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InfoLink Services Ltd

ACH

ABOUT

What is an Automated Clearing House (ACH)

An ACH network is a processing and delivery system that provides for collection, distribution and settlement of electronic credits and debits, and electronically facilitates the exchange of a wide variety of financial transactions between entitled parties. ACH acts as a central switch and transaction routing facility, providing a record keeping tool for settlement and risk management for all participants, including the Central Bank.

BENEFITS

Increase business
efficiency in the local
community

Provide greater consumer convenience and safety

Reduce cost of payments processing

A standardized, low-cost national payment system.

ADDITIONAL BENEFITS

ACH STATISTICS

Historical Overview

2018 2019 2020 2021 2022 2023 2024
QTR 1
1,174,357
1,298,574
1,395,994
1,704,744
2,191,360
2,492,041
2,818,246
QTR 2
1,195,979
1,321,974
1,430,132
1,859,491
2,306,723
2,602,197
2,963,815
QTR 3
1,248,872
1,380,303
1,616,860
2,080,936
2,441,529
2,704,690
3,114,067
QTR 4
1,306,707
1,413,377
1,715,606
2,259,254
2,517,923
2,908,125

A BRIEF HISTORY OF ACH

In 2001, the Bankers’ Association of Trinidad & Tobago (BATT) mandated that a committee be formed to explore the concept of an ACH in T&T

 

In 2003, the committee presented its endorsement to BATT for the establishment of an ACH

 

In 2004, the formation of Trinidad & Tobago Interbank Payments System Ltd. was approved and the company’s name was registered

 

In October 2005, TTIPS began processing payments in full production mode and the system was officially launched in January 2006.

 

In 2021 Trinidad and Tobago Interbank Payments System was bought by InfoLink Services Limited.

 

Defining the ACH Participants

ACH PARTICIPANTS DEFINITION / ROLE
Originator
Company, merchant or individual – entity that initiates an ACH debit or credit
Originating Depository Financial Institution (ODFI)
Institution that agrees to put the transactions into the Network on behalf of the Originator
ACH Operator
InfoLink Services Limited
Receiving Depository Financial Institution (RDFI)
Institution that receives transaction on behalf of account holder
Receiver
Account holder receiving the transaction
Settlement Agency
Central Bank of Trinidad & Tobago

Frequently Asked Questions

Electronic transfer of a payment from a company into the account of an employee, another company etc.
Originator initiates payment instructions to move funds into a Receiver’s account.

The most popular use is for payroll, but it can also be used for other types of payments including annuities, bonuses etc

 

Direct Deposit of Payroll

  • private
  • government

Pensions

  • private
  • government

Annuities

Bill payments

Government Vendor Payments

Consumer/Corporate Loan Payments

Corp-to-Corp Payments

Income Tax Payments

Dividends

Person to Person Payments (P2P)

 

Electronic transfer of a preauthorized payment from a consumer’s account into the account of a biller, financing or investment company etc.

Originator initiates payment instructions to collect funds from a Receiver.

Debit transfers can be used for consolidation of funds from subsidiaries or branch-type offices.

The dollar amount can be the same for each payment cycle or can vary from cycle to cycle. Debits are used by consumers for mortgages, insurance premiums, bill payment etc.

It is a secure, accurate and on time payment method.

 

  • Cash Management Sweeps
  • Bill payments
  • Corp-to-Corp Payments
  • Pension Contributions
  • Insurance Payments
  • Bond purchases
  • Holiday or vacation club payments
  • Mortgage and instalment loan payments
  • Rentals
  • Charitable donations
  • Tax Payments
  • Association/Club dues

 

The ACH in Trinidad and Tobago is governed  by the NACHA (National Automated Clearing House Association) rules.

These rules are designed to:

Reduce the legal liability of the ACH participants through the awareness and definition of rules, regulations and responsibilities

Provide a framework for standard operating procedures

Provide a point of reference for the major components of the ACH payment process

 

Improved Efficiency

Less manipulation required in the process

Fewer Errors

Reduction in Paper Items

Time

Faster movement of transactions

Faster settlement and Finality

Risk Reduction

Reduced time between actual transaction and settlement

Fraud Reduction

Information

Timely delivery of clearing statistics

More accurate reporting of payments and clearings activities

Better analysis of payments and clearing activities

Costs

Reduction in transaction costs

Opportunity to pass cost savings on to customers.

Customer Relationships

Presents corporate customers with a more efficient payments option. Business clients save considerable time and costs in payments processing.

Gives individual customers access to their money on the opening of business on payday

Improves customer loyalty since customers are happy with their account management using electronic payments

Increased consumer sense of security

 

Corporate Convenience & Efficiency – in the case of payroll, a company can automatically pay employees every month by sending one file of multiple payments to any bank. Companies can also receive or make payments to suppliers and clients. Less manipulation of data.

Collections & Cash Flows– In the case of debits, Collecting money from customers costs money. Companies are ensured timely payment collection (funds are available on the day they are due). Receivables delinquencies reduced. Funds are also debited from the company’s account on a precisely known date. More predictable and reliable timing of receipts

Funds Availability– Electronic Payments take as little as one day to clear, whereas cheques take as much as four days. Funds are automatically credited and debited on time

Admin. Efficiencies – Companies can print and store fewer cheques – lower administration costs through the elimination of manual cheque processing

Security – Customers and Companies are protected due to the secure nature of the automatic process (use of sophisticated technologies), as compared to cheques which pass through multiple hands in the processing phase.

Reduction of Fraud – (less opportunity for counterfeit cheques, stolen cheques, forged signatures). These payments never get lost or stolen.

Confidentiality – Money is transferred electronically and passes through fewer hands than a cheque, so financial privacy is actually heightened with electronic payments.

Fewer Errors (requires less manual handling than a cheque)

Timely Returns – Bounced electronic payments are usually returned more quickly than bounced cheques.

Customer Convenience – For individual customers, money is automatically deposited into their accounts on time and they don’t have to be at work or even in the country when the deposit is made.

Customers appreciate bill payments made easy. No unnecessary lines. It simplifies life!

Fosters Relationships – For the corporate, by providing an alternative payments option that offers convenience, reliability and security, consumer satisfaction and retention is fostered. Improved vendor and customer relationships

 

Fees

DOWNLOAD THE COMMERCIAL BANKS COMPARATIVE SCHEDULE OF FEES AND CHARGES