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.
| 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 |
| 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 |
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
Pensions
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.
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
All our Partners currenlty offer ACH in varying capacities. If you are interested in using their facilities please reach out to the Partner you currently bank with for further information.
