Transfers

When adding a new external transfer account, it’s vital to ensure you’ve added the correct information. The most secure route to do so is using micro-deposits, which are the small transfers that the end user must validate before transferring to or from the new account. It’s simple to use, and most importantly, it helps protect your end users against fraud.

How it works

When an end user adds a new external transfer account, the app prompts them to validate two deposits of a random value under one dollar to the account selected. End users simply need to enter the amounts of the micro-deposits by selecting the external transfer account again, and they’ll be able to use it immediately. It’s simple to use and simple to set up.

Customization

While micro-deposits are simple, your financial institution can customize a few details. Your institution has control over the following micro-deposit fields:

• Number of days before a micro-deposit is invalidated (38 days by default and this can be configured in People)
• Maximum micro-deposit amount ($0.99 by default)
• Maximum failed attempts to enter micro-deposit amounts before the account is locked out (9 by default, see faq for more details)

NACHA standards

Banno micro-deposits follow all NACHA micro-entry standards. This outlines a number of common sense rules, including:

• Micro-deposits must be $1.00 or less
• The Company Entry description must include the term ACCTVERIFY
• All credits must coincide with a debit of equal or lesser value

Credit unions

Importantly for credit unions, this also means micro-deposits require a unique group number. Credit unions must provide a unique group number number to a support representative to configure micro-deposits and allow end users to continue adding new external accounts.

FAQ

Internal transfers are the most common transfer type for your end users: moving money between accounts within your institution. While performing the transfer is a simple task for the user, the action behind the scenes can be complex. Transfers vary based on when they are performed, how they are scheduled, and the core your institution uses.

Immediate internal transfers

When a user does not set a future date for a transfer, the transfer is processed as soon as possible. We call these transfers immediate transfers. These transfers will be posted as soon as possible and cannot be edited or reversed through Banno Apps.

Processing immediate transfers

Immediate internal transfers are written directly to the JHTRAN file in your institution’s core after verifying available funds.

Verifying available funds

When a transfer is submitted, the Banno Platform sends the transfer amount and an available balance table number to your institution’s core. The core determines if there are sufficient funds based on a calculation using that table number. The table number used depends on the type of NetTeller ID used for each end user.

Retail IDs

Retail end users utilize a table number configured in Banno. If your institution has migrated from NetTeller, this number will usually be an equivalent value to the one used in NETPAR Internet Banking General Parameters.

Cash Management IDs

Cash management end users use the table number set in NetTeller for their NetTeller ID.

If sufficient funds cannot be found, the end user will receive an error notifying them that they have insufficient funds to complete the requested transfer.

Posting immediate transfers

Immediate transfers memo post as soon as the end user enters the transfer. Transfers are hard posted during the end-of-day (EOD) process. While the transfer screen can display a cutoff time to the end user if configured in Banno People, this EOD core process determines when a transfer hard posts. If an end user enters a transfer after EOD has already begun, the transfer will be hard posted the next processing day.

For example, your institution set its Banno configuration to display a 6 pm cutoff for internal transfers, but you don’t run EOD until 7 pm. Assuming Wednesday is a processing day, your end users will see the following:

• A “Soonest possible” internal transfer submitted by an end user at 5 pm on memo posts right away and hard posts during EOD.
• A “Soonest possible” internal transfer submitted by an end user at 6:30 pm memo posts right away and hard posts during EOD.
• A “Soonest possible” internal transfer submitted by an end user at 10 pm memo posts right away and hard posts during EOD the following processing day.
• A future-dated transfer submitted at any time uses the AFT system and processes and posts according to your institution’s AFT parameters.

Editing immediate transfers

Immediate transfers cannot be edited or reversed through Banno Apps. If a user wishes to edit or reverse a transfer they have submitted through Banno Apps, they must contact their financial institution to do so.

Future internal transfers

Future-dated and recurring transfers are a bit more complex than immediate transfers. Both future-dated and recurring transfers use the same mechanisms within the Banno Platform, specifically utilizing Automated Fund Transfers (AFTs) to perform all scheduled transfers.

Processing future transfers

As the AFT system does not support one-time transfers, one-time future-dated internal transfers are created as monthly recurring transfers. These transfers then expire after the first instance of the transfer has occurred. While end users see these transfers as one-time transfers in their app, enterprise users at your financial institution see these transfers in core as monthly transfers.

