Direct Deposit Distribution –
Processor / Client Online Guide


 

This Direct Deposit Processor / Client Online Guide provides Processors with all of the information needed to get up and running with NatPay's Direct Deposit Distribution services quickly and easily.

In this guide, you will find Direct Deposit features, pricing and timing options, as well as step-by-step setup instructions, helpful hints, and all of the documents that you will need to complete the setup process.

 

 

    Email Transmission Reports

    Confirmations of processed payroll files sent to you at any email address on the day of transmission.

    Any time a payroll file is sent to our processing center or a modification to your payroll file is made, an email or fax notification is sent to your authorized company contact. This allows you to monitor any unauthorized activity that may occur on your National Payment account.

    Web Direct Deposit

    Web-based payroll processing that allows you to access client files while in the field, or process payrolls from remote locations.

    Logout Feature

    When you complete your file uploads and logout of our systems, your session is protected from unauthorized users changing any aspect of your upload without logging into our systems again. Should you forget to log out completely, your session will automatically time out after a brief period of time and log out of the session – which protects your files and information.

    Multiple Timing & Funding Options

    NatPay's offers several timing and funding options to meet the needs of you and your clients. Contact NatPay today for details.

    Marketing Support

    Tools are available upon request to help increase direct deposit participation.

    Payday Text Alerts

    FREE electronic EZPaynote pay notifications for employees with options for email or cell phone delivery. This exclusive service greatly reduces HR headaches and provides a service that is not offered anywhere else!

    Multiple Server Support & Firewall Protection for Your Payroll Files

    Our payroll processing servers and web servers are separate server systems. Both are protected by several firewall safeguards. Our processing servers are multi-server supported for enhanced customer support that no other company matches. Off-site contingency servers guarantee that your files will be processed on time and without fail should a disaster occur.

    Secured Servers – Verified by GeoTrust

    By using SSL certificates that enable 256-bit encryption from GeoTrust, we provide our identity in electronic transactions much like a driver license or a passport does in face to face interactions. SSL certificates use public key encryption techniques to protect against unauthorized use.

     

 

NatPay offers competitive Direct Deposit pricing, and unmatched services that are perfect for your organization.

Our fees structure is straight forward, and easy to understand.

To find out the special per-item rates available for your organization, and to obtain a custom proposal, please contact NatPay either by phone at 800-284-0113, or online:

 

 

Hints for Setting Up ACH Clients Easily with NatPay

 

    Introduction

    The biggest obstacle with getting your customers up and running with NatPay is making sure that the information that you provide about them to NatPay contains all of the specific information required by the government’s “Know Your Customer” regulations, and matches the official information that the government has on record.

    This ACH Primer provides several hints for making the setup process quick and easy.

    Hint 1 – Make Your Customer Records Compliant Before Setup

    Before submitting your customer information to NatPay, update your current client records to include all of the information required by the “Know Your Customer” regulations. This information should match what the government has on file to speed along the underwriting/setup of your customers. Otherwise the process will be delayed while this information is located and verified.

    The matching information that needs to be provided NatPay for each of your clients is as follows:

    • Legal Company Name / DBA
    • Company Street Address
    • Company City
    • Company State
    • Company Zip
    • Company Tax Identification Number (TIN) or (EIN)
    • Company Phone

     

    To obtain this information, follow the steps below:

    1. Visit the state website where your customer’s business is registered. Use the following website link to find a complete list of state websites: http://www.bpl.org/research/kbb/websites/statecorps.htm

    2. Once you get to the state website, find a link that does a business search.

    3. Search and locate the customer whose information you are making compliant.

    4. Update your records with the information found on the website.

    Hint 2 – Verify Your Customer’s Type of Business and the Services That They Provide

    It is very important to know each of your customer’s type of business and the services that they render. NACHA rules clearly dictate that certain types of businesses are not allowed to transact on the ACH network. The following types of businesses and services are forbidden:

    • Adult entertainment

    • Gambling

    • Get rich quick membership fees

    • Telemarketing

    • Internet sales if it is unclear what is being sold

    • A good or service represented to remove derogatory information from, or improve, a person's credit history, credit record, or credit rating

    • A loan or other extension of credit, such as a credit card or secured credit card, where the seller or marketer of such goods or services claims a high likelihood of success in obtaining or arranging a loan or other extension of credit for a person, or where a fee or other consideration is requested or received

    • A good or service that is represented to eliminate or reduce the incidence of telemarketer calls

    • An offer to recover or otherwise assist in the return of money or other property that has been or may in the future be lost to fraud

    • Membership clubs or similar plan or program offering consumers discounts on any goods or services in whole or in part over the telephone

    • Any good or service represented to prevent, discourage or lessen the likelihood of a consumer having his or her identity used for any unlawful or unauthorized purpose, unless such good or service is offered or sold by the consumer's own financial institution

    • Any offer to assist a person in obtaining a grant or loan from a public or non-public source

    If any of your clients fall into the above categories, they will not be allowed to transact on the ACH network.

