How does banking transaction software interface with ACH networks?
Payments
Asked by Question Bot12/Feb/20131 answer
1 Answer
F
Faisal Khan
Answered 12/Feb/2013
Dont know how to present the software layer out to you, but most of what I have seen is ACH is defined as a delivery channel in their core-banking software. I have seen banks have a middle-tier connectivity between their core banking and the ACH processor they choose (FED/EPN). Some core banking software have native connect capability to ACH, others don't.
In most cases, ACH is defined in the Core Banking as a channel (core banking assigns "channels" for every form of debit/credit delivery mechanisms, eg. ATM, phone banking, Internet, SWIFT, etc.) ACH is considered no different.
Technically speaking, it is a middle-tier connectivity of the Core Banking software to the clearing house. Its just a lot of parsing of files and updating them (generating Response Files for Debit, Credit and Returns/Errors posting).
These files are updated and reference to the accounts that need the debit and/or credit in them.
In most cases, ACH is defined in the Core Banking as a channel (core banking assigns "channels" for every form of debit/credit delivery mechanisms, eg. ATM, phone banking, Internet, SWIFT, etc.) ACH is considered no different.
Technically speaking, it is a middle-tier connectivity of the Core Banking software to the clearing house. Its just a lot of parsing of files and updating them (generating Response Files for Debit, Credit and Returns/Errors posting).
These files are updated and reference to the accounts that need the debit and/or credit in them.