Frequently Asked Questions about VCI and the ACH Process

1. What is Automated Clearing House (ACH)?

An electronic payment delivery system that processes credit and debit transfer for institutions nationwide. The National Automated Clearing House Association (NACHA) regulates the ACH network.

2. What are some of the advantages of ACH?

Processing with ACH is fast, flexible and secure. ACH payments are a popular and efficient alternative to
credit card or a paper check. Advantages include:

1. Reduction in payment processing expense.
   • Paper Checks cost $3 – $5 per check to send, and time is spent to receive, process and deposit
   • Credit Cards cost 1.5% – 3% of the purchase cost per transaction
   • ACH cost less than both credit card and paper check processing
2. Improve billing efficiency and customer convenience.
   • Eliminates the time and effort required to write and deposit checks
   • liminates the possibility of lost, stolen, or late checks
   • Save time and resources with recurring billing and invoicing
3. Capture more initiated sales by enabling customers that do not have a credit card to use their checking or savings account information to deduct funds for the payment of goods or services.
4. Robust Report Options.
   • Access Pre-Made Check Reports, Pre-Made Customer Reports and create Customer Reports.

3. What is the ACH Transaction process?

ACH Payments are processed using a customer’s bank account information to deduct funds directly from a
checking or savings account to pay for goods or services.

1. ACH Payments are processed using a customer’s bank account information to deduct funds directly from a checking or savings account to pay for goods or services.
2. Enter the customer’s bank account information and transaction details into the “Gateway” (The Gateway sends transaction details for electronic processing).
   • If initiated before 6 pm ET, the transaction will be submitted for processing that same day.
   • If it is initiated after 6 pm ET, it will be submitted for processing the next business day.
   • All transactions submitted in a day, prior to 6 pm ET, will batch out automatically at 6 pm.
3. Once submitted, transactions take a minimum of three (3) business days to process.
   • For example, A transaction that is submitted on Monday, before 6 pm ET, will be processed through
     Thursday.
4. The settlement of funds will take place after 6 pm ET on the third day.
   • All funds due will be electronically credited to the allotted business bank account.

4. What type of ACH transactions does VeriCheck process?

Whether processing at the point of sale, through a website, via fax, email or even over the phone,
VeriCheck helps businesses safely accept payments and manage transactions.

• WEB – Website-originated debit initiated by the customer
• PPD – Personal account debit entered through the online virtual terminal
• CCD – Business account debit entered through the online virtual terminal
• TEL – Telephone-originated payment (information provided by the customer over the phone)
• POP – Point of purchase (e.g., a cash register)
• BOC – Back office conversion (paper checks converted into electronic transfers)
• ARC – Accounts Receivable Checks converted into ACH transactions