Note for NetTeller users

If your institution uses NetTeller alongside Banno Mobile instead of Banno Online, future internal transfers created in one system are usually not displayed in the other. If your institution has configured NetTeller to show AFT transfers, Banno transfers will be visible in NetTeller. While generated transactions are visible in both systems, transfers are best managed in the system they were created in.

Verifying available funds

AFT parameters determine if there are enough available funds to complete a transfer at the time the transfer is scheduled to complete. As this verification is based on AFT parameters rather than the table numbers immediate transfers use, the results of each verification method may differ.

Posting future transfers

AFTs created through banno will memo post and hard post based on your institution’s AFT parameters. This means your configuration will determine if future transfers created by your end users are memo posted, as well as when they memo post if so.

For detailed information and help with your institution’s AFT parameters, please reach out to your core support representative to ensure that changes made for usage with Banno do not affect any other uses of AFT for your institution.

Canceling future transfers

Future and recurring transactions can be canceled at any time before processing. The end-user can select the transfer from the Transfers screen and cancel the transfer using the Delete button.

Transaction codes

The Banno Platform determines which transaction code to apply to any transfer based on the types of From and To account for each transfer. The defaults assigned by the Banno Platform are the most reliable codes to ensure all apps work properly. If your institution needs to change any of these transaction codes, please contact your support representative.

FAQ

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:

Products & Services → Online & Mobile → NetTeller Suite & goDough → Documentation → Training Materials

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 should 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

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.

In Banno Admin, a list of external accounts display in the end user’s Account window.

Verifying an external transfer account

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 give FIs the power to configure the number of failed entries as well as the number of failed verification attempts they want to allow before the account becomes ineligible for external transfers.

If a set of micro deposits expires before successful verification, Banno Online will show that the set has expired, at which point the end user can submit a new set of micro deposits to reset the account and allow continued verification attempts.

If verification is not successful within the FI’s configured maximum number of attempts, the account will become locked and will require FI intervention to unlock.

Deleting external accounts

In Banno Apps, end users can view account details and delete external accounts in the External transfers window.

In Banno Admin, admin users can delete external checking and savings accounts on behalf of the end user—including external accounts with Micro-deposits pending. The external account is removed from the Banno App and Banno Admin, and it’s unrecoverable. If the end user needs to re-add the external account, they’ll need to verify the account again. When an admin user deletes an external account, the change is captured in both the end user’s Activity and your institution’s Banno Activity. Admin users with the Manage everything – users, messages & settings, Manage external transfers, or Manage security settings permission can delete external accounts.

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

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)

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

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

Configuration and eligibility

Can we block external transfer requests when our credit union is in Memo Mode?

Yes, there is an institution-level setting that lets admins manage this behavior. To enable the feature, admins can open the Settings > Transfers screen in People and select the Block memo mode transfers checkbox. When enabled, members attempting external transfers during memo mode will receive an error message, instructing them to wait until the credit union is outside of memo mode before re-submitting their request.

Do external transfers and external transfer accounts configured through NetTeller carry over to Banno Apps?

When an institution migrates from Netteller to Banno, we migrate external transfers, external transfer accounts, and external transfer settings. If your FI is migrating from a different provider, we can migrate accounts and settings provided the deconversion files include the information needed.

Do Banno external transfers support International ACH Transactions (IATs)?

No, Banno supports only ACH transfers that use the WEB Standard Entry Class (SEC) code and transfer between domestic financial institutions. Transfers that originate to/from other countries are not supported.

Can cash management users use the external transfers feature?

No, external transfers are only available for retail end users.

Can our institution customize the micro-deposit process?

Yes! See the micro-deposit doc for more details

Can our institution allow only inbound external transfers?

No, the external transfers feature requires outbound external transfers at minimum. Financial institutions must originate ACH transactions to activate external transfers.

Can we customize the insufficient funds message for an end user?

No, we currently do not offer custom error messages for insufficient transfer funds.

Can an end user perform a principal-only external transfer to an internal loan?

This depends on your core. Currently, these types of transfers are available to institutions on Silverlake and Core Director.

