Direct Debit User s Guide

Size: px

Start display at page:

Download "Direct Debit User s Guide"

Lester Morrison
6 years ago
Views:

1 Direct Debit User s Guide May 2004 Version 1.0

2 This manual and accompanying electronic media are proprietary products of Optimal Payments Corp. They are to be used only by licensed users of the product Optimal Payments Corp. All rights reserved. The information within this document is subject to change without notice. The software described in this document is provided under a license agreement, and may be used or copied only in accordance with this agreement. No part of this manual may be reproduced or transferred in any form or by any means without the express written consent of Optimal Payments Corp. All names, trademarks, and registered trademarks are the property of their respective owners. Optimal Payments Corp. makes no warranty, either express or implied, with respect to this product, its merchantability or fitness for a particular purpose, other than as expressly provided in the license agreement of this product. For further information, please contact Optimal Payments Corp. Contact Information Optimal Payments Corporation 1800 West Loop South, #770 Houston, TX directdebit@optimalpayments.com Customer Service Technical Support , extension 1

3 Contents 1 Processing Direct Debits Overview Logging in Transaction Processing Overview Verifying a customer Charging a customer Refunding a customer Transaction processing parameters Reviewing transactions Viewing transaction details Batch Processing Overview Batch processing If a batch upload fails File format Reviewing transactions Reports Overview Direct Debit User s Guide 1.0 III

4 01/05/04 Running reports by transaction Running a report on All Transactions Viewing transaction details Running reports by deposit Running a report on All Deposits Viewing deposit details Deposit transaction details Performing a Void or Hold Transaction statuses Access Control Overview Changing a PIN Adding a PIN Modifying a PIN Disabling a PIN A Codes ACH return codes A-1 Dishonors & Dishonored Returns A-2 Dishonoring return entries A-3 Contesting dishonored return entries A-3 ACH transaction problem codes A-4 Province/state codes A-4 B Returned Items Settlement Activities by Presentment & Return Number B-1 System actions by return code B-2 Re-presentable items B-2 Sent To Research items B-3 Disposed items B-4 IV

5 01/05/04 Chargebacks, Authorization Problems, Legal Remedies B-5 Un-Authorized (R07) and Authorization Revoked (R10) B-5 Chargebacks/returns due to not being authorized B-5 Returned Item Recourse available to the Merchant B-6 NACHA Rules B-6 Returns for Revocation of Authorization (R07) B-6 Returns for Unauthorized Consumer Debits (R10): B-7 Direct Debit User s Guide 1.0 V

6 VI 01/05/04

7 CHAPTER 1 Processing Direct Debits Overview Direct debits offer a fast, safe, and easy way for consumers to pay for goods and services. It is an alternative payment method that you can offer in addition to credit cards. Accepting direct debits also helps you avoid losing sales to buyer s remorse. You do not have to make any additional investment in terminals or additional space, and require only minimal training. Optimal Payments direct debit processing application also supports merchants 24/7, guaranteeing a smooth integration and timely assistance. Optimal Payments direct debit processing offers the following functionality: Transaction processing allows you to perform such tasks as manually charging a customer s bank account. See Chapter 2: Transaction Processing for more information. Batch processing allows you to submit batch files of charges and/or refunds to process all at once. See Chapter 3: Batch Processing for more information. Reports allow you to view activity in your account, for example to see all transactions made in your account over a specified date range. See Chapter 4: Reports for more information. Access control allows you to perform such tasks as changing PINs or modifying access rights associated with a PIN. See Chapter 5: Access Control for more information. Logging in 1. Open an Internet browser and navigate to the following The login page opens. Direct Debit User s Guide

8 Processing Direct Debits 01/05/04 2. Enter your Merchant ID and PIN in the appropriate fields. 3. Click Submit. The Main Menu page opens. 4. Click on the link for the task you want to perform transaction processing, batch processing, reports, or access control. 1-2

9 CHAPTER 2 Transaction Processing Overview On the Main Menu page, click Transaction Processing. The Transaction Processing page opens. You can perform the following tasks from the Transaction Processing page: Verify Customer allows you to confirm that a customer s bank account is in good standing, but without actually transferring any money out of that account. Charge Customer allows you to transfer money from the customer s bank account and into your own merchant account. Refund Customer allows you to transfer money from your merchant account back to a customer s bank account, if a credit or refund is required. Review Transactions allows you to view details about transaction processing within your account. Verifying a customer 1. Open the Transaction Processing page. 2. Click Verify Customer. The Verify Customer page opens. Direct Debit User s Guide

10 Transaction Processing 01/05/04 This tells you that this is the Verify Customer page. 3. Complete the fields. See Transaction processing parameters on page 2-5 for a description of each field. 4. Click Submit. The following page opens for a successful customer verification: 2-2

01/05/04 Charging a customer Charging a customer 1. On the Transaction Processing page, click Charge Customer. The Charge Customer page opens. This tells you that this is the Charge Customer page.

