ACH is an Automated Clearing House network. A file to transfer funds is created in a standard ACH format (National Clearing House Association - NACHA format) and electronically sent through the Federal Reserve to either credit or debit a business or an individual account. The most common Standard Entry Class Codes (SECC) used in file creation are CCD (cash concentration or disbursement for business-to-business applications) and PPD (pre-arranged payment or deposit for consumer applications). ACH entries are created at least one day or two days in advance of the date you want the funds to settle in the account, otherwise known as the effective entry date. Both debits and credits settle on the effective entry date.
Examples of consumer ACH credits are direct deposit of payroll, expense reimbursements, and dividends. Examples of consumer ACH debits are membership dues, contributions, and rents. Businesses use cash concentration or cash disbursement to electronically transfer funds between companies.
Bremer eACH is a comprehensive, web-based, program that gives you the flexibility of processing your ACH batches by three different methods:
- Database Creation: In Bremer eACH, a database is created for specific applications, such as direct deposit. An example of information included in the database detail for direct deposit would be employee name, bank routing number, and account number. From the database detail information, you create your batch.
- Import Formats: Import Formats are used to import data into Bremer eACH from your accounting package or spreadsheet program, either in a fixed or comma-delimited text format. This information would import directly into the database detail to create your batch.
- Validator: Validator is used to import NACHA files and directly create batches in Bremer eACH. Validator verifies that the NACHA file generated by your accounting package is in the correct NACHA format and that set file limits have not been exceeded.