Can an end user debit an in-house loan via external transfers?

Today this is not available functionality. End users can debit Checking and Saving accounts only.

Setting up external accounts

What types of accounts can be added as external accounts?

Checking and savings accounts may be added as external accounts.

Can an end user add the same external transfer account more than once?

An external transfer account cannot be re-added once it has been removed a number of times equal to the configured maximum failed micro-deposit attempts. If an end user attempts to add an account that has been added and not removed, the request will fail and be logged for audit.

Can we send a reminder to an end user who has not verified their micro-deposits?

For security purposes, we cannot send an end user a reminder to verify their account.

Which types of external transfer accounts allow for micro deposits to be pulled back?

When enabled, a pull back will occur for checking accounts only. Pull backs are not supported for savings accounts due to limits of Regulation D.

Is there a maximum number of accounts an end user can enroll for external transfers?

Yes, an end user can enroll a maximum of 100 external accounts.

Processing

When are transfer fees processed?

Transfer fees are taken from the appropriate account when the transfer is processed, at which time the available balance is also updated.

Do external transfers memo post on the core?

No, external transfer transactions only appear after processing has completed.

When are the ACH transactions for external transfers sent?

Banno utilizes your core settings for ACH processing to determine if transfers are sent immediately or in a batch.

Can external transfers be cancelled?

The end user can cancel any transfers that haven’t been processed yet from the app.

How often are external transfer limits enforced?

External transfer limits are enforced for the day they are created. That means an end user with a $1000 transfer limit can create a $1000 dollar transfer each day for multiple days in a row, even if all those transfers are scheduled to process on the same day.

NetTeller integration

Are transfer limits set in NetTeller reflected in Banno Apps?

The NetTeller transfer system is completely separate from Banno. If an end user has a $1000 limit for NetTeller and a $1000 limit for Banno, the user will be able to transfer up to $1000 using each service.

Episys-specific questions

Can we allow batch limits for external transfers?

No, Banno does not support batch limits.

How do end users know if micro-deposits have been rejected by the external institution?

Banno is not notified if a deposit to an external institution has been rejected. Your financial institution must notify the end user. Rejected deposits will usually appear with other ACH rejects the following day.

Banno uses a PowerOn specfile (BANNO.TRANSFERLIST.Vx.POW) to determine which shares and loans are eligible to appear in the transfer list when executing a transfer in Banno Apps.

For a Share or Loan to be eligible for transfer, the appropriate Service code(s) must be set in the Share or Loan record.

Service codes

SymXchange uses the Service code field in the Share and Loan record to authorize transfers, withdrawals, and deposits.

Verify that you have values set for the following parameter in you Banno SymXchange Client Parameters.

• Services for Transfer In
• Services for Transfer Out
• Services for Withdrawal
• Services for Deposit

For example:

Ensure that the Share or Loan you want to appear in the Banno Transfer list has the appropriate Service code set for Transfer In and Transfer Out.

• Service 1:

• Service 2:

• Service 3:

• Service 4:

• Service 5:

• Service 6:

• Service 7:

• Service 8:

For a Share or Loan to be eligible for cross account access, there must be at least one Preference Access record configured.

Preference Access records

SymXchange uses Preference Access records to authorize access to Shares and Loans not on the member’s login account.

To authorize fund transfers from a specific share or loan to be transferred to a share or loan on a second account, your FI must create a Preference Access records with an Access Type of Transfer Out or Transfer In.

For example, a cross account share-to-share transfer would have Preference Access records like this:

Source account:

• Preference Access
  • Access Type: Transfer Out
  • Account Number: <Destination Account>
  • ID Type: Share
  • ID: <Share ID>

Destination account:

• Preference Access

  • Access Type: Transfer In
  • Account Number: <Destination Account>
  • ID Type: Share
  • ID: <Share ID>

To authorize access from all shares and loans from the member’s login account to a specific share or loan on an alternate account, you will create a Preference Access record with the Access Type of Alternate account.

For example, your source account Preference Access record might look like this:

Source account:

• Preference Access:
  • Access Type: Alternate Account
  • Account Number: <Destination Account>
  • ID Type: Share (or Loan)
  • ID: <Share/Loan ID>
  • Enable Withdrawals: Withdrawals Allowed
  • Enable Deposits: Deposits Allowed

To authorize access from all shares and loans from the member’s login account to all shares or loans on an alternate account, you will create a Preference Access record with the Access Type of Alternate account and ID Type of Unrestricted.

