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#1732835 - 08/20/12 05:43 PM Bill pay system via ACH - NSF
Elwood P. Dowd Offline
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Elwood P. Dowd
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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.)
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eBanking / Technology
#1732903 - 08/20/12 07:06 PM Re: Bill pay system via ACH - NSF Elwood P. Dowd
aac Offline
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Joined: Aug 2012
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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.

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#1732904 - 08/20/12 07:09 PM Re: Bill pay system via ACH - NSF Elwood P. Dowd
John Burnett Offline
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John Burnett
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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.
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#1733354 - 08/21/12 06:42 PM Re: Bill pay system via ACH - NSF aac
tdogz Offline
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tdogz
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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.

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#1733422 - 08/21/12 08:01 PM Re: Bill pay system via ACH - NSF tdogz
Elwood P. Dowd Offline
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Elwood P. Dowd
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Thank you. Anyone else?
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#1733423 - 08/21/12 08:04 PM Re: Bill pay system via ACH - NSF Elwood P. Dowd
BrianC Online
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BrianC
Joined: Nov 2004
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Illinois
Ditto John, less the "nastygram" reference.
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#1733470 - 08/21/12 09:32 PM Re: Bill pay system via ACH - NSF Elwood P. Dowd
Sallaia Offline
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Sallaia
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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).
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#1733518 - 08/22/12 09:36 AM Re: Bill pay system via ACH - NSF Sallaia
Elwood P. Dowd Offline
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Elwood P. Dowd
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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?
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In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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#1733678 - 08/22/12 03:24 PM Re: Bill pay system via ACH - NSF Elwood P. Dowd
Sallaia Offline
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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.
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#1733703 - 08/22/12 04:00 PM Re: Bill pay system via ACH - NSF Elwood P. Dowd
Still Developing Offline
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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.

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