Bank of Lincoln County has selected ACH Federal to provide Web-based and customized automated clearinghouse processing services, according to the Chattanooga, Tenn.-based electronic payments provider.
The community bank chose ACH Federal because its former ACH core processor left the ACH sector, Kathy Kent, a vice president at the financial institution, tells PaymentsSource. The bank’s previous processor also “wanted to charge the bank higher implementation and monthly fees than we were used to,” Kent says.
ACH Federal’s fees generally are low, and “the bank does not even pass the monthly charge along to its customers,” she says.
Customers may now collect payments online, make payments to vendors and deposit payroll funds into employee accounts, ACH Federal noted in a news release. ACH Federal also will provide the bank with a Web-based platform that securely processes ACH transactions through a terminal connected directly to the Federal Reserve system.
Additionally, the Web-based platform complies with NACHA’s requirements for fraud prevention and includes a dual-file approval system, multifactor authentication for login and data-encryption software for all transactions.