Provides an overview of the ACH Processing section within the Prospect Form
In this video, we cover:
- Monthly and Daily Processing Volume
- Max Single ACH Transaction Amount
- ACH Credits
Video Transcript:
Hello, this is Abigail and today I am going to be discussing common questions on the ACH Processing portion of the iCG Pre-Application.
A common question we receive is how a merchant should complete this section if they have not processed using ACH before. If it will be their first-time processing with ACH, our recommendation is for the merchant to review past transactions and try to give the most accurate picture with their estimates of their projected volumes. As they will need to be approved by our processing bank, it is better to lean more towards the conservative side with these estimates.
For the projected ACH monthly transactions, we typically recommend the estimated amount to fall around 20% of their average monthly Credit Card transactions.
For the Projected Max ACH Daily Volume, it can be the merchant’s best estimate. Please ensure the daily volume does not exceed the merchant’s estimated monthly amount.
Both the projected monthly and daily amounts are considered soft caps. This means that they can be adjusted once the merchant begins to build ACH processing history. If the monthly or daily amounts are over the number provided on the application, the transactions will not be declined, meaning they will still be processed as usual. The estimates provided are intended to help us monitor their account. For instance, if there was a day where it was significantly over the expected amount, it would then trigger a review process to ensure that transactions are processing as expected.
That being said, the Max Single ACH Transaction Amount is not a soft cap. Any transaction amount higher than the number provided will decline. For this field, using past transactions to determine the amount needed is key. This amount will then need to be reviewed by our Risk department once the application has been submitted. To increase the likelihood of that amount being approved, we recommend the merchant have at least two times the amount requested to be in their settlement account.
If the merchant plans to issue credits to their customers or vendors, they can check the ACH Credit box. This will enable the merchant to send an ACH credit to a customer’s bank account. The merchant will then input their best estimates into these fields, regarding the number of ACH Credits they intend to push out each month and the projected monthly amount.
The ACH Descriptor is what will be shown next to the charge on the customer’s bank statement. Please note that there is a 16-character limit.
The SEC codes portion allows the merchant to select which ways they will be receiving authorization from their customers for ACH transactions. If you would like more information on what the SEC codes mean, please see our article “ACH Authorization General Overview” located at help.icheckgateway.com.
This marks the end of our video on common questions related to the ACH Processing section of the Prospect Form for the iCG Pre-Application. In our next video, I will be discussing what you will see within the Partner Zone and how to enter pricing information.