11 01/05/04 Charging a customer Charging a customer 1. On the Transaction Processing page, click Charge Customer. The Charge Customer page opens. This tells you that this is the Charge Customer page. You must read this script before you can click Submit and charge your customer. 2. Complete the fields. See Transaction processing parameters on page 2-5 for a description of each field. 3. Read the following script found at the bottom of the Charge Customer page, which clarifies to the customer that their bank account will be debited. Once the transaction has been authorized, your bank account will be debited electronically through the regular banking system. Should the draft or EFT be returned unpaid, a return item fee may also be debited from your account or electronically drafted. Do you authorize this transaction? You must read this script to your customer before you click Submit. Direct Debit User s Guide

Transaction Processing 01/05/04 4. When the customer gives their permission, Click Submit. The following page opens for a successful customer charge: Refunding a customer 1.

12 Transaction Processing 01/05/04 4. When the customer gives their permission, Click Submit. The following page opens for a successful customer charge: Refunding a customer 1. On the Transaction Processing page, click Refund Customer. The Refund Customer page opens. This tells you that this is the Refund Customer page. 2. Complete the fields. See Transaction processing parameters on page 2-5 for a description of each field. 3. Click Submit. The following page opens for a successful customer refund: 2-4

13 01/05/04 Transaction processing parameters Transaction processing parameters This table provides a description of the fields required for verifying, charging, and refunding a customer: Field Customer Information First Name First Name or Business Name MI Last Name Address City State Zip Phone Number Enter your customer s first name. Enter your customer s first name or the name of their business. Enter your customer s middle initial. Enter your customer s last name. Enter your customer s street name and number. Enter your customer s city. Enter your customer s state/province. Enter your customer s zip/postal code. Enter your customer s phone number. Direct Debit User s Guide

14 Transaction Processing 01/05/04 Field Customer Identification Type of ID Number Country State Select an ID type from the drop-down menu. Possible values are: Drivers License Government ID Military ID Generic ID Enter the ID number for the ID type you selected. Select the country from the drop-down menu for which the ID is valid. Enter the state/province for which the ID is valid. See Province/state codes on page A-4 for proper formatting and abbreviations. Transaction Information Pay to the Order Of Amount Reference # This is the name of the payee for the transaction, and is automatically entered. NOTE: For Verify Customer, no money is actually transferred between accounts. Enter the amount of money you want to charge or refund. NOTE: For Verify Customer, no money is actually transferred between accounts. Enter a reference number to enable you to track the transaction. 2-6

15 01/05/04 Transaction processing parameters Field Check Number Type of Check Payment Type Enter a check number for this transfer. For Verify Customer and Charge Customer transactions, your customer provides the check number. For Refund Customer transactions, you provide the check number. Select the check type from the drop-down menu. Possible values are: Personal Business Select the payment type from the drop-down menu. Possible values are: For charging a customer WEB (Personal Check Only) Used to submit debit entries pursuant to an authorization that is obtained through the Internet. PPD (Personal Check Only) (Prearranged Payment and Deposit Entry) used to submit prearranged credit and debit transactions, such as payroll deposits and periodic bill payments. TEL (Personal Check Only) (Telephone- Initiated Entry) used to submit transactions pursuant to a verbal authorization obtained from the consumer via telephone. CCD (Business Check Only) (Cash Concentration or Disbursement) used to submit credit and debit transactions distributing or consolidating funds between two corporate entities ( business-to-business ). For refunding a customer PPD (Individual Only) CCD (Business Only) Direct Debit User s Guide

16 Transaction Processing 01/05/04 Field Recurring? Order Date and Time Type of Customer Bank Name Bank Number Account Merchant Refund Number Transaction Counter Select this check box if this will be a recurring charge to your customer s bank account. Enter the date and time of the order if you are doing the transaction by telephone. Format = YYYYMMDDHHMMSS Select the customer type from the dropdown menu. Possible values are: Personal Business Enter the name of your customer s bank. Enter the 9-digit transit number of your customer s bank. Enter your customer s account number at the bank. This is your merchant name. This field is completed automatically for you. Enter a refund number to enable you to track the transaction. If you wish to submit multiple transactions for the same dollar amount on the same bank account, you must increment this value by 1 each time. This helps to prevent accidental duplicate transactions. Reviewing transactions Optimal Payments direct debit transaction review capability allows you to review all the transactions in your account (verifying, charging, and refunding) and to drill down to view details about each transaction. 2-8

17 01/05/04 Reviewing transactions 1. On the Transaction Processing page, click Review Transactions. The Review Transactions page opens. 2. Complete the following parameters: View From To Parameter Enter the start date of the range for which you want to view transactions. Format = MM/DD/YYYY Enter the end date of the range for which you want to view transactions. Format = MM/DD/YYYY Include You can select one or more of the Include options. Batch Transactions Single Transactions Other Transactions Select this check box to view batch transactions. See Chapter 3: Batch Processing for more information on batch transactions. Select this check box to view individual transactions, e.g., those done in Charging a customer on page 2-3. Select this check box to view other transactions. Direct Debit User s Guide

