ACH Payroll Processing & Fedwire Blog

ACH Payroll Processing & Fedwire Blog

Cachet's Culture of Compliance Makes Audits Painless

Tuesday, April 02, 2019
Cachet's Culture of Compliance Makes Audits Painless

In the financial services industry, compliance processes are as important as anything else you can do for your clients.

Achieving the highest levels of security with the ease of processing that busy clients expect, can be challenging. For many financial services businesses, it’s a balancing act that comes with unacceptable risks of failure on both sides of the effort.

No matter how easy you make things for your clients, unless they have confidence in your ability to protect them from errors and compliance risks, they won’t be satisfied.

At Cachet, President Aberash Asfaw says, from the very beginning the company recognized that achieving both security and ease of processing at the highest levels would require a different approach. Cachet's ACH security processes provide clients with a level of assurance that couldn’t be reached by just doing what everyone else was doing.

Instead, Cachet built the company around a culture of compliance that requires a commitment to security every bit as demanding as the effort put into making things easier for clients.

It starts with a grueling process of third-party scrutiny that goes beyond the requirements. This allows us to pass the security benefits on to clients while sparing them the experience of having to undergo multiple audits. While there's no such thing as ACH processing security made easy, it is possible for your ACH provider to make it easier for you.

Embracing the Audit Process

The word "audit" fills many business owners with dread. Putting themselves under the microscope is time consuming, uncomfortable and sometimes expensive. That's why Cachet does it for them. And we are happy to do it. When it comes to audits, we are all in.

"We welcome auditing because it helps us to be a better entity," Asfaw says. A former auditor herself, she understands the fear that many business people have of a process designed to expose their flaws or weaknesses. "I have been on both sides of the desk," she says. "I do understand that pain."

At Cachet, however, it's a process we put ourselves through voluntarily, on a regular basis. "We don't fear that. We love that," Asfaw says. "We have a strong belief that audits are healthy; they help us grow and mature."

When it comes to audits, Cachet is knowledgeable, experienced and prepared. We've been putting our practices and procedures through the scrutiny of third-party audits for well over a decade.

The Buffer Between the Bank

If you use a bank for your ACH processing, you have to be prepared for frequent bank audits that can come at any time. It is not an easy process.

If you're a Cachet client, we handle this for you. "We are the buffer between our clients and the bank," says Operations Director Hanan Succar. "We take the heat."

We also manage our clients' annual audit of compliance with National Automated Clearing House Association (NACHA) rules. But we don't stop there.

Digital Security Audits

When we say we welcome audits, we mean we invite them, required or not.

Financial audits allow Cachet to see that financial strategies are being carried out according to plan, to zero in on weak points and make budgeting and planning more accurate, Asfaw says. Digital security audits remove the "internet blinders" that prevent some companies from seeing threats they'd rather not see.

Cachet wants to see. Keeping our processes buttoned up tight means our clients' processes are buttoned up tight. It is not a coincidence that Cachet clients have an extraordinarily low NSF rate - two ten-thousandths of a percent – and save an estimated $6,000 a year per client in NSF fees when compared to NACHA industry averages of between .5% and 1.5%. They also save time and worry.

Audits are not cheap. But as an investment in peace of mind, they're as solid as they come. Our clients love the layers of security built into our processes.

Audits and Testing

Here is an overview of the audits we conduct and undergo year-round to ensure that we are operating at the highest level of security, accuracy, efficiency, compliance and customer satisfaction.

  • Remarketers Audit: While we take on the heavy lifting of recurring audits, we review incoming clients' processes against a standard matrix as part of our onboarding practices. This helps us ensure that our clients stay healthy ... and we also stay healthy.
  • Financial Audit: Our financial statements are verified by an independent third-party auditor annually to ensure that we are in compliance with generally accepted accounting principles and that our internal controls are strong.
  • SOC-1 Audit: An independent, third-party review of our internal policies, procedures and technologies for protecting client data.
  • NACHA Audit: This annual audit is required under NACHA operating rules for all participating depository financial institutions, third-party service providers and third-party senders to ensure compliance with NACHA rules.
  • Penetration Testing: We have this testing performed by third-party independent testers who attempt to expose any vulnerabilities to our cyber defenses.
  • Bank Audits: In addition to all of the other audits, we are frequently required to undergo bank audits on behalf of our remarketers. We manage these for our clients, saving them a considerable amount of time and effort.
  • Rackspace Data Protection: We use an industry giant named Rackspace to stay between us and the cyber attackers our industry is combating.

Secure, Reliable ACH Processing

We don't believe you can find a more secured and reliable partner for ACH payroll processing. But we welcome you to put us to the test. Give us a call or click on the link below to learn more about what we can do for your payroll processes.

Contact us today to learn more about same-day ACH direct deposit for payroll


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