|
ACH processing has many variables. The ACH network is very different from the credit card network. Once a credit card is authorized in real-time, the only potential result going forward is a charge-back. With ACH, there is only limited real-time authorization, and everything else is subject to return by the receiving depository financial institution (RDFI).
Proper ACH processing requires knowledge of all the nuances and subtleties of every Bank, S&L and Credit Union in the US. There is no standard for how each bank facilitates ACH requests and many institutions do things differently. For instance, many banks do not use the same ABA for the ACH as is printed on a their consumer's checks. Many credit unions (and some other, smaller financial institutions (FI's) use a correspondent bank. And, some FI's do not participate in ACH at all.
Failure to deal with these factors results in a returned check - many times on entries that could have been successful. It is crucial to create and maintain a database of NOC's, bank account to ABA structure (MOD 8, 10, 12); bank account length and structure, non-participating bank discovery and conversion, and ABA substitution to create the best potential conversion ratio for ACH.
Your bank will not do this for you.
There are many banks that hold themselves out as ODFI's, however, the majority of them are "old school". Their systems were designed for PPD transactions and are not equipt to offer you solutions in a non face-to-face environment.
We have integrated into several merchants ODFI's so these merchants could enjoy the benefits of our gateway, front-end tools and other solutions while securing a direct ACH relationship with their existing bank.
It can be an expensive route to go considering the alternatives. Feel free to contact me and I will give you my opinion on what the best way to go is for your application.
|