Similarly, the Originator is the party that originates an ACH transaction, and the Receiver is the party that receives the transaction. An ODFI is a financial institution in which the ACH transaction starts or originates from (e.g., ACHQ’s bank), while an RDFI is an institution that receives the ACH transaction (e.g., your customer’s bank). Next, there are ODFIs (Originating Depository Financial Institutions) and RDFIs (Receiving Depository Financial Institutions). First off, NACHA is the regulatory body governing the ACH network. For example, if your customer calls to place an order over the phone, and you process it as a PPD transaction instead of a TEL transaction, your customer can claim that the transaction was not authorized and have it reversed.īefore we dive into the details of SEC codes, let’s quickly review the key players involved in ACH. You must fulfill the authorization requirements for the ACH Type submitted, or your customer can have the charge reversed. CCD: Used for a one‐time or recurring business to business ACH transaction, for which you have written (mail, email or fax) or telephone authorization or having a general written agreement/contract with the company for ACH debits to its account.WEB: Used for a one‐time or recurring business to consumer, or business to business, ACH transaction that was authorized by submitting a form over the internet.TEL: Used for a one‐time or recurring business to consumer, or business to business, ACH transaction that was authorized over the phone.PPD: Used for a one‐time or recurring business to consumer ACH transaction, for which you have written authorization.ACHQ supports the following ACH Types (though your account many not be enabled for all of them): The key word is Authorized-which according to NACHA means something very specific depending on the ACH Type used to submit the transaction. ![]() (Note that this is significantly different from credit card transactions where a customer can have a charge reversed simply by claiming that the product or service received was not what they expected.) And, disputing an ACH charge requires that the account holder provide notice to the bank in writing (or the electronic equivalent) that one of those three conditions exists. However, you are permitted to have customers authorize payments for variable amounts, and/or not to exceed amounts. NOTE: The transaction must be for the exact amount authorized-it cannot be higher or lower. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |