How to create successful relationships between third-party senders and banks when developing an ACH strategy

Abstract

Third-party senders and financial institutions, when working together to develop a strong Automated Clearing House (ACH) payment strategy and processing profile built on a foundation of sound operating controls, provide the ACH network with high-quality transactions which deliver significant value to all participants. This paper explores the working interactions between third-party senders and financial institution, including an overview of strategic and tactical activities that are leveraged by both parties to manage ongoing ACH transaction quality and data integrity. The reader is introduced to the ACH third-party sender processing model and provided with insight into the deployment of various control points and quality assurance techniques. This paper also highlights key interactions between third-party senders and financial institutions for establishing and monitoring qualitative and quantitative controls, which are important for evaluating ongoing performance and adherence to service levels.