Q. How do Limits and Approval functions work in Business Banking?
For the ACH , Wire Transfer and Tax Payments features, Business Banking allows the financial institution to modify behavior for each Customer a bank's customer, a thrift's customer, or a credit union's member.. By default, Business Banking does not require approval on wire transfers, ACH batch An ACH batch consists of a template (see below) and a collection of transactions having the same purpose and effective date to be performed, and may also include addenda information. or tax payments, as long as their dollar amounts do not exceed the initiating user’s per-transaction/batch limit and the user’s daily running total (including the new transaction An ACH transaction is an entry within the NACHA file that indicates how the participant The participant is the individual or organization that will be affected by the ACH transaction (payee or draftee). An ACH transaction may debit or credit a participant's account, e.g., a payroll deposit or a payment for services rendered. The participant information is referenced by the ACH transaction.'s account should be affected. The transaction includes a reference to the participant, how the account is affected, and the amount. or batch) is still below his/her daily limit. Business Banking does not by default require approval on Wire Transfer Template creation or update; new or modified templates may be used immediately under the default rules.
Business Banking does require approval on any wire transfer, ACH batch or tax payment that exceeds the user’s per-transaction/batch limit. The system similarly requires approval on any wire transfer, ACH batch or tax payment that would push the user’s daily running total over his/her daily limit. In addition, the company daily limit is strictly enforced and cannot be waived or defeated by any mechanism built into the system – if a company needs to exceed its daily limit, a company representative must contact the financial institution a bank, thrift, or credit union and make special arrangements.
Q. When setting up a customer, are daily limits required for ACH, wires, and EFTPS Electronic Federal Tax Payment System is a government program to pay federal tax obligations electronically.?
Yes, if that functionality is being granted by the FI to the Company.
Q. Why would a financial institution admin receive two emails notifying that there is an ACH to approve?
If the financial institution admin selected both “Require Approval” and “Require Approval by Other User”, an email will be sent out for each condition. That is, when an ACH is submitted, Business Banking will recognize that the ACH needs to be approved as well as needs to be approved by another user and will send an e-mail for each. The financial institution admin should only have one of these options checked.
Q. What does the Restrict function do?
If the “Restrict Initiation if User Limits are Exceeded” box is checked, no transactions exceeding transfer limits can be initiated. This applies to per-transaction limits as well as daily limits.
Note: The diagram on the following page illustrates the Limits and Approvals process for Wire, ACH and EFTPS transfers.