ACH Services

The most common culprit for ACH failure is incorrect or outdated banking information. Getting this right is your first line of defense.

• Verify Account and Routing Numbers: Always double-check these critical details. Even a single digit error can lead to a return.
• Confirm Account Type: Make sure you have the correct account type (checking vs. savings) as specified by the account holder.
• Use Correct SEC Code for Account Type: Use either corporate accounts (CCD) vs personal accounts (PPD).
• Maintain Updated Information: Regularly prompt customers or vendors to confirm their banking details, especially after bank mergers, account closures, or other changes. Implement a secure, easy process for them to update their information.
• Utilize Dual Control: Implement dual control, which requires two separate individuals to complete critical tasks in a transaction – one to initiate and another to approve transactions or adding a new payee.

Valid authorization isn't just a best practice, it's a fundamental Nacha operating rule. Without it, your ACH transfer is vulnerable to unauthorized returns and potential penalties.

• Written or Electronic Authorization: Always secure clear, verifiable authorization from the account holder. This can be a signed physical form, an electronic agreement (e.g., website checkbox, recorded phone call) or a pre-authorized debit agreement.
• Clear Disclosure: The authorization should explicitly outline the terms of the payment:
  • Amount (fixed or variable)
  • Frequency (one-time, recurring monthly, etc.)
  • Date(s) of payment
  • How to revoke authorization
• Retain Authorization Records: Keep authorization records for a minimum of two years after the last payment, or as long as required by Nacha rules or legal requirements.

Timing is everything in ACH processing. Knowing the network's rhythms helps you avoid delays and missed deadlines.

• Processing Cut-off Times: Be aware of your ACH processor's daily cut-off times. Submitting files after the cut-off means they'll be processed on the next business day.
• Settlement Dates: ACH transactions typically settle within 1-2 business days. Factor this into your payment scheduling, especially for time-sensitive payments.
• Holiday Impact: Remember, ACH processing does not occur on weekends or federal holidays. Adjust your payment schedules accordingly to prevent surprises.

Errors can happen even with the best practices. How you manage them directly impacts your efficiency and costs.

• Monitor ACH Returns (RDFIs): Regularly review ACH return codes. Each code offers valuable insight into why a payment failed.
• Automate Reconciliation: Implement systems that automatically match incoming ACH credits and outgoing debits with your internal records. This helps you quickly spot and address discrepancies.
• Address Returns Promptly: For any returns, contact the customer/vendor immediately to resolve the underlying issue and get corrected information. Do not re-initiate payments blindly; this can lead to higher return rates and potential fees.
• Retry Strategies: If appropriate, you may attempt to re-present a returned entry, but always adhere to Nacha rules regarding re-initiation limits.

These are invaluable assets for enhancing your ACH success rate.

• Robust ACH Payment Gateway/Processor: Choose a provider with a strong track record, secure systems, and excellent customer support. Look for features like:
  • Pre-authorization tools
  • Real-time bank verification
  • Detailed reporting on transaction status and returns
  • Full compliance with Nacha rules
• API Integrations: Integrate your accounting or ERP systems with your ACH processor to automate payment initiation, reconciliation, and reporting.
• Security Measures: Ensure both your systems and your partners employ strong encryption, tokenization, and other security protocols to protect sensitive banking data.

Nacha sets the rules for the entire ACH Network. Staying updated is key to avoiding non-compliance issues. 

At Ameris Bank, we're committed to keeping you informed about critical developments that impact your business's financial operations. Effective March 20, 2026, Nacha is implementing significant rule changes designed to further enhance the clarity, consistency, and security of ACH transactions. These updates are part of a broader industry initiative to strengthen fraud prevention and improve the efficiency of fund recovery across the ACH network. 

A key component of the new Nacha rules is the introduction of two standardized entry descriptions. These will provide clearer, more consistent information about the nature of ACH transactions, benefiting both your business and Receiving Depository Financial Institutions (RDFIs). 

Several changes were made from the original proposal that was issued in a Request for Comment in May 2023:

• Replaces “detection system” with “processes and procedures.”
• Provides a next level description of requirements – i.e., “reasonably intended to identify…”
• Requires a review of processes and procedures “at least annually.”

New payroll descriptions will be used for PPD (Prearranged Payment and Deposit) credits related to the payment of wages, salaries, and similar employee compensation. 

How this helps you: While simplifying classification, this also helps RDFIs better identify and monitor payroll payments, reducing the risk of fraud associated with payroll redirections and supporting proper funds availability.

The standard purchase description is designated for e-commerce purchases. The Company Entry Description field in the ACH transaction will now explicitly require the word "PURCHASE." 

How this helps you: This requirement applies to debit entries authorized by consumers for online purchases, including recurring ones. This helps all parties in the ACH network, including Ameris Bank, more effectively identify and manage the growing risks associated with e-commerce transactions, contributing to a more secure payment environment for your customers.