- Q: What is ACH? The definition of ACH is Automated Clearing House. It is the electronic funds transfer system used to transmit funds such as direct deposits, collections, tax files and other monetary transactions from one account to another.
- Q: What is NACHA? NACHA stands for National Automated Clearing House Association. The ACH system is governed by the rules of the National Automated Clearing House Association. This system provides for the interbank clearing of electronic entries for participating financial institutions.
- Q: What does ODFI mean? ODFI stands for Originating Depository Financial Institution. This is the bank or financial institution that transmits your ACH files directly to the FRB (Federal Reserve Bank).
- Q: What type of ACH file format does Cachet support? Cachet supports NACHA formatted files.
- Q: How do I transmit my files to Cachet? Just upload your NACHA formatted file to Cachet's website. You will need an Internet connection such as DSL, Cable, or a Dial-up to access Cachet's website. Although acceptable, Dial-up is not recommended.
- Q: What kind of internet connection (speed) do I need? DSL and Cable connections are preferred and offer an Internet speed of 125 Kbps to 256 Kbps. However, Dial-up connections of 56 Kbs are acceptable, but are not recommended as it will take longer to transmit.
- Q: How much time does it take to transmit an ACH file to Cachet? Transmission (file uploading) time varies based upon the size of your file and the speed of your Internet connection. DSL, Cable and other high-speed connections typically take only a few seconds. However, if you are using a modem, then it may take more time to upload based upon Internet traffic.
- Q: What internet browser software do I need to use for your system? Any browser that has a minimum of 128-bit encryption. For maximum data security Cachet recommends Internet Explorer version 6 or higher). You can verify the encryption by selecting the Help Menu in your browser and then selecting About Internet Explorer (or About Netscape Navigator, etc.).
- Q: What is Cachet's cut-off time or transmission deadline? Cachet's daily transmission deadline is 6:00pm PST, Monday - Friday (except federal holidays). However, Cachet processes several times per day, including 10:00am PST and 3:00pm PST. Please feel free to review the FRB holiday schedule for black out days.
- Q: What type of transactions can I send via ACH? Direct Deposits, Fee Collections (billing), Tax Collections and Payments (federal and state), Garnishments, Child Support, Pay Cards, Agency Checks, etc. Cachet handles any payroll related electronic transactions.
- Q: What is the benefit to sending Tax Payments via ACH versus EFTPS? By sending all your tax payments via ACH, you are simplifying and reducing the time required by your company to compile a client's information. Your company is able to consolidate tasks, which reduces the likelihood of errors. In addition, your company can quickly and easily reverse an NSF or overpayment via ACH. With EFTPS, overpayments and reversals are possible, but very time consuming and difficult to perform.
- Q: Is there a limitation on how many files or records we can send? No limitation.
- Q: Is there a dollar amount limitation to the files? No limitation.
- Q: What software do I need in order to generate ACH files for your system? Cachet accepts files from any payroll software that generates standard NACHA formatted files.
- Q: How do I determine which ACH or Payroll Tax System would be best for my company? Cachet can help you determine which system would suit your company's needs. Contact Cachet for more information.
Our whitepaper, What Every Payroll Provider Needs to Know about Security Best Practices for ACH Direct Deposits, identifies recommended security layering to protect your ACH payroll processing transactions so you can sleep well at night knowing that your client payroll funds are secure.