Any individual, corporation or other entity that initiates entries
into the Automated Clearing House Network
Depository Financial Institution (ODFI)
A participating financial institution that originates ACH entries
at the request of and by (ODFI) agreement with it's customers.
ODFI's must abide by the provisions of the NACHA Operating
Rules and Guidelines.
Depository Financial Institution (RDFI)
Any financial institution qualified to receive ACH entries that
agrees to abide by the NACHA Operating Rules and Guidelines.
An individual, corporation or other entity who has authorized
an Originator to initiate a credit or debit entry to a transaction
account held at an RDFI.
is involved in the application and setup process?
merchant that would like to use our ACH service we require that
you complete a formal processing agreement. The first step is
to complete our online application worksheet on this website.
What we will do is transfer this information to the original application
and then email or fax it to you for your signature. Once you fax
the application back to us along with a blank voided business
check your application will be submitted to our underwriters.
This approval process normally takes one or two business days.
Within 24 hours you will receive your Sage Virtual Terminal log-in
user name and temporary password as well as your Real-Time Reporting
log-in user name and temporary password. You can then immediately
begin submitting your ACH transactions. In addition, if you have
signed up for our optional but recommended Virtual Terminal tele-training
we will arrange this for you.
you approve every business that applies?
will normally approve the vast majority of what we consider to
be low risk businesses with good credit. If you think that you
are a high risk business then chances are you probably are not
a candidate for ACH Secure. However, feel free to email us with
your individual situation.
are the Terms and Conditions?
here to read and print the Terms and Conditions.
must I complete an application when other ACH companies have an
online 15 minute instant approval?
The ACH system
has very strict rules when it comes to who has access to their
system. Otherwise the system would be subject to great compromise.
So to think that one could simply fill out an online form and
begin to transfer funds between checking accounts in our opinion
is just silly. Even though you may get an online approval doesn’t
mean that your funds would in fact be transferred to your account
in a timely manner. Instead funds being delayed while the real
approval occurs is just a recipe for problems with your funds.
long does it take to receive my funds?
timeframe to receive the funds in your checking account from the
time that you submit an ACH file is 2 business days.
I perform both single payment and recurring ACH payments?
In fact the ACH Secure program includes both single and recurring
payments within the same module. Where other ACH processors charge
an additional monthly fee for recurring payments we include this
feature in our standard monthly pricing.
authorizations are required in order to perform ACH transactions?
processed through the Automated Clearing House are strictly controlled
by Government Regulations and monitored by the Federal Reserve.
There are two major methods of entering data:
Initiated Method (Where you the merchant keys in the data)
2. Merchant enters data
3. On-screen transaction confirmation
4. Federal Reserve directs the debit and credit process
5. Money moves from consumer account to merchant account
Reserve Rules Governing Merchant Initiated Transactions
must have written authorization from the customer to debit
the customer’s bank account, or
has given the merchant oral authorization to debit his/her
checking account and has either initiated the telephone call
or has an existing relationship with the merchant.
Initiated Merchant (Used by Internet merchants)
1. Consumer enters
data via website
2. Transaction confirmation emailed
3. Federal Reserve directs the debit and credit process
4. Money moves from the consumer account to the merchant account
Federal Reserve Rules
Governing Consumer Initiated Transactions
- Consumers can
only initiate check payments from their own personal or business
checking accounts – no third party initiators!
- Consumer identity
must be authenticated (standard feature with ACH Secure)
- Since 2002, any
Internet merchant not properly authenticating consumers for
non-recurring Web transactions will be liable in class action
lawsuits under Federal Regulation E. Sage Electronic Check
Services outperforms other virtual check programs by authenticating
consumers through unique information (such as a social security
number, date of birth, or driver’s license number) and
verifying the information provided against Equifax, the leading
national information service and an authority on consumer
you have a sample ACH Authorization form that I can provide to
here for a sample authorization form.
I do a batch upload of my ACH transactions?
Yes, in fact this is
another standard feature of your ACH Secure program at no additional
monthly cost. The batch upload option allows you to create a batch
file from your database and then upload it directly in the Virtual
Terminal so that all of the transactions in the file can be processed.
Files are processed hourly and you will receive an email with
a results file that would be detail which transactions were approved
and declined. Batches can be imported through a variety of normal
this program available for international merchants or customers?
No. At the current
time your company must be physically located within the United
States and your customers must have a checking account issued
by a U.S. bank that is part of the Federal Reserve system.
have a question about your program but can’t find the answer
on my website.
us and we will answer your question as quickly as possible.