If an ACH network offers multiple settlement cycles per day, are participants required to submit files for each cycle?
Payments
Asked by Question Bot05/Sep/20141 answer
1 Answer
F
Faisal Khan
Answered 05/Sep/2014
It would depend. Most likely not. Your originating transaction would be part of some cycle. Your main goal would be to capture this settlement cycle at its earliest published opportunity to inform your clients of the debit/credit of their account.
If your ACH processor is offering multiple settlement cycles per day, you may not be applicable to all those cycles, or if you do choose to participate, you have to look at the possibility that information may be redundant.
The above is a detailed explanation of the time-motion associated with an ACH transaction. Your file submission is done once. Your processor will process it for errors and let you know of it (if any) on the same day.
Day 2 is the Debit of the person from whom you are extracting payment, file may or may not be updated for you.
Day 3 is settlements, and very early Day 4 is the chargebacks/etc.
If your ACH processor is offering multiple settlement cycles per day, you may not be applicable to all those cycles, or if you do choose to participate, you have to look at the possibility that information may be redundant.
The above is a detailed explanation of the time-motion associated with an ACH transaction. Your file submission is done once. Your processor will process it for errors and let you know of it (if any) on the same day.
Day 2 is the Debit of the person from whom you are extracting payment, file may or may not be updated for you.
Day 3 is settlements, and very early Day 4 is the chargebacks/etc.