18 Transaction Processing 01/05/04 Parameter Format You can select only one of the Format options. Summary List Detailed List Comma-separated Select this radio button to see a summary list of transactions. Select this radio button to see a detailed list of transactions. Select this radio button to display the list of transactions in.csv format, which you can then copy and paste into a spreadsheet program. Show You can select only one of the Show options. All transactions Exceptions only Select this radio button to display all transactions processed during the date range selected. Select this radio button to display only Declined and Cancelled transactions. The maximum allowable date range is 31 days. 3. Click Submit. The Transaction Summary page opens. Each transaction in your search is listed here individually. Each ID in the ID column is a link to further detail about that transaction. Transactions are summarized here by type and by status. 2-10

19 01/05/04 Viewing transaction details The Transaction Summary page provides you with the following: A list of individual transactions, with information such as date and time of the transaction, the amount, and whether the line item is a single transaction or a batch. A summary of all the transactions. This summary is broken down by total transactions and total dollar value in two ways: By request type: Charge Customer Refund Customer Verify Customer By transaction status: Approved Declined Pending Cancelled Viewing transaction details You can view further detail about any transaction listed in the Transaction Summary page. Just click on a link in the ID column for the transaction you want to view. The Transaction Detail page opens. Direct Debit User s Guide

20 Transaction Processing 01/05/04 The Transaction Detail page provides you with much more technical detail about each transaction. 2-12

21 CHAPTER 3 Batch Processing Overview Optimal Payments direct debit processing includes a batch processing feature. With batch processing, you can submit a file containing a list of charges and/or refunds to be processed simultaneously, as opposed to processing them individually. On the Main Menu page, click Batch Processing. The Batch Processing page opens. You can perform the following tasks from the Batch Processing page: Process Batch allows you to submit a CSV (comma separated variable) file containing a batch of transactions to be processed. Review Transactions allows you to view details about transaction processing within your account. Direct Debit User s Guide

Batch Processing 01/05/04 Batch processing To process a batch file: 1. On the Batch Processing page, select Process Batch. The Process Batch page opens.

22 Batch Processing 01/05/04 Batch processing To process a batch file: 1. On the Batch Processing page, select Process Batch. The Process Batch page opens. Click here to allow processing of a duplicate file Click the Reset button to clear the File To Upload field. 2. Enter the complete path and name of the CSV file you want to upload, or click Browse to browse to the file. Once you ve selected the file, its path will be displayed in the File To Upload field. 3. Select the Allow Duplicate Batches? check box if you want to be able to submit duplicate batches. A file is considered to be a duplicate if in the last 24 hours another file was processed for which all of the following are true: It was submitted by the same merchant It contains the same number of records and bytes It uses the same file name If this box is unchecked and a duplicate file is received, the submission will be rejected with an Upload Failed message. 4. Click Submit. This sends a copy of the file through the Internet from your computer to the Optimal Payments servers. The following confirmation page opens: 3-2

01/05/04 If a batch upload fails If a batch upload fails Optimal Payments direct debit processing parses files you upload for the presence of all mandatory fields and for correct formatting of all

23 01/05/04 If a batch upload fails If a batch upload fails Optimal Payments direct debit processing parses files you upload for the presence of all mandatory fields and for correct formatting of all fields. If there are any errors detected, then the file will not be processed, and the following page opens, indicating the type and location of error. The reason for the upload failure is given here (in this example, no phone number was provided). If possible, the fields in error and the record(s) in which they were detected will be indicated in the response. You can correct the file and resubmit it. File format For information on formatting your batch file and the records in that file, see support.optimalpayments.com/directdebit.asp. Direct Debit User s Guide

24 Batch Processing 01/05/04 If you omit a value (e.g., when it is optional) you must still enter a blank for that value, offset with commas. For example, if you wanted to omit the address 2 field, which is between address 1 and City, you would enter address 1,,City. If a record has an incorrect number of fields, including blanks, the transaction file will not be processed. Reviewing transactions The Review Transaction link allows you to view details about transaction processing within your account. For information on transaction review, see Reviewing transactions on page

25 CHAPTER 4 Reports Overview The reporting tool allows you to run a report on transactions that have taken place within your account. The resulting report displays such information as transaction totals, dollar amounts, and transaction statuses, both for transactions grouped by day and for individual transactions. On the Main Menu page, click Reports. The Reports page opens. The All Transactions radio button The All Deposits radio button You can run several reports from the Reports page. For example, you can run reports: By date range By transaction status By parameters such as dollar amount or reference number Direct Debit User s Guide

26 Reports 01/05/04 By transaction type By processing stage By deposits Running reports by transaction You can run a report using the following transaction categories: Category All Transactions To Be Processed Voided/Held Allows you to view all transactions within a specified date range. This report will reflect the current status of each transaction. (These are available in the Transaction Review screen. See Reviewing transactions on page 2-8.) Allows you to view all transactions within a specified date range that have passed and been accepted by the online validations, but not yet sent for clearing to the Federal Reserve s ACH. The current status of a check will be displayed in Check Record s Status Field as Process, Hold, or Void. The To Be Processed transaction report also allows access to the merchant functions of Void and Hold. See Performing a Void or Hold on page 4-10 for more information. Allows you to view all transactions with the status of Void or Hold. See Transaction statuses on page 4-11 for more information on these statuses. 4-2

