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NACHA Payment Processing

Process payments via ACH using the NACHA (National Automated Clearing House Association) format

To be set up to process payments via ACH using the NACHA (National Automated Clearing House Association) format, a Tenant must work with their Bank first. The Tenant can then populate the Bank Information in Company Info.

Company Info page – Banking Information

Then following fields need to be populated in the Company Info Banking Information section:

  • Company Number. Populate this as directed by your bank with your IRS Federal Tax ID number or a unique number provided by the bank. The Company Name will default in from the Company Name Tenant’s Company Name and is truncated to ten characters.
  • Routing Number.
  • Displayed Company Name. This name may appear on the receivers’ statements prepared by the Receiving Financial Institution. It will at first default in from the Company Name Tenant’s Company Name and be truncated to sixteen characters but will allow editing.
  • Bank Name. This bank name is displayed after the Routing number is entered.
  • Company Entry Description. This is for the description of the Transaction and then is displayed on the receivers’ bank statement by the Receiving Financial Institution.
  • Header Reference Code. This is an optional field that is used to describe the input file for internal accounting purposes.
  • Batch Header Note. This is for a Company’s internal use as desired. It will populate the Company Discretionary Data field in the Batch Header Record of the NACHA file.

In addition to setting up the banking information in the Company Info page, the banking information for the Agents/Orgs must be set up in Agent Details for them to receive an ACH payment.

Agent Details – Payment Options

A final ACH file should only be created after running a Commission Cycle after all corrections have been done, applying Chargebacks, applying Adjustments, and doing all changes to allocations. To create the file, select ‘Create ACH’ located in the lower right corner of the Summary page next to Close. This can be done from an open Commission Cycle, or from a Closed Cycle.

In an open Commission Cycle the option to ‘Create ACH file’ is in the lower right corner of the Summary page:

In a Closed Commission Cycle the option to ‘Create ACH file’ is also located in the lower right corner of the Summary page:

Popup displayed after selecting Create ACH:

After selecting Continue a file will be downloaded and can be opened.

Sample NACHA ACH file:

The second column contains amount to be paid to the Agent and Agent ID. So, the Org ‘TesterTwo Insurance’ Agent ID AA1200 is being paid $1,112.69.

Additional information on ACH file creation

  • ACH fields can also be created from a Closed Commission Run, so a Tenant can choose to complete the cycle first and then can pay the Agents via ACH later.
  • If an Agent’s net is $0.00, they will not appear in the ACH file.
  • If a Tenant is not set up with Banking Information in Company Info, selecting Create ACH will present a warning, “BB1201 Brown Insurance Group is not set up with EFT” The Admin can then correct the Agent’s banking information, and select Create ACH again and have them included in the ACH file they will use. If the Agent is not to be paid via ACH, the Tenant will need to pay the Agent outside of the Commission System and can use the Non-ACH Report export to provide the information for those Agents.
  • Once the file is created, the Tenant’s person responsible for payments would upload the ACH file to their bank to finish the process of payments.
  • Some special characters may not be used for the Company name. Consult your bank for details.

 

  • While the NACHA format is a standard format, some banks may want different values for some fields. For example, for CHASE bank:
      • Populate the Company Number in the Bank Information in Company Information in Comissio with 0000000000. This will populate the Immediate origin and the Company Identification in Batch Header Record in the ACH File. 
      • Populate the 'Batch Header Note' in the Bank Information with according to their documentation: ‘Your Chase account number (Exactly 20 numbers using leading zeroes to fill in the gap – e.g. 00000000000123456789).' This will populate the Company discretionary data in the ACH File.
      • Populate PAYROLL in the 'Company Entry Description’ in the Bank Information which will populate the Company Entry Description in the Batch Header Record in the ACH File.