How do payments post?

iPay offers two payment models that financial institutions may choose from. The main difference for the financial institution is when payments are taken from the financial institution’s customer’s accounts.

• Managed Risk
  • ACH Payments are made to the Payee-Merchant same day as the customer’s account is debited. If the ACH overdrafts the customer’s account, the bank cannot cancel nor return the ACH payment; they must collect from their customer.
  • The bank has options to customize payment max/min for specific customers, i.e. VIP, new accounts, etc. if they choose to do so and resources to manage.
  • If Global Daily Payment max is set too low (usually under $10k), more items will be sent out as check versus ACH,(which looks to be the case here possibly).
  • Check Payments sent out when necessary are only by Consumer Draft and will clear back (debit the account) through the bank’s inclearings once the payee deposits the check from the People’s bill pay customer.  If NSF, the bank will need to return it with other Day 2 Exception NSFs to avoid a possible loss.
• Good Funds Model
  • All ACH and iPay Corporate Check (if selected by the bank) are prefunded.  If Consumer Draft Check, check is presented for clearing at later time.   
  • ACH Payments are prefunded by two business days prior before sending to the Payee-Merchant through customer’s account being debited via iPay payment files. If the ACH debit attempt overdrafts the customer’s account, or NSF, the bank may cancel the payment the next morning within the iPay MASTER Site Admin controls. Bill Pay customer is automatically notified of the cancelation via email on record.
  • Check Payments sent out when necessary are by (1) Consumer Draft will clear back (debit the account) through the bank’s inclearings once the payee deposits the check from the People’s bill pay customer.  If NSF, the bank will need to return it with other Day 2 Exception NSFs to avoid a possible loss or (2) via iPay Corporate Check that is prefunded and may be cancelled if insufficient funds.

Payments post in one of three different methods based on which model is chosen.  The method is not variable based on any type of algorithm, but is static based upon if a biller accepts ACH or Check payments.

• Automated Clearing House (ACH) – regardless of the model for ACH transactions, iPay will transmit an "On-Us" NACHA formatted file daily for each financial institution to process.
• iPay Check – an "On-Us" ACH transaction takes the money from the financial institution’s customer’s account and a check is written on a corporate iPay account which is used to pay the biller.
• Consumer Draft – a check is written by iPay that is payable on the financial institution’s customer’s account and payable to the biller. 

CSI Digital Banking customers have daily processing steps to make sure iPay bill pay transactions post:

• Banks are required to have a "Clearing" account for iPay bill pay processing.  This Clearing account can be held in G/L or DDA, whichever the financial institution prefers.
• iPay transmits a daily "On-Us" NACHA formatted file for each financial institution to process that includes individual debits to customer accounts for bill pay items and one lump sum credit to the designated Clearing account. 
• The following business day iPay will debit the Clearing account through typical ACH processing functions. 
• Due to the ACH models, iPay financial institutions have the option via the iPay Master Site to prevent a payment from being made from iPay to a biller for a specific customer due to NSF or closed accounts, etc…

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