27 01/05/04 Running a report on All Transactions Category Unable to Initiate Processing Returned - Failed Allows you to view all checks within a specified date range that were submitted, and which passed the initial validation process and were sent on for processing. However, these checks were determined to be unacceptable for submission to the Federal Reserve s Clearing House (ACH). There are various reasons why this status would be applied to a transaction. When this report is displayed, the merchant can review the specific reason by clicking on the date in the Initiated column of the specific transaction. Included in resulting detail will be the various reason(s) why this item could not be presented to the ACH system. See ACH return codes on page A-1 and ACH transaction problem codes on page A-4 for more information. Allows you to view all checks within a specified date range that cannot be processed due to processing failure, or that were voided by the merchant (includes all 3rd Presentment Returns). These items are always charged back if they have been paid on. See Appendix B: Returned Items for payment and chargeback information. This chapter does not document every possible report you can run. Instead, it focuses on two that you are most likely to use and benefit from a report on All Transactions and a report on All Deposits. For any other report, follow the same procedure, while choosing the appropriate parameters. Running a report on All Transactions One of the most useful reports you can run is the report that shows you all the transactions processed through your merchant account over the date range you specify. To run a report on All Transactions: 1. Open the Reports page. 2. Select the date range for the report you want to run. The format is MM-DD-YYYY. Direct Debit User s Guide

Reports 01/05/04 3. In the Search Criteria of the Reports page, select the radio button for All Transactions. 4. Select Both Charges and Refunds from the Included drop-down menu. 5. Click Submit.

28 Reports 01/05/04 3. In the Search Criteria of the Reports page, select the radio button for All Transactions. 4. Select Both Charges and Refunds from the Included drop-down menu. 5. Click Submit. The Transaction Summary page opens. The date in the Initiated column is a link to the Transaction Detail page for that transaction. The Transaction Summary page contains the following fields: Field Status Total Number Initiated Amount Reference Check Customer This is the status of the transactions in that row of the Status column. For more information on status descriptions, see Transaction statuses on page This is the total dollar value of the transactions in that row of the Status column. This is the total number of transactions in that row of the Status column. This is the date and time that the transaction request was made. This is the dollar amount of the transaction. This is the reference number entered in the Reference # field of the transaction. For more information, see Transaction processing parameters on page 2-5. This is the name of the customer entered for the transaction. 4-4

29 01/05/04 Viewing transaction details Field Current Status This is the status of the individual transaction. For more information on status descriptions, see Transaction statuses on page Viewing transaction details The Transaction Summary page gives you an overview of all the transactions generated in the report you ran. But you can also drill down to details on a single transaction. To view transaction details: 1. Run a report. 2. On the resulting Transaction Summary page, click a date link in the Initiated column. The Transaction Detail page opens for that transaction. These fields were completed when the transaction was first processed. For a description of all the fields except for the History field see Transaction processing parameters on page 2-5. The History field provides you with two important types of data: The date of the stage in the transaction s life cycle Direct Debit User s Guide

30 Reports 01/05/04 The status at that point in the transaction s life cycle The date of the stage in the transaction s life cycle is displayed here. The status of the transaction at that point is displayed here. Any error code is displayed here. Take, for example, the second row in the sample above: The time of this stage was 19:10 PST, August 15, 2002 The transaction had a status of Processing at that time. For a complete description of statuses, see Transaction statuses on page If a check is returned for any reason, the code identifying that reason will be posted in the History section of the Transaction Detail page. For a description of these codes, see Appendix A: Codes Running reports by deposit This report displays all settlements to and from your merchant account for checks, refunds, etcetera. Running a report on All Deposits One of the most useful reports you can run is the report that shows you all the deposits made to your merchant account over the date range you specify. This report option shows new checks being paid to the you, fees charged, and also checks and fees returned and charged back to the you. To run a report on All Deposits: 1. Open the Reports page. 2. Select the date range for the report you want to run. The format is MM-DD-YYYY. 4-6

01/05/04 Running a report on All Deposits 3. In the Search Criteria of the Reports page, select the radio button for All Deposits. 4. Click Submit. The Deposit Summary page opens.

31 01/05/04 Running a report on All Deposits 3. In the Search Criteria of the Reports page, select the radio button for All Deposits. 4. Click Submit. The Deposit Summary page opens. Totals for the date range are here. Daily totals are here. The dates in the Date column are links to the Deposit Detail page. The Deposit Summary page contains the following fields: Field Date Activity This is the date the transaction was initiated. This is also a link to the Deposit Detail page. This is the type of transaction. Some common values are: Checks Credits Discount Fees Transaction Fees Miscellaneous # of Items This is the number of each transaction type, totaled for the date range and totaled for each day within that range. Amount This is the total dollar value of each type of transaction, given for both the date range and for each day within that range. Direct Debit User s Guide

Reports 01/05/04 Field Net Activity Actual Net Settlement This is the net value (credits minus debits) of activity in your account, given for both the date range and for each day within that range.

