Professional Documents
Culture Documents
or different banks, through the use of wire transfer, automatic teller machines or computers, but without the use of paper documents The use of telecommunication networks to transfer funds from one financial institution, as bank, to another or to withdraw funds from ones own account to deposit in a creditors
authorizes you to deduct the amount of their payments on a certain date Your customers provide you with a voided check to verify account information, your charges are then automatically deducted from their bank accounts each week or month on the day they are due and deposited into your account. Unlike most of our competitors your funds are not held for 3 to 5 days since you have direct, password protected access, you receive your funds within 24 hours
Characteristics of ACH
Any size dollar amounts
Generally batch payments ( e.g payroll to large number
of payees or drafts from large numbers of remitters) Settlements date or more days after date initiated Less expensive than wire transfers
bank account at any time there is no need for the manager to leave the comfort of his office to perform the transaction No delay connected with paperwork No need for cheques or cash
exchange information, files and documents. EDI has replaced the fax machine and mailing list when it comes to information sharing, using EDI,sharing of data is much quicker and cost effective
through an interface program. The application edits the order and relays it to the intermediate EDI files The purchase order is changed to the EDI standards formats the application can decipher. The translation program can function with several programs, allowing the receivers system to interpret the order. The modem relays the order through a value added network The network proceeds to take the order. From the EDI format its changed back into the senders original format to allow the receiver to read the document.
money and helps preserve the enviroment,also reduces the odds of errors appearing in the document Information sharing becomes quicker and more effectual, the end results is increased productivity. Response times get quicker and management of information is simplified
application have different features and the cost will vary as well. Look for an application that meets your needs and budget, should be designed so it can be activated by a single trading part Automation is a necessary feature which will help to put the steps into sequence.
Digital/Electronic Checking
Also know as e-checks meaning that instead of a paper
check the customer fills out their banking information(bank account number, routing number) online In a more simple language an e-check is an electronic version of a paper check, it can be used in any transactions where paper checks are used-yet it capitalizes on the speed and processing efficiencies of all electronic payments
entities that might prefer to pay on credit or through some mechanism other than cash, electronic checks are modeled an paper checks, except that they are initiated electronically Use digital signatures for signing and endorsing and require the use of digital certificates to authenticate the payer, the payer bank and bank account The payer writes the e-check through a computer, uses a digital signature and sends it either by direct transmission using telephone lines or by public networks e.g. internet The payee receives it verifies signature,endoses it, writes a deposit slip, and signs it.
Cont.
The endorsed check is then sent over internet to the
payees bank for deposit. Bank personnel verify signatures, credit the deposit, and then clear and settle the endorsed e-check by sending it debited from the payers account. The cryptographic certificates used with an e-check enable a check payee to determine the validity of the signatures.
simplifying customer education They are well suited for clearing micro payments, the conventional cryptography of electronic checks makes them easier to process than systems based on public key cryptography It can serve corporate markets. Firms can use electronic checks to complete payments over the networks in a more cost-effective manner than present alternatives
Cont.
It creates float and the availability of floats as an
important requirement for commerce. The third-party accounting server can earn revenue by charging the buyer or seller a transaction fee or a flat rate fee or it can act as a bank and provide deposit accounts and make money from the deposit account pool This technology links public networks to the financial payments and bank clearing networks, leveraging the access of public networks with the existing financial payments infrastructure