    Hint 3 – Provide a Valid Website Address for Each Customer

    To aid the underwriting process for each processor’s clients, and speed along setup tremendously, include a company website for each of your customers when submitting your customer information to NatPay.

    Hint 4 – Provide Correct Client Phone Numbers

    Most payroll processors may just have a cell phone number on file for their customer simply because they are primarily interested in being able to reach someone of authority when there is an issue. Unfortunately, the phone number you give to NatPay must match the official government phone number associated with a business Tax Identification Number (EIN or TIN). In most cases, if the phone number is a mobile phone, the account is immediately disqualified.

    If the mobile number you have matches the number found in the government information, an exception may be made. In other words, if the business is a store or restaurant, a cell phone as a business phone is not generally accepted. But if the business is of the type that does not have a storefront, an exception to the cell phone rule is much more likely. In all cases, an exception is granted if a bill is provided that shows the mobile phone number as registered in the business name.

    Hint 5 – Setup Clients in Bulk With Properly-Filled Spreadsheets

    In most cases, NatPay will accept an Excel spreadsheet of initial customer account information to setup multiple clients at once quickly and easily. NatPay provides a spreadsheet template that may be used right away.  Please note though, that if you change the column or cell order of the spreadsheet template from what we provide, it will slow the process of underwriting your customers and getting them setup with NatPay.

    It is important to understand that when a spreadsheet field, such as zip code, is left blank, NatPay is unable to underwrite your customer’s account even if every other bit of information is perfect. Nothing should be omitted and left blank in the spreadsheet. If NatPay receives a spreadsheet from a payroll processor that has a large number of incomplete or inaccurate records, NatPay is suppose to require that the customer information then be received in written form. In short, this means that an individual application for each of your customers would then have to be filled out and submitted. If the spreadsheet with your customer information is accurate and complete, then NatPay will send you a completed 1-page document for each account that just requires review and a signature.

    Hint 6 – Navigating Blank, Voided, Check Requirements

    The underwriting process for new payroll processors and their clients involves a rule that a blank, voided check is required for each of your customers. This blank check must be from the account that your customer will use to fund their payroll, and is required when processors are adding new-customer accounts.

    If you are setting up current, multiple customers at once, request that NatPay waive the blank check requirements. This is particularly valuable for payroll processors converting to NatPay from another ACH processor. Please note that you have to request this underwriting waiver, and that NatPay’s underwriting department will never suggest this to a new customer.

    Hint 7 – Complying With Proof of TIN/EIN Regulations via 941 Forms and Tax Returns

    Federal rules require that NatPay receive proof of TIN/EIN for each of your customers. These rules state that this proof must be in the form of a government document that shows the company name and the TIN/EIN for that company.

    NatPay cannot except screen prints from the IRS web site, hand-written documents, etc. which may be a major problem for some payroll processors. But there is a little known loophole in this compliance requirement. NatPay is able to accept a 941 document or tax return that is signed by a third-party preparer. Processors may not have access to customer tax returns, but their accounting system may be able to print/create official 941 documents, even if they are submitted electronically. All processors have to do is print/create one for each customer, and sign them. This is a lot easier than trying to collect an SS4 for each customer.

    Click here for more information on the types of documents NatPay will accept for proof of TIN.

    Conclusion

    For those payroll processors who make sure that their customer information is provided to NatPay accurately, new accounts can be added in a matter of days. Unfortunately, for those same processors whose customer records are not a match with official government information, the process of getting one of your customers onto the ACH network can take forever, or worse, their account will be turned down.

    For further information about ACH / NACHA rules and regulations, please consult NatPay’s ACH Rules & Regulations White Paper. This document discusses the increased security, rules, and regulations now applicable for all those using the nation’s ACH network. It also provides detailed information on how to navigate through the compliance “mine field” now present, and how ACH processors can protect themselves and their clients.

     

 

    Step 1: Gather Important Documentation

    Before you begin to fill out a Processor or Client agreement for Direct Deposit Distribution services, please click on the ACH Primer tab above for helpful tips on gathering the CRITICAL pieces of documentation needed when submitting a Processor Agreement or a Client Authorization Form to NatPay.

    The critical information that needs to be provided to NatPay for you and your clients is as follows:

    • Legal Company Name
    • Company Street Address
    • Company City
    • Company State
    • Company Zip
    • Company Phone
    • Company Website
    • Voided Blank Check
    • DBA Documentation
    • Proof of Company Tax ID Number (TIN) or (EIN)
      Click here for proof requirements.

    For more information pertaining to the documentation requirements discussed above, please consult NatPay's ACH Rules & Regulations White Paper.

    Step 2: Fill out a Direct Deposit Processor Agreement

    Processors who have multiple clients need to fill out a Processor Agreement in order to offer Direct Deposit Distribution services to each of their clients.

    Start by filling out the Processor Agreement PDF provided to you by NatPay. If you do not yet have this PDF, please contact NatPay to obtain it.

