| Electronic Payment Terms |
| |
 |
| ABA
Routing Number |
| The
is a unique number, located at the bottom of a check preceding
the account number, which directs electronic ACH deposits
to the correct bank. |
|
| ACH
- Automated Clearing House |
| The
Automated Clearing House is a secure, private electronic
payment transfer system that connects all U.S. financial
institutions. This system connects banks to one another
by way of the Federal Reserve Board or other ACH operators. |
|
| ACH
Associations |
| ACH
Associations - provide rules and guidelines for the efficient
operation the ACH Network. NACHA, the National Automated
Clearing House forms the governing foundation for all
20 regional associations. |
|
| Affidavit |
| A
sworn statement by a consumer declaring that a particular
ACH transaction was authorized or the the authorization
for the transaction has been revoked. |
|
| Authentication |
|
| A
reliable process that determines the identity of a party. |
|
| Authorization |
| An
agreement by a receiver to allow for the posting of debit
or credit items to their account. |
|
| Availability |
| Number
of days required to collect items before the customer
has use of the funds. |
|
| Batch |
| The
accumulation of captured sale transactions waiting to
be settled. Multiple batches may be settled throughout
the day. |
|
| Batch
Processing |
| A
type of data processing and data communications transmission
in which related transaction are grouped together and
transmitted for processing. |
|
| Capture |
|
| Converting
the authorization amount into a billable transaction record
within a batch. Transactions cannot be captured unless
previously authorized and the goods or services have been
shipped or transmitted to the consumer. |
|
| Check
Conversion |
| Using
payment information from a check tendered for payment
to initiate an electronic debit to the check writer's
account. |
|
| Check
Truncation |
| Stopping
or truncating a paper check by turning it into an electronic
item at the Point of Sale or in lockbox check truncation. |
|
| Data
Encryption |
| The
scrambling of sensitive information, such as account numbers
or access codes, to prevent unauthorized use. |
|
| Debit |
| An
entry to the record of an account to represent the transfer
or removal of funds from the account. |
|
| Direct
Deposit |
|
| The
disbursement of funds to consumer accounts including payroll,
interest, expense payments, dividends, etc. |
|
| Direct
Payment |
| The
collection of funds from consumer of business accounts,
normally used to collect payments for monthly dues. |
|
| ECA
(Electronic Check Acceptance) |
| A
system, which captures banking information off a paper
check and converts it into an electronic item, processed
through the Automated Clearing House network. Checks are
processed similarly to credit cards, and the paper check
is returned to the consumer at the point of sale. |
|
| EFT
(Electronic Funds Transfer) |
| A
transfer of funds between accounts by electronic means
rather than conventional paper-based payment methods.
Any financial transaction originating from a telephone
or electronic terminal, or from a computer or magnetic
tape. |
|
| Electronic
Check |
| The
electronic equivalent of a paper check. A payment transaction
which originally started out as a paper check, but which
has been completely converted to and ACH transaction at
the point of purchase or in the case of a re-deposited
paper check, reinsertion into the financial system. |
|
| EDI
(Electronic Data Interchange) |
|
| The
electronic communication of business transactions; specifically
the exchange of trade-related documents, such as purchase
orders, invoices and corporate Electronic Funds Transfer
in a standard format. |
|
| Federal
Reserve Bank |
| The
bank of the United States of America. Loans and provides
money to banking institutions and establishes interest
borrowing rates. |
|
| Funds
Availability |
| The
time at which the funds from an electronic funds transfer
are made available to the customer. |
|
| Lockbox |
| A
financial institution which facilitates rapid collection
and posting of corporate receivables. Typically, customer
payments are mailed to the bank's lockbox for collection,
sorting, totaling and recording by the bank rather than
by the company that issued the bill. |
|
| MICR
(Magnetic Ink Character Recognition) Line |
| The
preprinted bottom line of paper checks contain the routing
transit number of the financial institution the check
is drawn on, the account number of the drawee and the
check number printed in machine readable magnetic ink. |
|
| NACHA
(National Automated Clearing House Association) |
|
| The
national association that establishes the standards, rules
and procedures that enable depository financial institutions
to exchange ACH payments on a national basis. |
|
| NACHA
Format |
| The
ACH record format specifications described in the NACHA
operating rules and guidelines, which are the accepted
and warranted payment format standards for payments delivered
