7 Things You Should Do In the Event of a Client NSF

1. Determine if you have time to redraft or must require an immediate wire.

2. Determine if you want to set-up a reserve (or larger reserve) account for a client who NSFs often.

3. Determine if permanent wire is necessary for the client.

4. Ensure you’re not absorbing NSF fees. If so, add your own service fees.

5. Determine if client is worth your company’s time and risk.

6. Require file sent to you earlier than regular deadline.

7. Ensure client’s business is succeeding and profitable.

The Ins and Outs of the NACHA Rule Making Process

NACHA- the Electronics Payments Association, is one of the largest, and most secure payment systems in the world.  It is the governance of the ACH Network for the United States and moves over 20 billion payments annually. In order for a network of this scale to function properly, it requires a standard set of rules and regulations.  The NACHA Operating Rules provide the legal base for the exchange of ACH payments and define the roles and responsibilities of financial institutions and other participants in the ACH Network.  The process of proposing rules and amendments involves a standard procedure with the final decision made by the NACHA voting membership, the decision makers for the NACHA Operating Rules.

The first step to proposing a new or editing an existing rule is to complete the Business Idea Submission Form.  The submission should include the business idea, define its objectives, and identify a project sponsor, potential participants, and a primary NACHA staff contact.  This streamlined process was created to encourage new business ideas and ensure that each proposal is given equal thought and consideration.  For more information about this process or to view the status of your submitted ideas, visit the NACHA Website.

When an idea is submitted, it then follows the standard NACHA Rulemaking Process.  The idea first goes through the steps shown below and if it passes through each committee it reaches the Request for Comment (RFC) stage.  This stage allows the proposal to be posted on the NACHA website and members are able to give their opinions on whether or not they think it should be made an official rule. 

Members’ comments are then compiled by NACHA staff and provide the Standard Rules Group (SRG) with an analysis. The SRG is a committee of appointed NACHA members that decide whether or not proposal is worth pursuing.  Once a few legal and administrative steps are taken, a ballot is created and sent to voters who make the final decision on whether or not the rule is passed. 

NACHA allows every member’s voice to be heard and ensure that all rules are focused on making the ACH system as efficient and safe as possible.  There are many ways to get involved in the rule making process, check on the NACHA website to learn more for details and open committee positions.

Material in this article was found on the NACHA website.  Please refer to the NACHA website directly for more information.

Best Practices for Dealing with an ACH Processing Error

Cachet has put together some best practices for handling an ACH processing problem.

This week, Cachet has been assisting several frantic payroll providers with their ACH processing needs due to an issue with their current provider.  We understand that no company is perfect and sometimes ACH processing errors can occur; being prepared by having a contingency plan can help your staff and your clients in case of emergency. The following are several best practices suggestions that Cachet recommends every payroll provider consider in the event of a problem with their ACH transactions.

Keep the lines of communication open.

This is probably the most difficult item, you will want to respond to each client inquiry immediately but may not have the staff to do so. Make sure to have a method of mass-communicating the most recent information available and assure your clients that you will respond to individual requests as quickly as possible.

Know your ACH provider’s policy for missed transactions.

What are your options and deadlines for your preferred solution? There are usually three options for dealing with a missed or delayed transaction;

• Wait. Your ACH provider likely re-submitted or has already pushed the ACH file through and it will clear the following business day. If you can wait, this is usually the preferred option as it will cause less manual work and is less costly in the long run.
• Run Paper Checks. If you require a same day resolution, run paper checks for all paychecks/direct deposits. Make sure to notify your ACH provider that you are running paper checks so they can stop those transactions from going through.
• Wire Transfer. Another same day resolution is to wire the funds, though wire transfers will require a considerable amount of manual work which you may not have enough time to complete depending on your processor’s wire deadlines. Wires also tend to be the most costly option overall.

Know your clients’ preference.

Keep a record of each client’s preferred resolution in the event of an ACH error on file. It is also a good idea to include legal language in your Employee Direct Deposit Authorizations and/or Client Service Agreements that addresses how a missed transaction or payroll will be handled. Cachet suggests including clauses regarding liability, reversals, and direct deposit timelines for late deposits to your client and employee level agreements. These are suggestions only and should be reviewed by your attorney for your specific needs and situation.

Try to be patient.

Patience is always easier said than done, especially when you have furious clients pounding on your figurative door with questions that you can’t answer. In the event of a missed or delayed ACH transaction, your ACH provider will also be experiencing a higher than normal volume of correspondence and may take some time to respond to your specific inquiry. Be prepared to wait for a response.