For example, your source account Preference Access record might look like this:

Source account:

• Preference Access:

  • Access Type: Alternate Account
  • Account Number: <Destination Account>
  • ID Type: Unspecified
  • Enable Withdrawals: Withdrawals Allowed
  • Enable Deposits: Deposits Allowed
  • Enable Inquiries: Inquiries Allowed
  • Enable FM: FM Allowed
  These settings are not automatically set or maintained by Banno. It is your institution’s responsibility to set these values on members’ accounts.

End users expect to be able to transfer to loans, regardless of whether their payments are past due or not. For Banno’s transfer solution, this requires a specific transfer type and some initial configuration. We’ve got the solution for you laid out below.

Transfer type

Transferring to a loan creates a Loan transfer record in the Episys using the transfer type (9) Off Cycle. This ensures transfers to loans will always go through, regardless of the loan’s current delinquency status.

Configuration for off cycle loan transfers

If your institution is still using the older Share Transfer method for loan transfers, you’ll need to change a few settings in Episys to enable off cycle loan transfers, using the steps below.

1. Navigate to SymXchange Parameters > Account Service > LoanTransfer Record.
2. Find searchLoanTransferPagedSelectFields, createLoanTransfer, and updateLoanTransferByID and set both Home Banking and Admin Password to YES for each service, then save.
3. Refresh SymXchange.
4. Once the services are updated and refreshed, your end users will see their off-cycle transfers.

Daily Post off-cycle loan transfer job prompts

To ensure that Daily Post off-cycle loan transfers are processed as expected, you credit union must set several job prompts. The prompts required to ensure processing include:

• Perform Off cycle Loan Transfers:: Enter Y.
• Automatic Off Cycle Transfer Option Count:: Enter 1. This does not apply if your institution treats transfers differently based on member relationship code.
• Loan types: Enter specific loan types that off-cycle transfers can happen on if they have an off-cycle transfer record under the loan. If all loans can have an off-cycle transfer, enter ALL.
• Grace days after transfer date: How many days after the next transfer date should the transfer happen? If the transfer should occur on the next transfer date, enter 0.
• Cutoff days after transfer date: If funds are not available on the transfer date, how many days should the system keep trying to make the transfer?
• Accept Loan Threshold Payment:
  • Enter No to accept standard payment.
  • Enter Yes to accept the threshold payment defined in the Payment Application Method Parameters.
• Accept Unapplied Partial payments:
  • If your institution is not using this prompt with Auto Transfers, open a case with Symitar Lending Support.
  • Otherwise, set this prompt to match their Auto Transfers prompt if your institution allows unapplied partial payments on interest type 1 loans.
• Ignore Unapplied Partial Pmt field:
  • If your institution is not using this prompt with Auto Transfers, open a case with Symitar Lending Support.
  • If your institution does allow unapplied partial payments, setting this prompt to Yes will include the amount in the Unapplied partial payment field in the loan record to determine how much is due.
• Take Partial payments: Determine whether to accept partial payments if the member does not have the full payment amount available. If entering Y for this prompt,note the differing expected behavior determined by the Amount field in the transfer record:
  • Y behavior 1 of 2: If the Amount field in the transfer record has a dollar amount included, partial payment will be accepted and the next transfer date will advance. After the transfer prompt in daily post, the system will stops and ignores the cutoff days.
  • Y behavior 2 of 2: If the amount field in the transfer record is 0.00, and the member does not have the full payment available, it will take the partial payment. Next transfer date will not advance. Cutoff days are used after the transfer prompt.
  • N behavior: Partial payment is not accepted. The system tries to accept the full payment again based on the number of days entered for the Cutoff days prompt. If set to N, this prompt is not affected by the Amount field in the transfer record.
• Ignore Partial Payment:
  • Enter Y to exclude the amount in the Partial payment field in the loan record when determining how much is due.
  • Enter N to include the Partial payment amount field when determining how much is due.

All other job prompts may remain in their default values.

FAQ