Thread Options
#1732835 - 08/20/12 05:43 PM Bill pay system via ACH - NSF
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
If your bank has a bill payment system that issues ACH credits, not checks, what happens if the customer authorizes a payment in excess of the account balance?

(My interest is in how it works operationally, not compliance issues.)
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
eBanking / Technology
#1732903 - 08/20/12 07:06 PM Re: Bill pay system via ACH - NSF [Re: Elwood P. Dowd]
aac Offline
New Poster
Joined: Aug 2012
Posts: 2
Sunny Texas
Bill pay verifies the balance in the account first. If the funds aren't there, the ACH payment will not process. Our system will automatically try again for the next three processing runs to verify funds and process the payment.

Return to Top
#1732904 - 08/20/12 07:09 PM Re: Bill pay system via ACH - NSF [Re: Elwood P. Dowd]
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 38,791
Cape Cod
My bank (the one housing my account, not the one where I worked 8 years ago) would not process the payment and send me an email telling me there's a nastygram (my term not theirs) waiting for me on the online banking portal. Their secure notice would provide the details and inform me how many more times the payment would be attempted. The last time I looked at the terms of service, there was no fee attached to the non-transaction.
Last edited by John Burnett; 08/20/12 07:10 PM.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#1733354 - 08/21/12 06:42 PM Re: Bill pay system via ACH - NSF [Re: aac]
tdogz Offline
100 Club
tdogz
Joined: May 2012
Posts: 229
Originally Posted By: aac
Bill pay verifies the balance in the account first. If the funds aren't there, the ACH payment will not process. Our system will automatically try again for the next three processing runs to verify funds and process the payment.

^^^This is what our system does too.

Return to Top
#1733422 - 08/21/12 08:01 PM Re: Bill pay system via ACH - NSF [Re: tdogz]
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Thank you. Anyone else?
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#1733423 - 08/21/12 08:04 PM Re: Bill pay system via ACH - NSF [Re: Elwood P. Dowd]
Happy Birthday BrianC Online
Power Poster
BrianC
Joined: Nov 2004
Posts: 5,687
Illinois
Ditto John, less the "nastygram" reference.
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
www.tcaregs.com

Return to Top
#1733470 - 08/21/12 09:32 PM Re: Bill pay system via ACH - NSF [Re: Elwood P. Dowd]
Sallaia Offline
Junior Member
Sallaia
Joined: Jul 2011
Posts: 42
Tennessee
Unfortunately, our current bill pay system does not communicate directly with our core system. All payments (check and ACH) are debited from the account at the end of the day and if it overdraws an account, the branch has the availability to pay or return it the next business day before it is processed (sent out to the payee).
_________________________
Any opinions expressed are my own and do not necessarily reflect those of my employer.

Return to Top
#1733518 - 08/22/12 09:36 AM Re: Bill pay system via ACH - NSF [Re: Sallaia]
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Sallaia,

I was told that some systems do not verify funds availability before issuing the credit, but yours at least offers you the ability to arrest the transaction. Who is your vendor?
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#1733678 - 08/22/12 03:24 PM Re: Bill pay system via ACH - NSF [Re: Elwood P. Dowd]
Sallaia Offline
Junior Member
Sallaia
Joined: Jul 2011
Posts: 42
Tennessee
(Someone censor me if I cannot talk about a vendor here.)

We utilize iPay. We pull in a file before EoD and they don't actually issue the credits until lunchtime the next business day. This also gives time for OFAC, fraud monitoring, etc, with the option to cancel the payment by that cut-off time.
_________________________
Any opinions expressed are my own and do not necessarily reflect those of my employer.

Return to Top
#1733703 - 08/22/12 04:00 PM Re: Bill pay system via ACH - NSF [Re: Elwood P. Dowd]
Still Developing Offline
100 Club
Joined: Mar 2002
Posts: 199
It all depends on what the bank set up with the bill pay vendor. IPay has the option Sallaia mentions as does Online Resources. I am sure there are others. You can have the payments prepaid by the customer as Sallaia's bank or you can have them paid afterward. The prepaid allows you to stop any payment going out that would be NSF so it basically guarantees funds to the payee. The paid afterward always has a chance of being NSF and being returned.

Return to Top

Moderated by:  Andy_Z