Many of the larger hub airports screen all passengers and baggage with the same process and the separation into domestic and international flights comes only at the gate. Passengers will be asked to remove all jewelry, belts and other accessories that might set off the metal detector. This inspection process includes the shoes. Travelers should expect this and be prepared for it.
One of the common factors that hold up check-in and screening, with both domestic and international flights, is the lack of proper identification. Some travelers just do not seem to think ahead and when they are asked for picture identification, they have to dig through carry-on luggage or explain that they don't have it right at hand. Of course, these folks are usually asked to step aside, but the delay they created has already started. It is wise to have driver's license, passport and any other required identification accessible. Tip: Bring only what is required and leave other important documents at home. If there is doubt, ask!
These are just a few tips and guidelines that may smooth the way for international travel. Remember that there is never too much information when it comes to being prepared for traveling outside of the home country.
Both Pat Mcdavitt & Peter Mason are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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