Quick Reference Guide: ACH Prefunding

Overview

ACH Prefunding is the requirement or ability to ensure funds are available in advance to pay and process credit origination. Configurations are required to be completed within SilverLake ACH Company Maintenance.

Benefits

Benefits for Banks

Enhancement risk management
Increased opportunity for funds availability

Benefits for Customers

Decreased risk of funds not being available for payroll files

Configuration

SilverLake ACH Company Configuration

1. Allowed to ORiginate Debits, Credits, or Both: Allowed to Originate Debits, Credits, or Both needs to be configured for either Credits Only or Both

2. NetTeller Offset Flag: NetTeller Offset Flag will need to be configured to O – Create Offset for Treasury Management customers. This feature is utilized by multiple digital platforms. There is no dependency for NetTeller for Treasury Management customers.

Treasury Management Back Office Company ACH Configuration

Company ACH Configuration

Offset Account
Prefunding - Yes
Prefunding Days

Note: These fields will be read/informational only, there will not be an option to modify. If modifications are needed, please utilize the ACH Company Maintenance option within SilverLake.

Offset Account on Review Progression

User Action: With this enhancement, the offset account entry functionality has been moved to the Review tab for all ACH payment workflows. Customers entering or uploading credit origination files for an ACH Company enabled for prefunding will no longer be able to select their offset account; it will prefill based on the offset account that is setup in SilverLake within the ACH Company Maintenance for that ACH Company.

Credit origination files will be transmitted to SilverLake upon final approval based on the number of prefunding days configured in advance of the effective date.

Important Information

Only one offset account will be utilized for prefunded payments – users will not have the option to select which account they want the offset to generate from. The offset account that will be utilized is the Offset Account/Account Type that is configured in the ACH Company parameters within SilverLake on the first page of the ACH company setup.
Only the credit transactions part of the payment will be transmitted to SilverLake. The offset transaction will not be transmitted from Treasury Management to SilverLake, the offset entry will occur within SilverLake.
For previously scheduled payments, prefunding will not apply, if prefunding is needed, users must cancel their future dated or recurring payments and recreate.