ACH Payments via Customer's Bank



For customers interested in making ACH payments directly through their bank, MineralTree is able to generate ACH credit files (NACHA files) and transmit them daily to the customer's bank via an SFTP file transmission.  The customer's bank then issues these ACH transactions automatically.  

This is identical to an ACH credit initiated through an online banking portal, but without extra work by the customer.  ACH payments are approved together with check payments through the MineralTree interface and the rest is taken care of automatically by the MineralTree system.  


ACH File testing

Customers connect a MineralTree Support representative with their bank relationship manager.  The bank relationship manager works with their ACH / implementation team to set up an SFTP file transmission.  The bank fills out a short questionnaire regarding SFTP information and any file formatting preferences.  Testing is conducted on the SFTP connection and file format between MineralTree and the bank.  Once the connectivity and file format are approved, the setup is moved to production and the customer can go live with ACH payments.  The first live payment is monitored by MineralTree and the bank to ensure that everything is set up properly.

Setup Time

The testing process typically takes 2-4 weeks.  The MineralTree setup is quick -- as long as the bank can provide the necessary info and move forward, setup will move quickly.  There can be some delays if the bank has more specific file format requirements, but NACHA format is largely standard between banks.  Most banks need a few days between moving from the test phase to a live setup.  

Frequently Asked Questions

How do I know if my bank supports this?

This method is supported with any bank that can receive NACHA files via SFTP.  This should cover 99% of banks in the US.

How does this improve on my current process?

-- If you are submitting ACH payments through your bank's online banking portal today, you are likely entering the bank account and routing number information anew every time.  MineralTree will save the bank information you enter for each vendor.

-- Setting up the file transmission allows all of your payments (check and ACH) to be submitted and approved solely in MineralTree, instead of on separate websites.  Payments are processed automatically with your bank and payment information is automatically synced to your general ledger through our connection with your accounting system.  

Will my bank charge fees for this?  How much are the fees?

Banks typically charge a setup fee, a per transaction fee, and a file fee for each file transmitted. Fees will vary depending on the bank and the account.

When my setup is live, what will the daily cutoff time be for submitting ACH payments?

MineralTree conforms to each bank's daily cutoff time.  Most banks need ACH files delivered by ~ 7 PM Eastern time, though many have earlier cutoffs.  The specific cutoff for a new transmission setup is determined during testing.

When my setup is live, how long do my ACH payments take to process?

The payment settlement time is the same as a standard ACH credit -- 1-2 business days.

How will this look on my bank statement?  

Each individual transaction will be recorded as a separate line on your bank statement.  The transactions will include the payee's name and amount.  The payee's bank statement will show the payer's name and the amount.


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