| Title: | DEBIT OF ACH TRANSACTIONS |
|---|---|
| Date: | 1994-01-14 |
| To: | abi |
| Links: | previous, next |
MANY QUESTIONS HAVE BEEN ASKED REGARDING WHEN AN ACH PAYER'S ACCOUNT
WILL BE DEBITED. THIS IS OF SPECIAL CONCERN WHEN A HOLIDAY IS INVOLVED.
THE FOLLOWING INFORMATION WILL PROVIDE A GUIDELINE WHICH MAY BE USED IN
DETERMINING WHEN AN ACH PAYER'S ACCOUNT WILL BE DEBITED.
ACH TRANSACTIONS WILL NORMALLY BE DEBITED FROM A PAYER'S ACCOUNT BY
THE PAYER'S FINANCIAL INSTITUTION TWO BUSINESS DAYS FROM THE DATE THAT THE
ACH TRANSACTION (ABI APPLICATION QN) WAS ACCEPTED ERROR-FREE BY CUSTOMS.
THIS DOES NOT INCLUDE SATURDAYS, SUNDAYS, OR FEDERAL HOLIDAYS (SEE LIST
BELOW. FOR EXAMPLE:
* ACH PAYMENT AUTHORIZATIONS SENT AND ACCEPTED BY ABI ON MONDAY SHOULD
BE DEBITED ON WEDNESDAY (THE SECOND BUSINESS DAY).
ACH PAYMENT AUTHORIZATIONS SENT AND ACCEPTED BY ABI ON THURSDAY SHOULD
BE DEBITED ON MONDAY (THE SECOND BUSINESS DAY).
* ACH PAYMENT AUTHORIZATIONS SENT AND ACCEPTED BY ABI ON FRIDAY SHOULD
BE DEBITED ON TUESDAY (THE SECOND BUSINESS DAY).
* ACH PAYMENT AUTHORIZATIONS SENT AND ACCEPTED BY ABI ON SATURDAY WILL
NORMALLY BE INCLUDED IN CUSTOMS END-OF-DAY PROCESSING OF FRIDAY'S
TRANSACTIONS AND THOSE SENT AND ACCEPTED BY ABI ON SUNDAY WILL NORMALLY
BE INCLUDED IN CUSTOMS END-OF-DAY PROCESSING OF MONDAY'S TRANSACTIONS.
CUSTOMS END-OF-DAY PROCESSING
CUSTOMS END-OF-DAY PROCESSING IS NORMALLY COMPLETED BETWEEN THE HOURS OF
12:00AM (MIDNIGHT) AND 5:00AM. IT IS DURING THIS PROCESS THAT ACH PAYMENT
AUTHORIZATIONS TRANSMITTED TO ABI SINCE THE LAST CUSTOMS END-OF-DAY
PROCESS OCCURRED ARE BATCHED FOR TRANSMISSION BY CUSTOMS TO THE
CLEARINGHOUSE BANK (CURRENTLY, MELLON BANK). ANY ACH PAYMENT
AUTHORIZATIONS RECEIVED AND ACCEPTED BY ABI PRIOR TO COMPLETION OF CUSTOMS
END-OF-DAY PROCESSING ARE INCLUDED IN THIS BATCH REGARDLESS OF THE DATE OF
THE TRANSMISSION TO ABI. FOR EXAMPLE, IF AN ACH PAYMENT AUTHORIZATION IS
RECEIVED AND ACCEPTED BY ABI ON TUESDAY MORNING AT 12:05AM (5 MINUTES
AFTER MIDNIGHT) AND CUSTOMS END-OF-DAY PROCESSING FOR MONDAY HAS NOT
COMPLETED, THIS ACH PAYMENT AUTHORIZATION WILL BE INCLUDED IN MONDAY'S
BATCH. CUSTOMS RECOMMENDS THAT ALL ACH PAYMENT AUTHORIZATIONS BE
TRANSMITTED TO ABI BETWEEN THE HOURS OF 6:00AM AND MIDNIGHT, EASTERN
STANDARD TIME.