32 Reports 01/05/04 Field Net Activity Actual Net Settlement This is the net value (credits minus debits) of activity in your account, given for both the date range and for each day within that range. This is the net value of credits (settled checks) into your merchant account, given for both the date range and for each day within that range. Negative numbers are in parentheses ( ). Viewing deposit details The Deposit Summary page gives you an overview of all the settlements to and from your merchant account, over the date range you specified. But you can also drill down to deposit details for a single day. To view deposit details: 1. Run a report. 2. On the resulting Deposit Summary page, click a date link in the Date column. The Deposit Detail page opens for that day. This is a link to the Transaction Detail page. The Deposit Detail page is subdivided to help you locate transactions more easily. It has: A Checks section for all settlements to your merchant account 4-8

33 01/05/04 Viewing deposit details A Checks Returned section for all checks that could not be processed A Credits Returned section for all credits that could not be processed The Deposit Detail page contains the following fields: Field Date Activity This is the date you clicked on in the Deposit Summary page to get to this Deposit Detail page. See Activity on page 4-7 for description. # of Items See # of Items on page 4-7 for description. Amount Net Activity Actual Net Settlement Date Initiated Checkwriter Merchant Ref # Face/Gross Amount Discount Fee Trans Fee See Amount on page 4-7 for description. This is the net value (credits minus debits) of activity in your account, given for both the date range and for each day within that range. See Actual Net Settlement on page 4-8 for description. See Date on page 4-7 for description. This is the name entered in the First Name, MI, and Last Name fields for the transaction. See Transaction processing parameters on page 2-5 for more information. This is the information entered in the Reference # field for the transaction. See Transaction processing parameters on page 2-5 for more information. This is the value entered in the Amount field for the transaction. See Transaction processing parameters on page 2-5 for more information. This is the discount fee charged on the transaction by Optimal Payments. This is the transaction fee charged on the transaction by Optimal Payments. Direct Debit User s Guide

Reports 01/05/04 Deposit transaction details You can also view the transaction details for any item on the Deposit Detail page. Just click on the date link in the Date Initiated column.

34 Reports 01/05/04 Deposit transaction details You can also view the transaction details for any item on the Deposit Detail page. Just click on the date link in the Date Initiated column. The Transaction Detail page opens. For more information on the Transaction Detail page, see Viewing transaction details on page 4-5. Performing a Void or Hold On occasion, you may be required to change the status of a check to Void or Hold. Hold the check will be held for up to seven calendar days. After 7 p.m. PT on the seventh day, the check will be permanently voided. Void stops the check from being submitted to the ACH system. You have until 7 p.m PT of the same business day to change the status back to Process or Hold. You cannot change the status of a transaction to Void or Hold after 7 p.m. PT of current/next business day, because items have been sent already. 4-10

35 01/05/04 Transaction statuses To perform a Void or Hold: 1. Open the Reports page. 2. Select the date range for the report you want to run. The format is MM-DD-YYYY. 3. In the Search Criteria of the Reports page, select the radio button for To Be Processed. 4. Click Submit. The Transaction Summary page opens, displaying any items that have the status of To Be Processed. 5. Select one of three options for each transaction: Process (default setting) the check will be sent at 7 p.m. PT for processing. Hold Void On weekends and holidays, you can undo the Void until midnight of the following business day. 6. Click Save Changes. The new statuses are now in effect. Any items that have been Held will stay in To Be Processed, Held By Merchant for seven days and can be accessed under To Be Processed up until that time. Transaction statuses This section describes the statuses used in the history portion of the Transaction Detail page. Direct Debit User s Guide

36 Reports 01/05/04 Status To Be Processed Processing Unable to Process Voided By Merchant Voided By Merchant Final Voided After 7 Day Hold Hold Placed By Merchant The transaction was received to begin the submission process. This transaction will begin processing for payment at 7 p.m. PT. However, if the transaction was done on a weekend or holiday, the transaction will begin processing for payment at 7 p.m. PT of the following business day. During the time period that the transaction is at this status, it may still be Voided or Held. The transaction has been sent for processing. Once the status has changed to Processing, no Voids or Holds may be performed on these items. The transaction could not be processed. When this report is displayed, the merchant can view the transaction details by clicking on the date in the Initiated column of a specific transaction. Included in the resulting detail will be the various reason(s) why this item could not be presented to the Federal Reserve s Clearing House (ACH) (see ACH return codes on page A-1 and ACH transaction problem codes on page A-4 for more information). The transaction and the associated discount fees are credited back to the merchant s account (in one net total). The check was voided by the merchant but the check has not as yet been submitted. Consequently, the check could still be Processed or Held if desired (until 7 p.m. PT of the same business day; however, should the transaction have been done on a weekend or holiday, until 7 p.m. PT of the following business day). This check has been voided by the merchant and has passed the 7 p.m PT recall deadline. It is permanently Voided. A Held check has passed the 7 calendar day deadline for submission by the merchant. It is permanently Voided. The check has been Held by the merchant. The merchant has seven calendar days to request that this check be Submitted or Voided. 4-12

