Cachet Financial Services. White Paper. 5 Considerations When Selecting a New ACH Processor Partner

Transcription

1 White Paper 5 Considerations When Selecting a New ACH Processor Partner

2 01 Banks are often less stable and secure than business leaders think. Payroll ACH is a specialty service. PEOs, ASOs, service bureaus and payroll teams need to ensure the payroll ACH process is efficient and reliable. If you re trying to reach untapped markets for payroll, it s important to note that organizations cannot complete the direct deposit via ACH on their own. Instead, independent service bureaus provide a trustworthy partnership to employers to ensure this step is completed smoothly. Many PEOs see banks as their primary choice, not realizing these institutions are not the only option. In fact, banks are often less stable and secure than business leaders think. Financial institutions are moving further away from providing ACH aid often as a surprise, leaving PEOs in a lurch to find a replacement service. Simply stated, payroll service bureaus and internal payroll teams need a partner that supports their role with an ACH service. Let s take a look at five of the most important elements you ll want to consider:

3 02 1 An In-Depth Knowledge of the Payroll Industry The various steps tied to completing payroll can be complicated for employers, even when they outsource to a third-party provider with experience in the process. Banks are often not as familiar with the actions included in the method, so much as they have a basic knowledge of the procedure. A payroll service bureau can often confuse a bank partner even more, making outsourcing more challenging than it needs to be for clients. Bank institutions are used to servicing companies and commercial clients - like gas stations and manufacturers or standalones. Payroll service bureaus that enter the picture, as a result, may only add another piece to a puzzle that banks struggle to understand. As a result, financial institutions are more likely to put restraints on transactions because they don t fully grasp the process. Additionally, the ACH landscape is changing across banking institutions nationwide the process is being eliminated from banking services altogether. PEOs and service bureaus will need to consider an alternative ACH processor that is well versed with the intricacies of the service you are providing payroll. understanding of liability with expertise in payroll compliance that outsourced payroll providers and standalones can leverage. These partners must know what risks to look for and how to deal with them. A key ACH partnership can help independent payroll providers manage their employer clients and offer internal payroll teams proactive steps to mitigate risks. The ACH landscape is changing across banking institutions nationwide the process is being eliminated from banking services altogether. This means finding an ACH partner that truly understands the payroll industry as a whole, from the beginning to the middle to the end. Someone who is a trusted advisor for PEOs and service bureaus that are offering ACH for payroll direct deposit and other direct deposit business needs. For standalones with an internal team, an indepth knowledge of the payroll industry is a must. Ultimately, an ACH provider should have a clear

4 03 2 Availability of a Crime Bond to Protect 3 No Demand of Multiple Audit Reviews Payroll Funds ACH processors are in charge of moving funds from one account to another. If anything should happen, payroll teams will want to know their client s and employer s money is insured. As a payroll provider, working with a partner that offers security in case of emergency means more credibility for your payroll service offering. A crime bond covers any fraudulent activity that may occur as money is transferred while in the possession of your ACH provider. This ensures your client s funds are safe and will improve overall trust of your relationship and service. A credible ACH partner should absorb the cost of the crime bond, allowing you to avoid additional expenses while safeguarding your payroll. If you re a mid-large range employer, we re sure you re familiar with the story of workers running off with company money. Yikes! When those funds are tied to direct deposit via ACH, that money often belongs to their colleagues as well. Although the majority of companies take the necessary steps to verify their employees trustworthiness, are these tests 100% foolproof? This is added security you ll want to make sure is part of your ACH partner service. Inspections and information pertaining to payroll details can be tiresome. If audits occur on a biannual or worse, a quarterly basis, payroll providers can quickly become frustrated by the increased number of check-ins from an audit. Instead, they want to know their annual audit is thorough enough to catch and fix any problems that arise. Continuous inspections only lead to resentment and reduced satisfaction in a remarketer s service or frustration for a payroll team. An ACH processor that doesn t require these audits is actually able to keep this additional burden off a payroll provider s shoulders. A solid ACH partner takes on the majority of the due diligence necessary for compliance and liability. As a result, the preparation for the annual audit is completed, taking that pressure off payroll providers and keeping clients or payroll teams satisfied. No matter what ACH partner businesses work with, they will face regulations. However, an effective ACH relationship will relieve stress from payroll providers by not having to deal with multiple audits throughout the year. If anything should happen, payroll teams will want to know their client s and employer s money is insured.

5 04 4 Added Security of An SSAE 16 Certification In addition, choosing an ACH processor that adheres to the standards set forth in a SSAE 16 certification provides significant benefits for PEOs, service bureaus and payroll teams. A SSAE 16 report performed by an independent auditor ensures a level of trust since it proves systems and controls are in place, secure and effective at the ACH level. In addition to annual and internal audits, the independent SSAE 16 certification performed by a third party is more thorough and will enhance the identification of inefficiencies or areas for improvement your ACH partner provides. This gives payroll providers the opportunity to take another breath of fresh air. Lastly, PEOs and service bureaus can expand their market share beyond privately held client companies, as all publicly traded organizations are required to use service providers that are SSAE 16 certified. 5 Ability to Flourish and Grow PEOs, ASOs and service bureaus are constantly looking for their next step on their way to expansion. Implementation of preferred partners efficient payroll ACH not only helps with growth and service value proposition, but can also improve client satisfaction with payroll services overall. This definitely holds true with an ACH processor that does not have dollar volume or transaction volume limitations. This allows remarketers to process as much business as they can obtain. For payroll teams, it can be difficult for the organization to complete introductions of efficient payroll ACH successfully on their own. Instead, the option of choosing an ACH partner that understands their current needs, future goals, and can efficiently and effectively complete the process becomes preferred. Every company is different and deserves a custom service level by its ACH processor based on its distinct payroll practices. PEOs, ASOs, service bureaus and payroll teams have a lot of choices when it comes to choosing an ACH processing partner. Points of selecting an ACH partner should include identifying points of risk or accuracy in your processing, another set of hands on the process and expertise to ensure service level is top-notch. In review, you should factor a number of elements into your selection process, including the partner s understanding of the payroll industry, availability of a crime bond for fraudulent activity, no demand of burdensome quarterly audits, completion of annual SSAE 16 certification, and the ability of the customer to flourish and grow as a result of the relationship. Every company is different and deserves a custom service level by its ACH processor based on its distinct payroll practices.

6 05 About Cachet: Cachet Financial Services 750 E. Green Street, Suite 315 Pasadena, CA Phone: Fax: Cachet offers an individualized experience for remarketers based on their business growth goals. The aversion to canned pricing also allows Cachet to provide a higher level of care for their partners with a fair price for services. We do not have dollar or transaction volume limitations, which further ensures your business objectives and our partnership meet your needs. Working with Cachet helps PEOs, ASOs, service bureaus and payroll teams efficiently and effectively complete their payroll practices without limitations, at a reasonable price, and with a partner they can rely on for expertise. Cachet Financial Services provides clients with comprehensive, tailored solutions and services beyond direct deposit via ACH. We also offer our clients the use of ACH processing for 401(k), tax, expense reimbursement payments and other additional business needs. When it comes to security, Cachet has a $50 million dollar crime bond to keep client funds as safe as possible while in the possession of Cachet and is third party SSAE 16 certified. Have specific questions? Contact one of our payroll ACH experts for additional information