THE SCENARIO FOR THE ACH PAYMENT PROCESS IS AS FOLLOWS:
DAY 1 THE ABI FILER TRANSMITS AN ACH PAYMENT AUTHORIZATION TO CUSTOMS
ABI. IF THE TRANSACTION IS ACCEPTED BY ABI, A MESSAGE STATING
"PAYMENT ACCEPTED" IS SENT BACK TO THE FILER VIA ABI.
DAY 2 CUSTOMS END-OF-DAY PROCESSING OCCURS (MIDNIGHT TO 5:00AM) AND ALL
ACH PAYMENT AUTHORIZATIONS RECEIVED WITHIN THE PREVIOUS DAY'S
PROCESSING PERIOD ARE BATCHED AND ELECTRONICALLY TRANSMITTED BY
CUSTOMS TO MELLON BANK. IF THIS TRANSMISSION TO MELLON BANK
OCCURS ON A BUSINESS DAY (NOT A WEEKEND OR ONE OF THE HOLIDAYS
LISTED BELOW) MELLON BANK PROCESSES THE TRANSACTION FROM CUSTOMS
AND ELECTRONICALLY SENDS THE DEBIT TO THE PAYER'S BANK THROUGH THE
FEDERAL RESERVE. IF THIS TRANSMISSION TO MELLON OCCURS ON A
WEEKEND OR HOLIDAY, MELLON BANK HOLDS THE TRANSACTION AND
PROCESSES IT THE FOLLOWING BUSINESS DAY.
DAY 3 THE PAYER'S BANK RECEIVES THE ACH TRANSACTION. IF THIS RECEIPT
OCCURS ON A BUSINESS DAY FOR THE PAYER'S BANK, THE PAYER'S ACCOUNT
MAY BE DEBITED REGARDLESS OF WHETHER OR NOT THAT DAY IS A FEDERAL
HOLIDAY FOR U.S. CUSTOMS OR MELLON BANK.
PAYERS SHOULD DETERMINE WHETHER HOLIDAYS OBSERVED BY U.S. CUSTOMS
DIFFER FROM THOSE OBSERVED BY THEIR OWN BANK. FOR EXAMPLE, THE UPCOMING
HOLIDAY, JANUARY 17, 1994, (DR. MARTIN LUTHER KING JR. DAY) IS A FEDERAL
HOLIDAY. HOWEVER, THERE MAY BE BANKS WHICH ARE OPEN ON THAT DAY AND WILL
PROCESS ACH TRANSACTIONS THAT HAVE BEEN RECEIVED. THEREFORE, ACH PAYMENT
AUTHORIZATIONS WHICH ARE SENT TO ABI ON THURSDAY JANUARY 13, 1994 MAY OR
MAY NOT BE DEBITED AGAINST THE PAYER'S ACCOUNT ON MONDAY JANUARY 17, 1994
DEPENDING ON WHETHER THE PAYER'S BANK IS OPEN FOR BUSINESS.
IT IS THE REPONSIBILITY OF THE PAYER TO ENSURE THAT FUNDS ARE DEPOSITED
TIMELY. FUNDS SHOULD BE AVAILABLE AT THE TIME THE PAYER AUTHORIZES THE
ACH TRANSACTION. THE PAYER WILL BE HELD RESPONSIBLE FOR RETURN ITEMS
RESULTING FROM INSUFFICIENT FUNDS AVAILABLE AT THE TIME OF DEBIT.
FOR YOUR INFORMATION, THE 1994 HOLIDAYS ARE:
NEW YEAR'S DAY, OBSERVED FRIDAY DECEMBER 31, 1993
DR. MARTIN LUTHER KING, JR. DAY MONDAY JANUARY 17
PRESIDENT'S DAY MONDAY FEBRUARY 21
MEMORIAL DAY MONDAY MAY 30
INDEPENDENCE DAY MONDAY JULY 4
LABOR DAY MONDAY SEPTEMBER 5
COLUMBUS DAY MONDAY OCTOBER 10
VETERAN'S DAY FRIDAY NOVEMBER 11
THANKSGIVING DAY THURSDAY NOVEMBER 24
CHRISTMAS DAY, OBSERVANCE MONDAY DECEMBER 26
QUESTIONS MAY BE DIRECTED TO YOUR CLIENT REPRESENTATIVE.