37 01/05/04 Transaction statuses Status 1st Presentment 1st Presentment Returned 2nd Presentment The check is at its first submission for clearing via the Federal Reserve s ACH. The proceeds of the transaction are deposited to the merchant s account. If this status message is currently older than 5 business days, it may be assumed that this item will not be returned by the Receiving Depository Financial Institution (RDFI); however, until a full 60 days has passed, it cannot be said with full certainty that the presentment was successful, due to the possibility that an item may come back for Not Authorized or Authorization Revoked for up to 60 days. 1st Presentment of a transaction has been returned by the customer s bank. The returned check is reflected on the online reporting system, along with a reason code and explanation for the return (see ACH return codes on page A-1 and ACH transaction problem codes on page A-4). If a 1st Presentment Returned item is due to R01 (Insufficient Funds) or R09 (Uncollected Funds), then the item will not be charged back to the merchant, but will be re-presented as a 2nd Presentment. If item is returned again, then it will be charged back to the merchant s bank account. If the return is due to any other return code, it will be charged back to the merchant, except for items that are Sent to Research. For more information on merchant payment and chargeback, see Appendix B: Returned Items. Second submission for clearing via the Federal Reserve s ACH. If this status message is currently older than 5 business days, then this item has not been sent back to us from the ACH, and this presentment was successful. The merchant will have been paid at the time of the 1st Presentment, and the 2nd Presentment Returned was floated (not charged back). Direct Debit User s Guide

38 Reports 01/05/04 Status 2nd Presentment Returned 3rd Presentment 3rd Presentment Returned Check Forwarded to Collections Check Returned to Merchant for Collections Cannot Process Further 2nd Presentment of a transaction has been returned by the customer s bank. A reason code and explanation for the return are posted for the merchant to view on the reporting system (see ACH return codes on page A-1 and ACH transaction problem codes on page A-4). The transaction is charged back and associated discount fee credited to the merchant s account (in one net transaction of all activity). Third submission for clearing via the Federal Reserve s ACH. After 5 business days have passed since the 3rd Presentment (with no Return), the merchant will be paid for this item, less the discount fee. Third Return by Customer s bank, no further processing via the ACH. A reason code and its description are posted on the online reporting system for the merchant to view (see ACH return codes on page A-1 and ACH transaction problem codes on page A-4). Collections will now attempt collection on the item. The check has failed all presentments and is returned to the merchant. The merchant will handle the responsibility of collections. No additional notification is provided to the merchant, other than in the online reporting. There will not be any further processing. This status will always accompany the previous two statuses, Check Forwarded Collections and Check Returned to Merchant for Collections. The transaction is charged back and associated discount fee credited to the merchant s account (in one net transaction of all activity). 4-14

39 01/05/04 Transaction statuses Status Sent To Research These are returned items that did not go through on their last Presentment due to some routing or data problem. Research will attempt to correct the problem in preparation for possible re-presentment. If research is able to correct the problem, the item will be re-presented with the same status it had on its last Presentment (see Re-presentable items on page B-2 for more information). If research is unable to correct the problem, the item will be disposed and the next status will be Cannot Process Further (see Disposed items on page B-4 for more information). Sent For Funds Validation Third Presentment after Sent for Funds Validation New Route # New Account # This status means that the check has been presented and returned two times. For items over $50.00, collections attempts to verify that there are available funds in the customer s bank before trying the 3rd and final presentment. For items under $50.00, this is done by timing the re-presentment to a specific time of month when funds are typically replenished by paychecks and other types of monthly and bimonthly deposits (items will hit on the 1st & 16th). The transaction is re-submitted for the 3rd and final time (3rd Presentment) for clearing via the Federal Reserve s ACH. After a 5 business day waiting period has passed, the proceeds of that transaction (less discount fee) are again deposited into the merchant s account. This bank has changed its routing number, and the new number has been inserted in place of the old number. This bank has changed this account number, and the new number has been inserted in place of the old number. Direct Debit User s Guide

40 Reports 01/05/

41 CHAPTER 5 Access Control Overview On the Main Menu page, click Access Control. The Access Control page opens. You can perform the following tasks from the Access Control page: Change PIN allows you to change your own PIN if you have administrative privileges, or if someone with administrative privileges has given you this capability. Add PIN allows you to create a new user. Modify PIN allows you to modify the tasks permissible for an existing user. Changing a PIN This is how you change your own PIN. To change the PIN of another user, see Modifying a PIN on page 5-4. To change a PIN: 1. Open the Access Control page. 2. Click Change PIN. The Change PIN page opens. Direct Debit User s Guide

A confirmation page opens to notify you that the PIN has been changed. Adding a PIN To add a PIN: 1.