Understand your clients’ frustration.

While your ACH processor, their employee(s), their bank, or whomever may have been the root cause of the issue, your clients’ relationship is with you and you alone. They will expect you to have all of the answers and unfortunately you may not have the information they want, do your best to provide all of the information that you do have, explain their options, and listen to their frustrations. Sometimes a sympathetic ear can go a long way.
Cachet has a history of assisting clients who have encountered issues with their current ACH processors. With expedited implementation options and wire services, Cachet offers payroll providers the ability to continue offering direct deposit services for their clients even during uncertain times with their existing ACH provider. Our annual SSAE 16 and financial audits ensure that we adhere to strict internal operational standards, while our $50 million dollar crime bond adds an additional layer of protection for our client’s payroll transactions.

The "Fiscal Cliff" And What it Means For Our Clients

With less than two weeks before the New Year, the White House and House Republicans are still in negotiations on how to avoid the “fiscal cliff” that is set to begin January 1, 2013. The “fiscal cliff” has been a top news story since before the election but what does it mean for your business?

The delays in negotiations pose potential problems for all taxpayers, especially businesses that rely on and create payroll software. The dozens of expected exemptions, deductions, exclusions and changes to the various payroll tax codes/rates make it nearly impossible to begin preparing for the 2013 payroll tax year. Many payroll software companies are gearing up to make quick changes to their payroll software modules as their users grow anxious that there won’t be enough time to implement all of the changes prior to the first 2013 check dates.  Cachet and PTM are taking steps to ensure that our clients will have the smoothest transition into the New Year as possible.

In the past, PTM has dealt with servicing clients whose payroll software companies did not have adequate time to update their systems, specifically with items effecting first quarter payrolls, much like the expected changes to prevent our country from going over the “fiscal cliff.”  PTM is prepared to implement a temporary “workaround” to process data accurately as we receive it from our payroll software vendor partners up to and after the eleventh hour; while Cachet is poised to handle any changes to client processing volume that may occur as a result of the changes. We will be doing as much as we can to help our clients and payroll software vendor partners manage the pending changes. 

With the current fiscal uncertainty and pending political negotiations, rest assured that Cachet and PTM will be up-to-date and serve our clients in the best way possible as the December 31^st deadline approaches.

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B2B Networking: At Conferences, Part 2

Written by: Brooke Pettys, Marketing Specialist

To continue with this week's topic of networking, these tips discuss steps you can take after a conference has ended and ways to ensure a positive follow up response.  Additionally, the Cachet and PTM Regional Managers share some networking tips they have learned over the years that have proven to be effective for them. 

After a conference, the follow up is one of the most important factors when trying to generate new business.  Regional Manager, David Taub, says it’s best to wait 2-3 business days after a conference to follow up with any prospects you may have met.  This is because everyone, including you, is playing catch-up on the days they missed and therefore cannot devote additional time to create new professional relationships right away.  To make sure that you still stick out in your prospect’s mind days after a conference, always write down one personal or professional topic the two of you spoke about on their business card that you can mention again when you call them.  This brings up another important tip, which is making sure that you call first.  You can and should always follow up with an email, but calling a prospect gives you an advantage over the people who solely email and may never get a response back.  Additionally, try and connect with prospects on LinkedIn, or see if you have any shared connections or group between the two of you.  This can bring up another topic to discuss if you feel that your personal anecdote isn’t enough.

Tips learned from conferences:

Cachet and PTM Regional Managers shared great networking tips to follow/not follow that they have seen throughout the years at conferences.  

Scott Johnson stated that “you never want to be the person in the room just collecting business cards trying to meet everybody.  Everyone is trying to create relationships that can move their business forward, and people recognize when someone is not being sincere and are only interested in themselves and their company”.  A great networker is someone that can establish genuine connections and build relationships without having to constantly push their product.  It is better to establish five valuable and genuine relationships than trade 20 business cards without creating engaging in genuine conversation with the people you met.  

David Taub recommended that if you attend a conference alone, which is very likely, it is important that you have no qualms about speaking to competitors, alliance partners, and prospects.  This may take you out of your comfort zone, but keep in mind that most people attending conferences are either alone or with one or two other employees, so they are most likely feeling the same way as you.  

Ken Spitzer discovered that the best networking opportunities often occur at the optional events.  Dinners, golf games, fishing activities, etc. are a great time to get to know people on a personal level and build the relationship from there.  People will most likely remember the conversation they had with you about your shared love of rock climbing a lot more easily than the 5 minute pitch you gave about your company through the midst of the chaos during an event.

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