ACH Payroll Processing & Fedwire Blog

ACH Payroll Processing & Fedwire Blog

How to Avoid the Dreaded Payroll NSF

Thursday, June 15, 2017
How to Avoid the Dreaded Payroll NSF

Insufficient funds can be an expensive problem for payroll providers, and can lead to bankruptcy.

Cachet Financial Services offers two wire service options for you to take complete control over your client payroll funds and prevent the dreaded payroll NSF. By working with us, you will never again have to pray to the “no NSF” gods the week following payroll…

Fedwire Drawdown / Automated Reverse Wire

Fedwire Drawdown, which we call automated reverse wire, is a wire service ideal for processing payroll for clients that have 25 to 30 or more employees. All your clients need to do is authorize their bank to accept this type of wire from us. Then get your ACH payroll processing files to us two days prior to each payroll (by 8pm ET/5pm PT). We will perform each drawdown Fedwire automatically, which is why we call it “automated reverse wire.”

The biggest benefit to this service is that it guarantees funds. There is virtually no possibility of NSFs because we won’t send out employee funds until we confirm that we’ve received your client’s wired payment. If we don’t receive their payment in time, our system automatically suspends their payroll. If we do receive it on time, your client’s payroll is automatically released.

Direct Wire

Automated reverse wire is also about one-third of the cost as direct wire, but sometimes our payroll provider’s clients need to make one-off payments. This occurs when your client wants to pay bonuses, your client’s bank does not offer Drawdown Service, or for your new clients where more trust needs to be established before you want to offer ACH payroll processing via Fedwire drawdown.

Direct wire is less convenient than automated revers wire: your client has to initiate the wire at their bank, and both the bank and Cachet Financial Services have to charge you because of the manual processing involved. However, it gives you the protection needed in risky scenarios.

Not Sure What You Need?

Contact our ACH direct deposit payroll processing experts who can learn about your situation and make recommendations based on a best practices approach.

Contact us to learn more about avoiding NSFs with our wire services


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