ACH Processing

The ACH section of Braid allows financial institutions to manage electronic funds transfers efficiently, handle compliance requirements (including OFAC screening), and ensure secure transaction processing. This guide covers ACH processing, error handling, compliance checks, and timing considerations within Braid.

Accessing ACH 

• From the Braid Dashboard, navigate to the ACH section in the left-side menu.

• The ACH section contains three tabs:

• Processing

• Transaction Status (covered in a separate guide)

• File Errors

ACH Processing

Uploading ACH Files

• The Processing tab is where users upload ACH files for transaction processing.

• To upload an ACH file:

  • Receiving: For incoming credits/debits to the financial institution.

  • Originating: For outgoing transactions initiated by the institution or its clients.

1. Select the File Type – choose either:

2. Click the Choose File button to browse and select the ACH file from your computer.

3. Click Upload ACH file to initiate the upload process.

• Once uploaded, transactions undergo compliance checks, including OFAC screening.

ACH Workflow

• ACH transactions pass through various stages during processing:

• INITIATED: Transaction is created but not yet submitted.

• SUBMITTED: Transaction is prepared and added to a settlement batch.

• SENT: Transaction has been submitted to the ACH operator.

• MANUAL_REVIEW: Transaction is under compliance review by the financial institution.

• RETURNED: Transaction was returned by the RDFI due to issues like insufficient funds or unauthorized debit.

• CANCELED: Transaction was canceled before submission.

• REJECTED: Transaction was rejected due to incorrect or incomplete data.

Enhanced ACH Processing Status

OFAC Screening

• Each transaction undergoes real-time OFAC screening to ensure compliance with federal regulations.

• Transactions that match OFAC watchlists are flagged for manual review, enabling users to address potential compliance issues.

Handling File Errors

Error Identification

• The File Errors tab helps identify issues within uploaded ACH files, such as:

• Incorrect file format

• Missing mandatory fields

• Data inconsistencies

Correcting and Resubmitting Files

• Download the error log for more information.

• Make necessary corrections in the ACH file.

• Re-upload the corrected file via the Processing tab to resume processing.

Timing and Settlement

ACH Submission Windows

• ACH submissions are processed in multiple daily windows. Understanding cut-off times for same-day vs. standard ACH is crucial for timely fund transfers.

• Specify SAME_DAY or STANDARD options in the ACH endpoints.

Same-Day ACH

• Must be submitted before the midday cut-off to settle within the same business day.

• Offers faster settlement for urgent transactions but requires adherence to strict submission windows.

Standard ACH

• Transactions settle on the next business day if submitted after the same-day window or processed under the standard schedule.

Processing Windows and Cut-Off Times

• The Federal Reserve Bank publishes the ACH processing schedule.

• Your bank typically sets an internal cut-off time before the operator’s cut-off to ensure processing.

• Contact your bank for details about the settlement schedule and cut-off times specific to your program.

Compliance

• Braid ensures compliance by performing OFAC screening at three stages:

1. At file upload

2. During transaction processing

3. Daily screening for ongoing compliance.

• Flagged transactions undergo manual review to maintain compliance and security in ACH operations.

Best Practices for ACH Processing

• Upload files in batches for faster processing and easier error management.

• Regularly monitor flagged transactions to maintain compliance and operational flow.

• Be aware of cut-off times to ensure transactions are submitted on time for desired settlement windows.

Transaction Status

The Transaction Status page in Braid's ACH Processing Dashboard provides users with a comprehensive view of the status of outbound ACH files and their contained transactions. This screen is solely for monitoring purposes, allowing users to understand the state of each file without making changes or approvals.

Understanding the Transaction Status Page

The Transaction Status page displays a table with the following columns, giving an overview of the processing outcomes for each outbound ACH file:

Table Columns

• File Name: A unique identifier for each outbound ACH file (e.g., outbound73047875021329467).
• Processing Date: The date when the ACH file was processed by Braid’s system.
• Error Transactions: The number of transactions within the file that encountered errors.
• Pending Transactions: Transactions that are pending further processing or confirmation.
• Offset Transactions: Transactions included to balance debits and credits within the batch.
• Posted Transactions: Transactions that have been successfully posted to the receiving bank or account.
• Rejected Transactions: Transactions that failed to meet processing criteria and were not accepted.
• Manual Review Transactions: Transactions that were flagged for manual review but are not managed here.
• Duplicate Transactions: Transactions identified as duplicates and excluded from final processing.
• Total Transactions: The overall count of transactions in the ACH file.

Using the Interface

• Filters: Use the Filters button to refine the list based on parameters like processing date, file name, or transaction status.
• Columns: The Columns button allows you to customize which columns are displayed.
• Search: Use the search bar to quickly locate a specific ACH file by entering keywords or dates.
• Density: Adjust the Density settings to change the visual presentation of the table (e.g., Compact, Normal, or Comfortable).

Monitoring Transaction Status

The Transaction Status screen is designed to help users monitor the status of ACH files and the transactions within them, allowing for quick identification of issues:

• Error Transactions: Monitor this column to identify files with processing errors.
• Rejected Transactions: Review the count to understand how many transactions were not accepted and may need further attention elsewhere.
• Pending Transactions: Indicates transactions that are still in progress and awaiting completion.
• Manual Review Transactions: This column shows the count of transactions flagged for manual review, but any further review actions are handled outside of this screen.

Exporting Data

If export functionality is enabled, users can export transaction data for specific files. This feature facilitates external reporting and compliance audits.

Tips for Effective Use

• Regularly check the Error Transactions and Rejected Transactions columns to ensure all issues are being identified promptly.
• Use the Filters and Search functions to easily locate specific files, especially when dealing with a high volume of transactions.
• Adjust the Density settings based on your viewing preferences for easier analysis.

Braid's Connectivity Models for ACH Processing

Braid supports three connectivity models to facilitate ACH processing, offering flexibility based on your institution's technical infrastructure and compliance requirements:

1. Fedline Advantage

   • Overview: Fedline Advantage is a secure, web-based access point for financial institutions to interact with the Federal Reserve’s payment services. Braid integrates seamlessly with Fedline Advantage, providing a direct and reliable channel for processing ACH transactions.
   • Features: Supports manual initiation and batch file uploads, offering a user-friendly interface for smaller institutions looking to maintain compliance with standard security protocols.

2. Fedline Command

   • Overview: Fedline Command allows for automated interactions with the Federal Reserve's payment systems, enabling batch file transfers through command-line execution. Braid’s ACH system can leverage this model to automate and streamline transaction flows, reducing manual intervention and increasing efficiency.
   • Features: Provides advanced scripting capabilities, automating the initiation, monitoring, and retrieval of transaction files.

3. Fedline Direct (Coming Soon)

   • Overview: Fedline Direct is an advanced, server-to-server communication channel that facilitates high-volume transaction processing. Braid’s upcoming integration with Fedline Direct will enhance scalability and processing speed for larger institutions handling substantial transaction volumes.
   • Features: It will offer real-time file transfers, enhanced security measures, and faster processing times, positioning it as the ideal choice for institutions aiming for high throughput and reduced processing latency.