42 Access Control 01/05/04 3. Enter your current PIN in the Current PIN field. 4. Enter your new PIN in the New PIN field and in the Confirm New PIN field. 5. Click Submit. A confirmation page opens to notify you that the PIN has been changed. Adding a PIN To add a PIN: 1. Open the Access Control page. 2. Click Manage PINs. The Manage PINs page opens. The Add New PIN button 3. Click Add New PIN. The Add New PIN page opens. 5-2

43 01/05/04 Adding a PIN Select the check boxes for the tasks you want to allow the new user to perform. 4. Complete the following fields: Field PIN Disable PIN Batch Processing Enter the PIN for the new user. Enter a description, for example of the user to whom the PIN is assigned. Check this box to enable or disable the PIN you have created. By default, this box is not checked, leaving the new PIN enabled. Check the boxes for the batch processing functions you want this user to have. Direct Debit User s Guide

44 Access Control 01/05/04 Field Main Menu Access Control Reports Transaction Processing Check this box to give this user access to the Main Menu. Check the boxes for the access control functions you want this user to have. Check the boxes for the reporting functions you want this user to have. Check the boxes for the transaction processing functions you want this user to have. Modifying a PIN To modify a PIN: 1. Open the Access Control page. 2. Click Manage PINs. The Manage PINs page opens. This is a link to the PIN modification page. 3. Click the PIN you want to modify in the PIN column. The Modify Existing PIN page opens. 5-4

01/05/04 Disabling a PIN 4. Modify the fields as necessary. See Adding a PIN on page 5-2 for details on the check boxes. 5. Click Update Disabling a PIN To disable a PIN: 1.

45 01/05/04 Disabling a PIN 4. Modify the fields as necessary. See Adding a PIN on page 5-2 for details on the check boxes. 5. Click Update Disabling a PIN To disable a PIN: 1. Open the Access Control page. 2. Click Manage PINs. The Manage PINs page opens. Direct Debit User s Guide

46 Access Control 01/05/04 3. Click the PIN you want to disable in the PIN column. The Modify Existing PIN page opens. 4. Select the Disable PIN check box. 5. Click Update. 5-6

47 APPENDIX A Codes ACH return codes These are the codes used by the ACH system for identifying the various reasons a check or payment is returned. These codes are generated by customers banks (RDFI) to return items. Code Code R01 Insufficient Funds R21 Invalid Company Identification R02 Account Closed R22 Invalid Individual ID Number R03 No Account/Unable to Locate Account R23 Credit Entry Refused by Receiver R04 Invalid Account Number R24 Duplicate Entry R06 Returned per ODFI s Request R25 Addenda Error R07 Authorization Revoked by Customer * R26 Mandatory Field Error R08 Payment Stopped or Stop Payment R27 Trace Number Error R09 Uncollected Funds R28 Routing Number Check Digit Error R10 Customer Advises Not Authorized * R29 Corporate Customer Advises Not Authorized R11 Check Truncation Entry Return R30 RDFI Not Participant in CK Truncation Program Direct Debit User s Guide 1.0 A-1

48 Codes 01/05/04 Code Code R12 Branch Sold to Another DFI R31 Permissionable Return Entry R13 RDFI Not Qualified to Participate R32 RDFI Non-Settlement R14 Representative Payee Deceased or Unable to Continue in that Capacity R33 Return of XCX Entry R15 Beneficiary or Account Holder Deceased R34 Limited Participation DFI R16 Account Frozen R35 Return of Improper Debit Entry R17 File Record Edit Criteria R36 Return of Improper Credit Entry R18 Improper Effective Entry Date R51 Item is Ineligible, Notice Not Provided, Signature Not Genuine, or Item Altered R19 Amount Field Error R52 Stop Payment on Item R20 Non-Transaction Account *An initially cleared item can be returned as Unauthorized, Authorized, or Authorization Revoked for up to 60 days following the date of Presentment. See Un-Authorized (R07) and Authorization Revoked (R10) on page B-5 for more information. Dishonors & Dishonored Returns Dishonors are used when either the Originating Depository Financial Institution (ODFI) or the Receiving Depository Financial Institution (RDFI) receives an ACH transaction or ACH returned item record and finds that the data contained in the ACH transaction record is in error (either in content or format), and is therefore being Dishonored and sent back. Dishonors are the responsibility of the ODFI and RDFI, and such issues are handled without any involvement by the merchant. A-2

49 01/05/04 Dishonoring return entries Since these dishonors apply to bank errors only, the merchant will never be adversely affected. Dishonors may result in a check being paid to the merchant even when it has been returned for insufficient funds, if the returning bank (RDFI) has made critical errors in sending back the ACH returned items record. In such cases, the RDFI takes the loss on the item in question. Dishonoring return entries These are the return codes used by ODFI to dishonor return entries: Code R61 R62 R63 R64 R65 R66 R67 R68 R69 R70 Misrouted Return Incorrect Trace Number Incorrect Dollar Amount Incorrect Individual Identification Incorrect Transaction Code Incorrect Company Identification Duplicate Return Untimely Return Multiple Errors Permissible Return Entry Not Accepted Contesting dishonored return entries These are the return codes used by RDFI to contest dishonored return entries: Code R71 R72 R73 Misrouted Dishonored Return Untimely Dishonored Return Timely Original Return Direct Debit User s Guide 1.0 A-3

50 Codes 01/05/04 Code R74 Corrected Return ACH transaction problem codes These are reasons that an item cannot be processed Code S1 S2 S3 S4 S5 S6 S7 S8 S9 S10 S11 S12 Invalid Route No Amount Date in the Future Invalid Date Invalid Account No Fee Wrong Number of Fields Invalid Sequence Number Unknown Merchant Duplicate No Amount or Fee Invalid Amount Province/state codes Province Code Alberta British Columbia Manitoba AB BC MB A-4

