ACH is an acronym that stands for Automated Clearing House. The ACH network is a secure payment transfer system that connects banks all over the U.S., making it easy for them to transfer funds amongst one another while relying on a common set of standards. It represents an important link in the Electronic Funds Transfer (EFT) process that acts as a sort of escrow for payments as they await clearance for their financial banking destination.
The new ACH feature in Accounts Payable allows you to use EFT as an alternative to issuing paper checks for payment. That means paying vendors and taking advantage of early payment discounts is easier and faster than ever. Plus, you eliminate the complications and cost of:
- Processing paper checks including printing, stuffing, and mailing
- Purchasing and securing paper check stock
- Approvals and signatures that can delay paper processing
What is Positive Pay?
If you’re unfamiliar with Positive Pay, it’s essentially a tool for fraud prevention and security. Offered by most banks, Positive Pay is a service that matches the check number, account number, and dollar amount of each check presented for payment against a list of checks that have been previously authorized by your company. All three components of the check must match the exact details of the authorized list or the bank will not pay.
With Positive Pay in Sage MAS 500 Version 7.3, a file is generated and sent to the bank each day that checks are written. That file contains information necessary for the bank to match your authorized payments. In the event that a check is presented that does not match the list, the bank will send an image of the item to you for manual authorization to pay or return the check.
Learn More About ACH and Positive Pay for Sage ERP MAS 500
Contact one of the Sage ERP MAS 500 Authorized Partners in this directory if you’d like to learn more about these exciting new features in Accounts Payable.
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