Exchange Bank Scheduler

Cash Management Glossary

Automated Clearing House (ACH) — The ACH is a network of regional associations, inter–bank associations, and private–sector processors. ACH payments are processed and settled electronically, thereby increasing reliability, efficiency and cost effectiveness. ACH payments are generally settled in one day or greater.

Batch — An ACH batch consists of a template (see below) and a collection of transactions having the same purpose and effective date to be performed, and may also include addenda information.

Cash Concentration or Disbursement (CCD) — The ACH payment format used for concentration of funds between or within companies. A single 94–character record contains the standard entry class indicating the type of transaction, routing and transit numbers of the ODFI and RDFI and the originator and receiver account numbers. CCD is the only corporate ACH format that does not have space for additional addenda information, but it does contain space for a reference number.

Company Administrator — The customer, or a person assigned by the customer, who will have administration responsibilities in the Commercial Customer Platform of AXIS Cash Management.

End-user — An employee of the customer that is given access to the Cash Management system by the company administrator.

FedWire — The Federal Reserve funds transfer system. FedWire transactions involve the immediate, same day settlement of funds. FedWire instructions are irrevocable.

Float — Time interval, or delay, between the start and completion of a specific phase or process (check or electronic deposits, clearings etc.) that occurs along the cash flow timeline.

Initiate Batch — The Cash Management end–user initiates an ACH batch by reviewing the transfer information and assigning a settlement date. Once the user deems all of the information correct, the system creates a formatted NACHA file with all of the batch information.

Memo Posting — Posting electronic transactions early in the day when the actual debits or credits will not be posted until later in the day.

NACHA File — The file that is actually transmitted to the clearinghouse for processing is called a NACHA file.

National Automated Clearing House (NACHA) — A membership organization that provides marketing and education assistance and establishes the rules, standards and procedures that enable Financial Institutions to exchange ACH payments on a national basis.

Non-Repetitive (Free Form) Wire Transfers — All information contained within the wire instruction is different each time the transaction takes place.

On–Us Transactions — Those items, either check or electronic, paid or deposited to and drawn or debited on accounts from the same Financial Institution.

Originating Depository Financial Institution (ODFI) — The Financial Institution issuing an ACH file(s) on behalf of its client.

Originator — The originator is the individual or organization that is initiating the ACH transmission. For our purposes, the originator is the Commercial Customer using the Cash Management system.

Participant — The participant is the individual or organization that will be affected by the ACH transaction (payee or draftee). An ACH transaction may debit or credit a participant’s account, e.g., a payroll deposit or a payment for services rendered. The participant information is referenced by the ACH transaction.

Payable Through Draft (PTD) — A payment instrument resembling a check that is drawn against a payor and not the bank. A draft is handled like a check through the clearing system, but the responsibility for paying the draft lies with the drawee. Companies use PTDs to preserve the right to review items prior to payment. (Example: Insurance companies viewing a car’s damage before issuing a claim check.)

Positive Pay — A service used to combat check fraud. The Financial Institution pays only those items with serial numbers and dollar amounts matching the company’s issue file.

Prearranged Payment or Deposit (PPD) — The ACH payment format by which consumers may authorize credits or debits to their accounts by a company or Financial Institution. These are normally recurring payments in fixed amounts.

Prenotifications (Prenotes) — Optional, zero-dollar entries that are sent to the ACH System and then the receiving Financial Institution to verify instructions prior to sending live entries.

Receiving Depository Financial Institution (RDFI) — The FI that receives the ACH debits or credits on behalf of an individual or business client.

Society for Worldwide Interbank Financial Telecommunications (S.W.I.F.T) — The major international interbank telecommunications network that transmits international payment instructions as well as other financial messages.

Template — The template contains the essential characteristics of the ACH batch, such as the name of the template, the type (class code) of ACH transmission (CCD or PPD), and the offset account. Although AXIS Cash Management only lists CCD & PPD, AXIS Cash Management will create the appropriate CCD+/PPD+ ACH Batch if a participant with an addendum is associated with this batch.

Transaction — An ACH transaction is an entry within the NACHA file that indicates how the participant’s account should be affected. The transaction includes a reference to the participant, how the account is affected, and the amount.

Transit Routing Number — The MICR line on a check contains the transit routing number, which the depository bank uses to route the check back to the drawee bank.

Zero Balance Account (ZBA) or Target Balance Account (TBA) — A disbursement account on which checks are written even though the balances in the accounts are maintained at zero (ZBA) or an established target balance (TBA). Debits are covered by a transfer of funds from a master account at the same bank.