Becoming an ODFI
What does it take to become an ODFI and why should your financial institution become one? Together, we’ll work from the ground up, discussing the steps to take to become a sending point for ACH originations, benefits of being an ODFI, ACH Policy considerations and the infrastructure needed to make this transformation.
ODFI Role, Warranties & Agreement
Per the ACH Rules, ODFIs have the most liability and risk of any of the ACH participants. Together we’ll review the ODFI’s role, responsibilities, warranties and how to reduce liabilities or risk through building a sound ACH Agreement to act as a binding contract between the ODFI and its Originators.
Due Diligence on ACH Originators & Annual Reviews
After becoming an ODFI, how does a financial institution assess its onboarding clients to allow them to become ACH Originators? Together, we’ll discuss how to perform due diligence reviews during the onboarding process of potential ACH Originators before they submit entries. We’ll also cover how to review ongoing activity and perform annual reviews after the client officially becomes an ACH Originator.
Maximizing ACH Products and SEC Codes
SEC codes are intended for specific use cases based on the participant type (consumer or business) and how the payment was initiated. Let’s discuss which SEC codes could satisfy your ACH Originators’ needs along with other ACH products that your institution could offer such as EDI reporting, Same Day ACH and B2B.
Managing Originator Risk
ODFIs and Originators are targets of various types of fraud, ranging from account takeover, vendor and employee impersonation, and many other schemes. Together we’ll discuss how to mitigate different types of risk to not only reduce the incidence of a loss event but also to forge a stronger bond between the ODFI and its ACH Originators
ODFI Problem Solving
Whether you have one Originator or dozens, troubleshooting forgotten files, return issues and reversals is a given! Together we’ll come up with methods to enhance your procedures to maximize the customer service experience given to your account holders.
Special ACH Originator Set-Ups
ACH Originators come in different shapes and sizes, and many have unique business circumstances. Some may even have different ACH Rules obligations (i.e. Third-Party Senders). Let’s discuss Originators who need Same Day ACH or Direct Access services, utilize a Third-Party Service Provider to create payments or use Third-Party Senders to send payments on their behalf.
ACH File Format Troubleshooting
At first, ACH files appear to have a complicated format, but once you see the rhythm of each file, batch, or string of entries, you’ll be able to maximize your assistance to ACH Originators. In this session, we’ll not only walk through the elements of an ACH file, but we’ll demonstrate errors seen on ACH files that cause uploading errors for Originators.
Marketing Your Products + Q & A
Now that you understand how to become and ODFI and operate as such, how do you market your ACH products to grow your portfolio of potential ACH Originators and then retain them as your account holders? This your time to discuss next steps and ask additional questions.