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External transfers

Banno Apps allow end users to add accounts from other institutions, moving money between your institution and another. We make sure it’s easy to create and edit transfers, but behind the scenes things are a little more complex. But don’t worry! We’ve got all the details you need.

Setting up external transfers for the first time

Banno handles external transfers via national Automated Clearing House (ACH) transactions. Your financial institution provides a micro-deposit account to fund the micro-deposits used to validate external transfer accounts added by end users. End users will follow the standard transfers flow when creating a new external transfer, but adding new external transfer accounts requires a little extra work.

Creating an ACH company

Your institution must create an ACH company to process external transfers.

For detailed information, see the Cash Management training guides on For Clients portal by navigating to:

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When creating your ACH account, use the following settings:

  1. Select ACPAR- ACH Company Maintenance
  2. Establish the ACH Company File with the following:

Company name
Enter your institution’s name or another desired value. This field will appear in the transaction description for external transfers.
Company ID
Enter your institution’s tax ID number or another desired value.
Standard Entry Code
Select WEB. This field will appear in the transaction description for external transfers.
Entry Description
Enter any desired value, most often MBL XFER. This field will appear in the transaction description for external transfers.
Discretionary Data
Enter any desired value. This often matches the Entry Description.

End user default settings

When setting up the external transfers feature, you’ll need to set up a few default values for your end users. While some of these can be changed per user, some will apply to all end users at your institution. The default values you’ll need to set are outlined below.

Inbound fee amount
The amount charged to an end user’s internal account when an inbound external transfer is processed into that account. This fee will not be charged if the internal account is a loan account.
Outbound fee amount
The amount charged to an end user’s internal account when an outbound external transfer is processed from that account.
Daily inbound velocity
The dollar amount that a Banno end user can transfer from external to internal accounts. This limit is separate from any NetTeller bank-to-bank limits your institution may have set.
Daily outbound velocity
The dollar amount that a Banno end user can transfer from internal to external accounts. This limit is separate from any NetTeller bank-to-bank limits your institution may have set.
Cutoff time
The desired cutoff time for external transfers. End users entering external transfers after this time reveive a message stating that the transfer may process the following business day. This cutoff time must be at least 30 minutes before your institution’s configured ACH cutoff time.
Cutoff time message
Additional verbiage to be presented to users after the default message. By default, Transfers completed after ___ AM/PM may be processed the next business day. will be displayed to end users when entering transfers.
Maximum amount for micro-deposits
The maximum amount to be used for a micro-deposit sent to new external transfer accounts. The default range is $0.01 to $0.99. For security purposes, a maximum value lower than $0.25 is not recommended.
Maximum number of attempts to verify external accounts
The maximum number of attempts a user can make to verify a new external transfer account before the account becomes locked out. By default, 3 attempts are allowed
Number of days before micro-deposit is invalid
The number of days before an unverified external transfer account expires and is no longer eligible to be verified by the end user. By default, micro-deposits are valid for 38 days.

Enabling external transfers for end users

Once you’re ready to go live with external transfers, contact your support representative.

After external transfers are active for your end users, you can edit settings for individual users by logging into Banno and selecting People. You can search for end users by name, username, NetTeller ID, or email, then edit their permissions via the Transfers section of the Permissions tab.

Adding external accounts

  • Accounts
  • Add an external transfer account
  • Make external transfers

End users can add a new external transfer account at any time, but new accounts are subject to verification before they can be used to transfer funds. External transfer entitlements are based on standard transfer entitlements. Accounts eligible as From and To accounts for internal transfers will have the same eligibility for external transfers.

End users must enter an account name, routing number, account number, and account type to add a new external account. A confirmation screen will inform the user that two micro-deposits have been sent to the external account. If an end user reports an issue in receiving their micro-deposits, please contact your support representative.

Verifying an external transfer account

  • Settings
  • Account settings
  • External transfers

External accounts are verified to ensure the end user is authorized to make transfers to and from the account. Two micro-deposits, between $0.01 and $0.99 by default, are transferred from your institution’s micro-deposit account to the selected external transfer account.

After following the path above, the end user can select the account they’ve added to enter the amounts of the two micro-deposits into that account. The end user will be notified immediately if the verification succeeded.

Failed verification

Sometimes an end user enters incorrect deposit amounts. Banno apps allow for a configurable number of failed entries, as well as a number of failed verification attempts before the account becomes ineligible for external transfers.

If the end user fails to confirm the correct amounts the configured maximum number of times, the account will be removed and the user will be informed that they must add the account again. Hitting this limit counts toward the number of allowed verification attempts.

If an external account is not validated within the configured number of days, the account will be removed. This counts toward the number of allowed verification attempts.

If a user has exceeded the number of allowed verification attempts for a given account, the user is notified and further attempts to add the account are blocked.

Processing transfers

Banno processes external transfers via ACH Auto Transfer Records. Note that this is different from how NetTeller uses ACH transfers, and any core settings that affect the processing of Auto Transfer Records may impact the processing of Banno external transfers.

