Welcome to Alpine Bank ACH, and thank you for allowing us to assist you with your ACH needs.
This quick guide provides a brief summary of ACH facts and Originator Responsibilities. This is not intended to be a replacement or substitution for the Nacha Rules and Guidelines. Nacha rules are subject to change.
What is the ACH Network?
The Automated Clearing House (ACH) is an electronic network for moving money and information from one bank account to another through Direct Deposit and Direct Payment via ACH transactions. This includes ACH credit and debit transactions; recurring and one-time payments; government, consumer and business-to-business transactions and payments with payment-related information.
Relevant Terms and Definitions:
| ACH - An acronym used to identify the Automated Clearing House Network |
| BATCH - A means of submitting multiple transactions at one time, rather than entering transactions separately |
| EFFECTIVE DATE - The date that you as the Originator intend the transaction to clear, typically the same as the Settlement Date |
| Nacha - The National Automated Clearing House Association develops and maintains the Nacha Operating Rules and Guidelines. |
| ORIGINATOR - Company or individual that initiates an ACH transaction according to an arrangement with a Receiver |
| PRE-NOTIFICATION - A zero-dollar entry to verify account information. Prenotes are optional; however, if sent, a prenote must take place at least three (3) banking days before the first live entry. |
| RECEIVER - Company or individual that has authorized the Originator to initiate an ACH entry to the Receiver’s account. |
| SETTLEMENT DATE - The date the funds post to the account, typically the same as the Effective Date. |
Your Responsibility as an Originator:
|
Obtain authorization from Receiver |
Credits: Can be oral or written |
|
Notify Receiver if the date or amount of payment is changing |
Date: Must notify Receiver seven (7) calendar days prior to change |
|
If a Notification of Change (NOC) is received, you must cease subsequent entries until you have made the appropriate changes to the Receiver’s account information |
Changes to Receiver’s account should be made within six (6) banking days from the receipt of the Noti cation of Change (NOC) |
|
Ensure the security procedures outlined in the Alpine Bank ACH Origination/Third-Party Sender Service Agreement are followed |
You may obtain a copy of your ACH Origination Service Agreement at any time by contacting Alpine Bank's Commercial Services group at 970-257-5996 |
*This is not a full list of Originator responsibilities. For a full list, please reference the latest publication of the Nacha Operating Rules.
Notification of Change (NOC) and Returns
A NOC is created by the Receiver’s Financial Institution and is sent to inform you that the information contained in your live-dollar transaction or pre-notification is inaccurate and must be changed. For example, if you submit a payment in which the account number is no longer valid, you will receive a NOC so that you can update your information for any subsequent payments.
An ACH return is an ACH entry that the Receiving Financial Institution is unable to post for reasons identified by a return code. If you receive a return entry for any reason, with the exception of insufficient funds, you must discontinue initiating the entries and contact the receiver.
Note: If your transaction is returned with the return reason "Unauthorized" and a valid authorization exists, you may have recourse outside the ACH Network.
Reinitiation of Return Entries
You may reinitiate or retry an entry that has been previously returned if:
| The entry was returned for insufficient or uncollected funds |
| The entry was returned as a stop payment, and reinitiation has been authorized by the receiver |
| Corrective action was taken to remedy reason for return |
Note: Entry must be reinitiated within 180 days of settlement of the original entry. You may reinitiate an entry that has been returned for insu cient or uncollected funds two times following the return of the original entry (for a total of three
times).
SEC Codes – Consumer VS Corporate
Standard Entry Class (SEC) codes determine the type of entry you are initiating. Some SEC codes may only be used for either consumer or corporate transactions. The most commonly used SEC codes are PPD (Business to Consumer) and CCD (Business to Business). Examples of the uses of these SEC codes are below:
| SEC Code | Type of Entry | Example |
|---|---|---|
| PPD | Business to Consumer | Payroll, HOA Dues, Rent |
| CCD | Business to Business | Vendor Payments, Billing, Fees |
Additional Information
Processing Schedule
- Credit Entries: until 3:00 p.m. MT, two (2) business days prior to Effective Date
- Debit Entries: until 3:00 p.m. MT, one (1) business day prior to Effective Date
Contact Information
Commercial Services
Monday – Friday, 8:00 a.m. – 5:00 p.m. MT; excluding holidays
Phone: 970-257-5996
Toll Free: 833-325-7902
This user-friendly guide is based on the Nacha Operating Rules (referred to as the ACH Rules), Regulation E and the Uniform Commercial Code Article 4A (UCC 4A) and supplements more extensive resource materials. It references various in-depth resource materials and is not intended as a substitute for referencing and complying with the rule requirements published in the ACH Rules. Nacha Operating Rules are subject to change.