ACH Origination

ACH Origination is an exciting service offered by WCCU that allows any business member to originate electronic transactions. Organizations that originate these transactions are called Originators. Transactions can be either debits or credits. Examples of debit transactions include utility payments, account drafts, membership fees, dues, insurance premiums, etc. Credit transactions are usually for Direct Deposit of Payroll, electronically crediting a deposit account for the net payroll amount.

Participation in ACH Origination can reduce the costs associated with manually processing debits and credits. The cost to create and distribute payroll checks ranges from $ .50 to $2.00 per check. If you factor in the hassle of employees trying to get a deposit in on time, second or third shift employees, and absent or sick employees, manual payroll distribution can negatively impact your organization. The cost of Direct Deposit of Payroll using ACH Origination is only a fraction of the cost of manual processing.

Similarly, the cost of manually creating invoices, mailing them to customers, providing a return envelope, waiting for checks to be mailed, and creating deposits averages $1.00 to $3.00 nationally. Direct debit using ACH Origination is the most cost-effective way of processing any type of receivable that is currently handled manually.

Direct deposit is the most common transaction using the ACH network. Direct Deposit allows a business to pay an employee for payroll, expense reimbursements, bonuses, pensions, and dividends to a checking or savings account at a financial institution located in the U.S.

  • Direct deposit saves the time and cost of making a trip to the bank to deposit funds.
  • Direct deposit means no chance for a paycheck to be lost or stolen.
  • Direct deposit is convenient, safe, and reliable.

This is used for recurring payments to a business. A customer may give a business authorization to have the payment debited directly from their checking or savings account at a financial institution located in the U.S. This can be used to collect club dues, rent, utility, insurance, and mortgage payments.

Improves cash flow of a business by:

  • Reducing processing costs.
  • Funds are made available immediately upon deposit. (no holds)
  • Improves collections.
  • Receiving fewer return items.
  • Enhancing customer retention.

Direct payments means no writing checks to pay bills, no stamps to buy for mailing payments. Payments are never late, because the timing of direct payments is set up in advance. On-time payments help create and maintain a good credit history. Only transactions a customer authorizes in writing can be debited from their account.

For more information, please contact our ACH department and we will be happy to assist you.