Automated Clearing House Overview
An Automated Clearing House (ACH) is a facility established within the financial services industry. The main function is to administer and control the exchange of payment transactions between participating financial institutions within a particular geographic location. It also generates the instructions to the Central Bank which enables settlement between the Commercial Banks.
The early deployment of ACH services was mainly for the interchange of cheque payments. More recently, they have become responsible for the exchange and clearing of large volumes of transactions, involving different payment types.
ACH credit transactions include:
- direct transfers of salaries and wages,
- consumer account payments and
- utilities and other account disbursements.
ACH debit transfers include:
- amounts payable such as insurance premiums,
- loan repayments for vehicle and mortgage and
- other recurring payments.
Automated Clearing Houses facilitate the flow of payments between accounts at different banks.
Finteq ACH Overview
The FINTEQ ACH solution is a modular electronic clearing house system. It provides a comprehensive platform for the interchange and settlement of various payment types between financial institutions participating in a particular clearing and settlement area. The system receives, verifies, converts, enriches, sorts, directs and dispatches transactions to defined destinations. Flexible, predefined workflows determine the processes required to manage each different payment type from input to completion.
With FINTEQ ACH you can enable the rapid creation of a new clearing and settlement system. You can also allow the participation of new participants in an existing arrangement.
The system is developed to handle open interoperable standards such as ISO 20022. It also has the ability to convert other file formats within the receiving/dispatch gateway modules to enable the participation of other protocols and formats.
- Receipt and validation of input submissions
- Payments are passed through a financial process. This process performs the functions relating to clearing and settlement.
- Transactions are transferred to the output module. This module manages the onward distribution of files and payments. All processing meets the requirements of the recipient institutions and destination systems.
The FINTEQ ACH solution includes a range of services. The specific purpose is to monitor and control the workflows and activities within the clearing and settlement process. Activities include:
- routine operational processes,
- exception item handling,
- system administration,
- report management and
- archival/warehousing services.
All activities executed by the system are logged and available for functional review and audit purposes. System operations can be managed locally and remotely