iClassPro includes, at no additional cost, a NACHA File Generation feature. You can use iClassPro’s NACHA file generation feature to process ACH transactions for a group of your clients in the same location. ACH using NACHA is not available as an option when a customer is submitting online payment, as these files for processing must be created by a staff member.
The Automated Clearing House (ACH) Network is a processing and delivery system that provides for the distribution and settlement of electronic credits and debits among a large number of financial institutions. Generally speaking, this network is not used outside of the United States- due to different banking and security standards, most other countries will be restricted to credit card transactions online.
The NACHA file feature works similar to auto-payments feature. A NACHA file is a universal file format that a bank of your choice can process. Normally, your bank's processing fee is cheaper than a merchant/Payment Gateway account making this a feature that can save you money. In order to process an ACH transaction for someone, you must first have their written approval (or their Billing Authorization acceptance in the Parent Portal). Then, your client can save their routing number and account number on file with you through the parent portal, or you can enter the information on the family page in the application. Information saved and entered in iClassPro is very secure in our database, and all information sent over the internet with iClassPro is protected using 256-bit SSL encryption.
To participate and initiate an ACH transfer, you will need to do the following:
1. Contact your bank about their NACHA service. Be sure to let them know that your software will provide you with a NACHA file.
2. Setup iClassPro’s NACHA file generation settings. Your bank can provide you with all the information you need to enter in iClassPro.
Follow the steps below to find the settings you will need to obtain from your bank:
1. Login as Administrator
2. Go to ‘Settings’
3. Go to the ‘Transaction’ Section
4. Click the 'Configure ACH' button.
5. Enter the information that you obtained from your bank. (Below are some additional helpful tips about these fields.)
a. The Enable NACHA box allows your customers to save NACHA information on file.
b. Select a Transaction file type- PPD is the standard.
c. Most banks require you to Generate Entry Tracing Numbers.
d. The Immediate Origin Name is your company name as it appears on the statement.
e. The Immediate Origin Number can be either your Bank Account Number or your Tax ID (Consult your bank for a definite answer)
f. The NACHA Immediate Destination Name is your bank's name.
g. The NACHA Immediate Destination Number is your 9 digit routing number as seen on your bank checks.
h. Most banks do require the Create Off-Setting Entry option where you will enter your company's bank routing and account number again.
i. Consult your bank for a definite answer on any additional fields.
6. Obtain approval from your customers before initiating any transactions via NACHA.
How it works (ACH):
Upon your customer’s written approval, you will enter your customer’s account number and routing number into iClassPro.
At the first of the month or session, you will go to the “Transactions” icon and choose “Payments”.
When it asks, “Select an Auto Payment Task”, make sure to select “Generate NACHA file.”
iClassPro will display a list of customers that meet the following criteria.
1. The customer must have an account balance greater than zero.
2. Family must have enabled auto pay and entered routing and bank account information into the family details “Payment Options” section.
iClassPro will automatically enter ACH payments for all of your customer's ledgers and create a universal NACHA file that you can download and deliver to your bank. Most banks provide specific instructions for delivering a NACHA file by internet. Typically a bank can process your NACHA file and deposit funds into your bank account the next business day.
If you have any questions about iClassPro’s NACHA file generation, please contact support.