1. Why so much paperwork and why require originals?
- By the ACH Network Guidelines we are required to collect this information and keep the originals of the signed documents on file.
2. Who is a Processor? Is it me, or is it my client that will use Direct Deposit?
- Processor is the company that does payroll and utilizes services of ACH guru (i.e. submits ACH files to ACH Guru). Processor may have one or several Direct Deposit Clients that use Direct Deposit service through the Processor. Processor may submit ACH files for itself or any other company that it has entered into agreement with and has a signed Direct Deposit Authorization. If you intend to use ACH guru's service yourself (i.e. access the website, submit ACH files for processing) then you will be a Processor and you will need to sign the Processor Agreement. Also, each company that uses Direct Deposit services through a Processor will need to have a signed Direct Deposit Authorization with the Processor. Processor shall submit all Direct Deposit Authorizations to ACH guru prior to transmission of any files on behalf of other Direct Deposit clients.
In a simple scenario, if you sign up to process Direct Deposit for your company only and you intend to submit ACH file to ACH guru website yourself, then you will be a Direct Deposit Client and a Processor at the same time.
3. How many Direct Deposit Clients a Processor might have?
- The number of the Direct Deposit Clients that a Processor can have is unlimited. For each Direct Deposit client a Payroll Processor must submit original signed ACH Application, Company Authorization and a voided check from that Client.
4. I have provided banking information for all Direct Deposit clients, will the money be debited from their bank accounts or from mine?
- The money will be electronically debited (withdrawn) from the account of a Direct Deposit client and credited (deposited)
directly to employees' accounts of the Direct Deposit client.
5. Why do I need to provide banking information and voided check for my company (Payroll Processor)?
- As we mentioned above, the Direct Deposit money will be tranferred directly from Direct Deposit client's account into employees' accounts. To do that we don't need Processor's banking information. However, at the end of the month, we will have to bill the Processor and automatically debit Processor's account for the number of transactions and the monthly service fees for that month.
That is why we require the banking information from the Processor.
6. Why do you need financial statements from our company (Processor)?
- According to the ACH Network Guidelines and Federal regulations we have to make sure that we provide services to legitimate businesses, therefore we require you to provide evidence of business registration. Financial statements is proof that your company is in good financial standing to utilize services of ACH network.
7. Why do you need specific information about business and it's principles?
- According to the FFIEC's Bank Security Act/Anti Money Laundering Act and in compliance with the US Treasury's Office of Foreign Asset Control we are required to obtain this information. Additional information on this subject is provided in "Foreign Asset Control Regulations for the Financial Community" which is available on OFAC's website www.treas.gov/ofac. More information can be found here: http://www.ustreas.gov/offices/enforcement/ofac/civpen/ofac_sec_frb.pdf