Add a NACHA Processor

New Features: In our latest release, we've added new batching controls to NACHA processors. See the details in the Batching section below.

Introduction

This article explains how you can use the LoanPro interface to add a NACHA processor to your Secure Payments account. NACHA files are specially formatted .txt files, used by US-based banks and other financial institutions to communicate transactions. A NACHA file can instruct that funds be sent to you or sent from you.

How to Add a NACHA Processor

To add a new NACHA processor, navigate within LMS to Settings > Company > Merchant > Secure Payments and go to the BANK ACCOUNT/ACH (USA) tab. Click Add Processor.

Make sure you have “NACHA” selected from the “Processor Type” drop-down menu.

Now enter the following:

Field

Explanation

Processor Name

This is the name you are giving to this NACHA processor to distinguish it from other NACHA processors you might create.

Company Name

This is your company name in the way your bank has it on file. See your bank statement if you’re not sure.

Bank Name

This is the name of your bank.

Bank Routing/ Transit Number

This is the routing or transit number for your bank.

Company EIN / TAX ID

This is your company’s Employer Identification Number or Tax Identification Number.

Company Discretionary Data (not required)

This field allows your company to include codes significant only to you (e.g., a batch number for a specific NACHA file). There will be no standardized interpretation for the contents of this field.

Cutoff Time

This is the hour of the day and the 15 minute increment when the batch will run, in Coordinated Universal Time (UTC).

  • This is a drop-down that is in 24-hour time and you can choose any 15 minute increment. As stated above, cutoff time is in UTC, so you will need to know the conversion to your local time zone to get the correct hour (e.g. choosing 1 would be 1:00 AM UTC time, which is 7:00 PM in Mountain Daylight Time).
  • When the process runs, all transactions without a batch ID are added to the NACHA file. This is set to happen automatically once a day so that NACHA files can be created and submitted each day before the cutoff time for bank processing.
  • If you create a NACHA file manually at any point, it will include all transactions without a batch ID to ensure that transactions are only included in a single NACHA file.

Merge Similar Transaction

If two transactions are made on this NACHA processor with the same account number and routing number, they will merge into a single transaction. (Two $100 payments from the same account, for instance, would show up as a single $200 transaction.) The payments will still show up separately in LMS and Secure Payments, but are merged in your unbalanced NACHA file. This helps you save time processing the data.

Batching

To specify which days a batch can be created: select a cutoff time, time zone, batching days, and banking holidays (if applicable). This should be specific to the bank that processor your NACHA/CPA005 batches. The parameters are set in LMS which communicates with Secure Payments to create the batch.

Field

Explanation

Cutoff Time

This is the hour of the day and the 15 minute increment when the batch will run, in Coordinated Universal Time (UTC).

  • This is a drop-down that is in 24-hour time and you can choose any 15 minute increment. As stated above, cutoff time is in UTC, so you will need to know the conversion to your local time zone to get the correct hour (e.g. choosing 1 would be 1:00 AM UTC time, which is 7:00 PM in Mountain Daylight Time).
  • When the process runs, all transactions without a batch ID are added to the NACHA file. This is set to happen automatically once a day so that NACHA files can be created and submitted each day before the cutoff time for bank processing.
  • If you create a NACHA file manually at any point, it will include all transactions without a batch ID to ensure that transactions are only included in a single NACHA file.

Time Zone

This allows you to select a time zone for the cutoff time. Time Zones will be updated automatically to reflect daylight savings time shifts.

  • UTC
  • US/Eastern
  • US/Central
  • US/Mountain
  • US/Pacific
  • US/Alaska
  • US/Hawaii
  • Canada/Atlantic
  • Canada/Newfoundland

Batching Days

This feature allows you to pick what days the NACHA batch will generate. To select batching days, check the correlating box. This will tell Secure Payments when a batch can be created.

Exclude Banking Holidays

Checking this box will tell Secure Payments not to batch on banking holidays. The calendar icon allows you to customize dates to match your bank's holidays.

Please be aware that there is one exception to the batch cutoff time. If the cutoff time comes and there are no transactions that need to be batched, the batch will be put in an open pending status. The system will then check every 15 minutes for new transactions. Any transactions that occur after the cutoff time, but before the end of the day, will be batched when the system checks, resulting in a batch time later than the cutoff time for that day. The system will continue to check for transactions either until a batch is created or until the end of the day at 12:00 am.

Settings

Once you have finished entering the information needed for the processor, choose the settings you want for this processor. Settings include:

Setting

Description

Auto Reversal

Select “Yes” if you want payments that are returned to be automatically reversed in LoanPro.

Default Processor

Select “Yes” if you want this processor to be the default for new AutoPays.

Once you've finished entering in the correct information, click Save.


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