Business Banking

Accounts/Services

Electronic Services

Direct Deposit

Direct Deposit is the most common application for ACH. It is primarily used for the deposit of payroll, however, it can also be used for the additional applications listed below. Direct Deposit transactions can be recurring or one-time deposits.

Benefits

  • Increases reliability and security, eliminating reissues for lost or stolen checks
  • Provides employee convenience because their funds are available on a timely basis, even during vacation, illness, or business trips
  • Minimizes banking time for employees
  • Minimizes time spent on account reconciliation
  • Improves cash management and enhances forecasting of cash flow
  • Less expensive – ACH transactions cost less than paper transactions

Applications

  • Payroll
  • Pensions
  • Commissions
  • Dividends
  • Expense Payments
  • Benefits
  • IRAs
  • Annuities
  • Interest

Electronic Direct Payment

Electronic payments are payments which are received electronically when consumers authorize the corporation or the originating depository financial institution (ODFI) to debit their accounts on a routine basis.

Benefits

  • Improves receivables for businesses
  • Reduces second notices and collections work
  • Eliminates postage, envelopes and other administrative expenses
  • Lessens overtime during peak billing and remittance processing
  • Saves time by eliminating deposit tickets and trips to the bank to make deposits. Improves customer relations by providing them with a convenience– they do not have to sit down to write a check

Applications

  • Utility Payments
  • Loan Payments
  • Membership Dues
  • Rental Payments
  • Insurance Payments
  • Tuition Payments
  • Annual Fees
  • Medical Payments

Electronic Data Interchange (EDI)

Electronic Data Interchange (EDI) is the electronic movement of payments and payment-related information through the banking system. Businesses set up payments and information in standard formats and send them to other businesses through their financial institutions. Information about the payment is placed in an addendum record that accompanies the payment. For example, an addendum record may identify the business making the payment or an invoice number to identify the invoice that is being paid.

This application allows the collection and disbursement of funds and information between corporations or a corporation’s accounts using ACH. Electronic Data Interchange (EDI) transactions may be included in this application.

Benefits

  • Reduces postage and administrative costs because fewer checks are prepared and sent through the mail
  • Uses less check stock
  • Reduces time writing checks and reconciling accounts
  • Improves control of disbursements
  • Better cash management—no need to allow time for mailing payments

Applications

  • Vendor Payments
  • Invoice Payments
  • Royalty Payments
  • Loan Payments
  • Account and Book Transfers