Silverlake

When a Banno end user successfully submits an external transfer, an Auto Transfer record is immediately created and the transfer will be visible in the ACH Auto Transfer Master (ACTMST) file.

This record is used to create the debit and credit transactions. When your institution originates, the ACH Auto Records are queried and the next transfer date field is inspected on each record to see which records need transactions created in the ACH Warehouse report. These transactions are then written to the ACWARE warehouse file. Two transactions are created: one for the debit, one of the credit.

Report 7072P includes all Auto Transfers for which transactions were created, while report AC7070P includes all Auto Transfers regardless of whether transactions were created. AC7070P includes the reason transactions were not created. See the FAQ for a list of potential exceptions for why transactions were not created.

CIF 20/20

If an ACH Auto Transfer fails to generate in CIF 20/20, the reason for the failure is found in the ACH Auto Transfer Record itself. This information can also be found in the AC3150 report.

Reviewing transfers before they process

If an outgoing transfer has not yet been originated and sent, your FI can delete it from the warehouse via trace number in ACENTRY 9 by deleting entries from the ACH Warehouse File. If the outgoing item has already been originated, your institution has two options: contacting the receiving bank and asking them to return the transfer, or sending an ACH reversal transaction.

Silverlake only

If your institution takes pre-origination, you can view items ready for live origination, including Auto Transfers, in the AC3212P report.

ACH returns from the Fed

Banno external transfers returned by the Fed are handled in the same manner as all other ACH returns.

Cutoff times

For both internal and external transfers, Banno Apps display the default date as “Soonest available” as cutoff times are displayed, but not rigidly enforced. Transfer processing occurs based on the time a transfer is submitted compared to AFT and ACH processing times.

Viewing and editing scheduled external transfers

Banno does not have knowledge of which days are core processing days for each potential FI involved in an external transfer. As such, it is not possible for Banno to accurately display all external transfers that have not yet been processed in the Scheduled Transfers list. Banno’s logic determines the most accurate possible list so that transfers without a corresponding transaction on the internal account will display in the Scheduled Transfers list. Transfers that have processed display only as transactions, and not as Scheduled Transfers.

Transfers in the Scheduled Transfers list that have already been added to the ACH Warehouse cannot be edited by end users. End users attempting to do so will be informed that the transfer cannot be modified as it is scheduled to be processed soon.

Trace numbers

Trace numbers are generated by the ACH Auto Transfer program based on the sending identification number from ACH Origination File Header Maintenance in ACPAR.

External transfer expiration

One-time external transfers expire seven days after the “next transfer” date.

Recurring external transfers do not expire and must be manually canceled.

Expired transfer records remain in ACTMST unless manually removed. If your institution has any questions or requires assistance with this process, please contact your Silverlake support representative.

Determining sufficient funds

Generally, your banking core determines whether a transfer processes when a transfer attempts to move to the ACH Warehouse. If your institution has a custom setting to move items to the ACH warehouse immediately, this check is instead done when the transfer is created in the core for immediate transfers.

This behavior is modified by two settings, one of which varies based on your core.

Debit if No Funds Available

  • ACPAR
  • ACH Auto Entry Parameter Maintenance
  • Debit if No Funds Available

This setting determines if your institution will allow an account to be overdrawn. When Banno creates a new transfer, a message is sent automatically to set this to No.

Use Available Balance (Silverlake)

  • ACPAR
  • ACH Auto Entry Parameter Maintenance
  • Use Available Balance

This setting determines if the Available Balance onf the From account is used to validate sufficient funds. When set to Yes, the core calculates based on Available Balance using the table number set at the account level or at the service charge code level. Otherwise, sufficient funds are determined by the Current Balance after subtracting holds.

Deposit account balance to use

  • ACPAR
  • Work with ACH auto entry parameters
  • Deposit account balance to use

Two options are available for this setting:

A
The available balance table configured in the ACPAR General Parameters via the Available balance table for ACH auto transfers is used.
L
The ledger is used, reflecting the Current Balance after subtracting holds.

Insufficient funds

If a transfer does not process due to insufficient funds, the end user is not notified by core.

One-time transfers are retried each origination until the seven day expiration period has passed.

Recurring transfers will be retried indefinitely unless the transfer is manually expired.

In order to better reflect the experience to users, Banno utilizes an additional check for immediate outbound transfers, allowing the Banno system to check available balances and notify the user if there are insufficient funds to process the transfer.

FAQ


What reasons might appear on report AC7070P for a record without transactions?
The following are all possible exceptions for transfer records in report AC7070P:
  • Auto amount change
  • Auto date change
  • Transfer has expired
  • Debit acct not found
  • Debit status invalid
  • Insufficient funds
  • Credit acct not found
  • Credit status invalid
  • Transfer transaction
  • Transfer Fee charge
  • Prenotice send
  • Loan balance is zero
  • Status – LN bal=0