ACH & Wire Transfer Guide: Setup, Processing & Best Practices

ACH origination and wire transfers are the two primary electronic payment methods available on OldNational. This guide provides detailed information about each method, including setup, processing, file formats, and best practices.

Table of Contents

1. ACH vs. Wire: Which to Use?
2. ACH Origination Setup
3. Understanding SEC Codes
4. ACH Processing Steps
5. Wire Transfer Setup
6. Wire Processing Steps
7. Cut-Off Times
8. Troubleshooting

ACH vs. Wire: Which to Use?

Characteristic	ACH	Wire Transfer
Speed	1-2 business days (same-day ACH available)	Same business day
Cost	Lower per-transaction cost	Higher per-transaction cost
Best For	Payroll, vendor payments, recurring payments	High-value, time-sensitive payments
Reversibility	Reversible within specific timeframes	Very difficult to reverse
Volume	Supports batch processing (hundreds of payments)	Typically one payment at a time
International	US only	USD international available

ACH Origination Setup

Before processing ACH payments, your company must complete enrollment:

1. Enroll in ACH Origination: Contact Treasury Management support through the official bank website.
2. Underwrite: The bank will review your application and assign ACH limits based on creditworthiness.
3. Configure accounts: Specify which accounts will be debited for ACH payments.
4. Set up users: Administrators assign ACH creation and approval permissions to users.
5. Configure dual control: Require separate users for creation and approval (recommended).
6. Import payees: Use Import Maintenance to upload payee lists in bulk, or add payees individually.
7. Create templates: Build templates for recurring payments (e.g., weekly payroll).

Understanding SEC Codes

SEC (Standard Entry Class) codes define the type of ACH payment. Choosing the correct code is essential for compliance:

SEC Code	Name	Use Case
PPD	Prearranged Payment & Deposit	Direct deposit payroll, bill payments from consumers
CCD	Corporate Credit or Debit	B2B payments between companies
CCD+	CCD with Addenda	Corporate payments with remittance information
CTX	Corporate Trade Exchange	B2B payments with extensive remittance data (up to 9,999 addenda)
WEB	Internet-Initiated	Consumer payments authorized via the internet
TEL	Telephone-Initiated	Consumer payments authorized via telephone
RCK	Re-presented Check	Re-present a returned check electronically

ACH Processing Steps

1. Select template or create new: Choose a pre-configured template or build a new payment from scratch.
2. Select funding account: Choose the account to debit.
3. Add payees: Select from existing payees or create new ones (requires admin approval if configured).
4. Enter amounts: Specify payment amount for each payee.
5. Set effective date: Choose the date funds should be transferred. For same-day ACH, submit before the same-day cut-off.
6. Select SEC code: Choose the appropriate SEC code for the payment type.
7. Add addenda (if needed): Include remittance information for CCD+ or CTX payments.
8. Review and submit: Verify all details and submit for approval.
9. Approval: An authorized approver reviews and approves the file (if dual control is enabled).
10. Processing: The bank processes the file and funds are transferred on the effective date.

Wire Transfer Setup

Wire transfer enrollment requirements:

1. Enroll in wire services: Coordinate with Treasury Management support.
2. Configure wire limits: Set per-user and per-transaction dollar limits.
3. Set up wire payees: Create beneficiaries with their banking details (account number, receiving bank, routing number or SWIFT code).
4. Enable dual control: Require separate users for creation and approval (strongly recommended for wires).
5. Configure alerts: Set up wire confirmation alerts via email or SMS.

Wire Processing Steps

Domestic Wire

1. Navigate to Wire section under Payments.
2. Select Domestic Wire.
3. Choose funding account.
4. Enter beneficiary name, address, and account number.
5. Enter receiving bank name and routing number (9 digits).
6. Specify wire amount.
7. Add optional reference/memo information.
8. Review details carefully.
9. Submit for approval if dual control is required.

International Wire (USD)

1. Navigate to Wire section under Payments.
2. Select International Wire (USD).
3. Choose funding account.
4. Enter beneficiary name, address, and account number (IBAN for some countries).
5. Enter receiving bank name and SWIFT/BIC code (8 or 11 characters).
6. Enter intermediary bank information if required.
7. Specify wire amount in USD.
8. Add bank-to-bank instructions if needed.
9. Review and submit for approval.

Cut-Off Times

Cut-off times vary by institution and payment type. Below is a general reference — always confirm with your Treasury Management support:

Payment Type	Typical Cut-Off (ET)	Settlement
Standard ACH	Varies (check with bank)	1-2 business days
Same-Day ACH	Multiple windows (check with bank)	Same business day
Domestic Wire	Typically 4:00-5:00 PM ET	Same business day
International Wire (USD)	Typically 2:00-3:00 PM ET	Same business day (timezone dependent)

Troubleshooting

ACH Payment Rejected

• Verify the payee's routing number and account number are correct.
• Check that your ACH limit has not been exceeded.
• Ensure the SEC code is appropriate for the payment type.
• Confirm the effective date is a valid business day.

Wire Transfer Rejected

• Verify the beneficiary account number is correct.
• For international wires, ensure the SWIFT/BIC code is valid.
• Check that your wire limit covers the transaction amount.
• Confirm the wire was submitted before the cut-off time.

ACH Return Codes

If an ACH payment is returned, it will include a return reason code (R-code):

Code	Meaning
R01	Insufficient funds
R02	Account closed
R03	No account / unable to locate
R04	Invalid account number
R06	Returned per ODFI request
R10	Customer advises unauthorized
R14	Representative payee deceased
R29	Corporate customer advises not authorized

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