    You will need Adobe's free Acrobat Reader software to view the Processor Agreement. The easiest way to fill out the agreement is by typing your information into each of the PDF form fields, and then saving a copy of the PDF to submit to NatPay via email.

    You may also print the PDF and fill it out by hand, and then fax or email a scanned copy to NatPay.

    Fill out each section completely by following the instructions shown in each section. Be sure to initial each page as well.

    So that NatPay may complete the proper background checks on Processors in a timely manner, it is CRITICAL that the following information be represented as follows:

    In Section 1 of the Processor Agreement:

    Legal Business Name: This MUST be the official legal business name of the Processor.

    Address: The company address (line 1) MUST be the physical address of the Processor. Line 2 may be used for the mailing address of the processor.

    Phone Number: The company phone number MUST be the company's land line phone number. Cell phone numbers are NOT acceptable UNLESS the cell phone number is listed as the official business phone number on all legal documents.

    In Section 2 of the Processor Agreement:

    Management Contact Name: This MUST be the company owner or president's legal name.

    Step 3: Fill out a Federal and State Tax Liabilities Agreement (if applicable)

    If a Processor will be processing tax payments, then a Federal and State Tax Liabilities Agreement MUST also be completed as well. If a Processor will NOT be processing tax payments, continue to Step 4.

    In Section 1 of the Tax Liabilities Agreement:

    Legal Business Name: This MUST be the official legal business name of the Processor.

    Address: The company address (line 1) MUST be the physical address of the Processor. Line 2 may be used for the mailing address of the processor.

    Phone Number: The company phone number MUST be the company's land line phone number. Cell phone numbers are NOT acceptable UNLESS the cell phone number is listed as the official business phone number on all legal documents.

    Step 4: Fill Out a Funding Guaranty Agreement

    Due to the nature of some of the funding options that NatPay offers, a Funding Guaranty may be required for each Processor. Please contact NatPay to see if this is required for your particular funding options.

    Step 5: Submit Processor Agreement(s)

    Now that you have completed a Processor Agreement, and have gathered all required information as requested in step one, submit all of your documents via email or fax as specified on the first and last pages of the agreement.

    If a Processor has also completed a Tax Liabilities Agreement, then that will need to be submitted as well per the instructions shown at the end of the Agreement.

    If applicable, a completed Funding Guaranty also needs to be submitted along with each Processor Agreement.

    Step 6: Fill out Client Authorization Form(s)

    Once the Processor Agreement has been approved and verified, the Processor may now begin to fill out a Client Authorization Form for each of their clients who will be using Direct Deposit Distribution services.

    You may either complete a Client Authorization Form by filling out the PDF just like you did the Processor Agreement PDF, or you may choose to use our Client Spreadsheet document to fill out multiple Client Authorization Forms quickly.

    So that NatPay may complete the proper background checks on Processor Clients in a timely manner, it is CRITICAL that the following information be represented as follows in the Client Spreadsheet or Client Agreement PDF:

    In the Company Information Section of the Client Authorization Form or Spreadsheet:

    Legal Business Name: This MUST be the official legal business name of the Client.

    Address Line 1: The company address (line 1) MUST be the physical address of the Client. Line 2 may be used for the mailing address of the Client.

    Main Phone Number: The main phone number MUST be the company's land line phone number. Cell phone numbers are NOT acceptable UNLESS the cell phone number is listed as the official business phone number on all legal documents.

    Contact Name: This MUST be the company owner or president's legal name.

    Step 7: Submit Client Authorization Form(s) & Other Agreements

    Submissions for Individual Clients

    Now that you have completed a Client Form, and have gathered all required information as requested in step one, submit your documents as specified in the Agreement.

    Submitting Client Spreadsheet Documents

    If you chose to use the Client Spreadsheet option, please submit it as an email attachment to: [email protected]

    All Funding Guaranty Agreements should also be submitted by email to this same email address.

    After submitting Client Spreadsheets to NatPay, allow 1-2 days for Client Authorization Forms to be verified, and a condensed 1-page Client Authorization Form document to be created for each Client listed in the spreadsheet.

    NatPay then sends all of the individual Client Authorization Forms to the Processor to obtain the Client's signature on each Client Authorization Form, and also obtain the proof of TIN for each Client as well. (Please note that the voided blank check (non-starter) is not required when Processors are using the Client Spreadsheet option for EXISTING clients even though it is desired if it is available. The voided blank check is required for all NEW clients.)

    The Processor then sends all of the of the signed Client Authorization Forms, voided checks (if available), and proof of each Client's TIN back to NatPay to complete each Client's Direct Deposit sign-up process.

 

Important Software

All PDF documents on this page require Adobe Acrobat Reader to be viewed.

You might also need Microsoft Excel or a compatible spreadsheet program installed on your pc.

ACH Rules & Regulations

NatPay's latest ACH Rules & Regulations White Paper discusses the increased security, rules, and regulations now applicable for all those using the nation’s ACH network.

It also provides detailed information on how to navigate through the compliance “mine field” now present, and how ACH processors can protect themselves and their clients.

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