51 01/05/04 Province/state codes Province New Brunswick Newfoundland Nova Scotia Northwest Territories Nunavut Ontario Prince Edward Island Quebec Saskatchewan Yukon Code NB NF NS NT NU ON PE QC SK YT State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Code AL AK AZ AR CA CO CT DE DC FL GA HI Direct Debit User s Guide 1.0 A-5

52 Codes 01/05/04 State Code Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH A-6

53 01/05/04 Province/state codes State Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Canada International Puerto Rico U.S. Virgin Islands Northern Mariana Is. Guam American Samoa Palau Armed Forces Americas Code OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY CN IT PR VI MP GU AS PW AA Direct Debit User s Guide 1.0 A-7

54 Codes 01/05/04 State Armed Forces Europe Armed Forces Pacific United States Federal Code AE AP US A-8

55 APPENDIX B Returned Items This appendix provides two tables that will assist you in determining when you are paid and when you are charged back for returned items. Settlement Activities by Presentment & Return Number This section tells how the ACH system will generate settlement activities (net deposits) such as merchant deposits and returned item chargebacks. These payments and chargebacks are performed based on the number of the presentment and return. For example, a 1st Return is floated (not charged back) if re-presentable, while a 2nd Return is charged back even if the item is re-presentable. Use this guide in combination with the System actions by return code on page B-2 to determine settlement activities and the disposition of returned items. Status 1st Presentment 1st Presentment Returned Merchant is paid If re-presentable, return is floated by the system and merchant is not charged back; item is re-presented. If Sent To Research, item may be re-presentable and the return will be floated by the system during the research period. During research period, the item will not be charged back. Depending upon the outcome of the research, item may then be re-presented, or disposed and charged back to the merchant. If disposed, item is charged back to the merchant s account. (See System actions by return code on page B-2 to see if an item is re-presentable or not.) Direct Debit User s Guide 1.0 B-1

56 Returned Items 01/05/04 Status 2nd Presentment 2nd Presentment Returned 3rd Presentment 3rd Presentment Returned Merchant has already been paid on the 1st Presentment. The 1st Presentment Returned has been floated by the system, not charged back, so that the merchant still has the first payment on these items. Merchant will be charged back regardless of the reason for the return Payment to the merchant will not be made until 5 business days with no return have passed since the 3rd Presentment. If payment has not yet been made to the merchant, no payment will be made. If payment has already been made to the merchant, item will be charged back to the merchant s account. System actions by return code This section describes how the system will handle each returned item, based on the return code. It tells which returns are charged back and which are re-presentable, and covers three primary categories of returns: Re-presentable items Sent to Research items Disposed items Re-presentable items These are returns for insufficient funds (R01) and uncollected funds (R09) that can be re-presented a second or third time with no changes to the original item needed. Status 1st Presentment Returned Item will not be charged back. B-2

57 01/05/04 Sent To Research items Status 2nd Presentment Returned 3rd Presentment Returned, and merchant has been repaid Item is charged back. Transactions less than $50 are automatically represented on the 1st or 16th. Transactions greater than $50 are sent for manual funds verification In the second case, the collection department manually calls bank to verify funds. If funds available, will resubmit through ACH system. If funds unavailable, will try to hit customer s account on 1st or 16th. Item is charged back. NOTE: 3rd Presentments are initially paid after five business days have passed since the 3rd Presentment. The Next Status will be 2nd Presentment or 3rd Presentment Sent To Research items These are returned items that did not go through on their last presentment due to a routing or data problem. Research attempts to correct the problems in preparation for re-presentment. Code R03 R04 R12 R13 R20 R29 R30 R32 No Account/Unable to Locate Account Invalid Account Number Branch Sold to Another DFI RDFI Not Qualified to Participate Non-Transaction Account Corporate Customer Advises Not Authorized RDFI Not Participant in Check Truncation Program RDFI Non-Settlement-Not Collection Direct Debit User s Guide 1.0 B-3

58 Returned Items 01/05/04 Code R34 R35 R36 Limited Participation DFI (may be converted to a paper draft, or disposed Return of Improper Debit Entry Return of Improper Credit Entry Items that were 1st Presentment Returned will not be charged back. Items that were 2nd Presentment Returned will be charged back. If research is able to correct the problem, the item will be re-presented with the same status it had on its last Presentment. If research is unable to correct the problem, the item will be disposed and the next status will be Cannot Process Further. (See Disposed items on page B-4.) Disposed items Returns that are sent to disposal are removed from the ACH system and sent back to the merchant or to collections. Disposed items are always charged back to the merchant s bank account. No further ACH processing can be done on these items. Code R02 R06 R07 R08 R10 R14 R15 R16 Account Closed Returned per ODFI s Request Authorization Revoked by Customer Payment Stopped or Stop Payment on Item Customer Advises Not Authorized Representative Payee Deceased or Unable to Continue in That Capacity Beneficiary or Account Holder Deceased Account Frozen B-4

Age of Insured Discount

Age of Insured Discount A discount may apply based on the age of the insured. The age of each insured shall be calculated as the policyholder s age as of the last day of the calendar year. The age of the named insured in the