First Kentucky Business Cash Management User Guide

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Glossary

ACH: Automated Clearing House. The network which automated electronic financial transactions are routed and settled in the United States. ACH Credit: Allows a business to make direct deposits into other people’s accounts, as long as they have authorization from the account Owners. (i.e Payroll, Vendor Payment) ACH Debit: Allows a business to make direct withdrawals from other people’s accounts, as long as they have authorization from the account Owners. (i.e. Dues, Tithes, Rent, Utility Payment) ACH Origination: Allows users to make direct deposits into or make direct withdrawals from other people’s accounts if they have permission from the account Owners. Authorization: A key component of an ACH transaction, as it gives the Originator the authority to send a credit or debit transactions to the Receiver’s account. Batch: A group of records or documents considered as a single unit for the purpose of data processing. Company ID: A 10-digit unique identifier used for identifying entities, called originators, within the ACH network. Effective Date: The date on which the Originator requests ACH transactions be posted to the Originator’s and Receiver’s accounts. The ACH Operator overrides this date if the Effective Date is not a banking day. EFTPS: Electronic Federal Tax Payment System. It allows a business to pay its taxes by direct deposit to EFTPS. This service is especially useful for businesses that need to pay taxes monthly or quarterly. IP Address: A unique numerical address, such as ‘123.45.1.234’, that identifies a computer connection to the Internet. The IP address is assigned by the Internet Service Provider (ISP) providing the internet connection. IP addresses can be dynamic (subject to change without notice) or static (permanent). NACHA: National Automated Clearing House Association which establishes the rules, industry standards and procedures governing the exchange of commercial ACH payments by depository financial institutions. Notification of Change (NOC): A non-dollar entry sent to the ODFI by the RDFI that contains information for the correction of inaccurate information contained within an ACH entry. Originator: The company/business that has been authorized by the Receiver to either credit or debit Receiver’s account.

Glossary