ACH Originator Guide

ACH Originator Quick Guide

  • An ACH Originator is any entity or person that creates an ACH transaction.
  • ACH entries are categorized as “consumer-PPD” or “corporate-CCD.”
  • ACH is capable of crediting or debiting checking or savings accounts.
  • ACH entries are received by all financial institutions.
  • ACH is a batch system (not real time).
  • ACH entries are irrevocable once they have been sent for processing.

ACH Legal Framework:

You are required to abide by multiple rules and agreements including, but not limited to, the following when initiating ACH transactions:

  • Nacha Operating Rules (www.nachaoperatingrulesonline.org)
  • Regulation E (for consumer entries)
  • UCC4 (for corporate credits)
  • Authorizations from employees and/or customers
  • Bank and Corporate agreements

Your Responsibilities as an Originator:

  • Obtain proper authorizations and retain authorizations for two years past revocation.  Please see ACH Authorization Requirements for more information.
  • Submit files for processing on the proper date with the correct effective date.
    • For eBiz customers
      Traditional ACH (future effective date): Picked up and processed at 9:00 am MST, 1:30 pm  MST, 3:00 pm MST, and 5:00pm MST for next business day settlement.
      Same Day ACH (same day effective date): Picked up and processed at 9:00 am MST and 1:30 pm MST for same day settlement.
    • For Small Business customers
      Traditional ACH (future effective date): Picked up and processed at 4:30 pm MST
      Same Day ACH (same day effective date): Picked up and processed at 12:30 pm MST
  • Give appropriate notice to receiver if changing amount or date of pre-arranged payment.
    • Seven (7) calendar days notice for a change in date (consumer and corporate).
    • Ten (10) calendar days notice for a change in the amount (consumer).
  • Cease subsequent entries when notified.  Please see ACH Return Guide for more information.
  • Make necessary changes to payee account information within six (6) banking days upon receipt of a Notification of Change (NOC) or before another entry is submitted.  Stockman Bank will notify you of any NOCs received on your behalf via secure email.  Please see NOC Guide for more information.
  • Must conduct commercially reasonable fraud detection on its use of Mirco-Entries, including monitoring of return volumes of Mirco-Entries.