through the ACH Network. |
|
| Non-Recurring
Payment Authorization |
| An
individual or company authorizes the debit of their account
for a varying period and/or amount. |
|
| NSF
Check |
| A
paper check that has been returned by the banking system
due to Non Sufficient Funds. These can be electronically
represented through the ACH Network using Electronic Check
Re presentment. |
|
| ODFI
(Originating Depository Financial Institution) |
| ODFI
is the Originating Depository Financial Institution, the
bank that initiates an Electronic funds transfer through
the ACH network on behalf of the Originator. |
|
| One
Time Payment Authorization |
|
| An
individual or company authorizes a one-time debit of their
account. The authorization is usually a written authorization
but in some instances a recorded telephonic authorization
may be used. |
|
| Original
Entry |
| A
debit or credit ACH transaction directed to an account
at an RDFI |
|
| Origination |
| The
process of creating ACH entries for submission through
and ODFI to the ACH operator |
|
| Originator |
| A
financial institution that initiates a wire transfer or
automated clearing house (ACH) payment. |
|
| Payment |
| A
vehicle to affect the transfer of value. Typically, a
transfer of funds from one bank depository to another,
but may also transfer funds to or from a debt instrument,
such as a credit card. |
|
| Xpress Payment
Gateway / Internet Gateway |
|
| The
Payment Gateway allows merchants the ability to establish
secure automated communications between an Internet aware
software application and our check processing system.
This gives the merchant the ability to verify and authorize
checks, submit transactions for batch processing and track
transactions. |
|
| RDFI
(Receiving Depository Financial Institution) |
| A
financial institution, which receives ACH entries directly
or indirectly from its ACH operator. |
|
| Regulation
E |
| The
regulation published by the federal reserve bank to implement
the electronic fund transfer act mandating consumer rights
and obligation with regard to electronic funds transfers. |
|
| Return
Item |
| Any
item which cannot be processed and is being returned by
the RDFI to the ODFI for correction or re-initiation. |
|
| Routing/Transit
Number |
| Also
known as routing number, transit/routing number and ABA
number. A nine digit number (eight digits plus a check
digit) which identifies a specific financial institution.
Routing numbers are administered by the routing number
administrative board under the sponsorship of the American
Bankers Association and officially maintained and published
by Thonmson Financial Publishing. |
|
| SEC
(Standard Entry Class) codes |
|
| The
three character code within an ACH company/batch header
which identifies the type of transactions within that
batch (e.g. CDD, CTX, PPS, etc.) |
|
| TEL
- Telephone Initiated Entry |
| A
service that permits a customer to pay bills electronically.
The customer gives a corporation the authority to debit
his or her account for a specific amount within a specified
range of amounts. |
|
| Telephone
Bill Payment |
| A
service that permits a customer to pay bills electronically.
The customer gives a corporation the authority to debit
his or her account for a specific amount within a specified
range of amounts. |
|
| Telemarketing
Sales Rule |
The
Federal Trade Commission (FTC) issued the amended Telemarketing
Sales Rule (TSR) on January 29, 2003. Like the original
TSR issued in 1995, the amended Rule gives effect to the
Telemarketing and Consumer Fraud and Abuse Prevention
Act. This legislation gives the FTC and state attorneys
general law enforcement tools to combat telemarketing
fraud, give consumers added privacy protections and defenses
against unscrupulous telemarketers, and help consumers
tell the difference between fraudulent and legitimate
telemarketing.
One significant amendment to the TSR prohibits calling
consumers who have put their phone numbers on the National
Do Not Call Registry. Another change covers the solicitation
of charitable contributions by for-profit telemarketers.
Other key provisions
|
require disclosures of specific information |
|
prohibit misrepresentations |
|
limit when telemarketers may call consumers |
|
require transmission of Caller ID information |
|
prohibit abandoned outbound calls, subject to
a safe harbor |
|
prohibit unauthorized billing |
|
set payment restrictions for the sale of certain
goods and services |
|
require that specific business records be kept
for two years |
More
information on the Telemarketing Sales Rule
|
|
| Third
Party Processor |
| A
party which processes ACH files and/or items on behalf
of one of the participants in the ACH system. |
|
| Unauthorized |
|
| An
ACH item is "unauthorized" if it was never originally
authorized, if it clears for more than was originally
authorized, or if it settles earlier than was previously
authorized. |
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