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Administrative
returns can become the Achilles' heel of ACH conversion. If they are not
handled in a way that reduces the future likelihood of receiving such
items, they jeopardize the business case for ACH conversion. Solutran’s MICRefineTM product manages such items with the ultimate goal
of reducing receipt of administrative returns.
According to the National Automated Clearing House Association (NACHA),
an administrative return is classified as an R03 or R04. These return
codes identify that the ACH could not post to the consumer’s account
either because the account number was invalid, or the account could not
be located. This means the transactions could not post via ACH and
different handling of these items must take place.
Enter MICRefine, a
database built by Solutran to perform parsing, swapping, and scrubbing
of your data. Parsing is the ability to accept raw MICR data and
identify the appropriate routing number, account number, and check
number to use for ACH processing. Swapping is the ability to recognize
a routing and account number format that needs to be changed, or
swapped, in order for the ACH to post properly to the paying bank (RDFI). Scrubbing is the ability to recognize items that are not ACH eligible,
such as business checks or money orders, identified by NACHA, and
customers who have chosen to opt-out (for Accounts Receivables
Conversion – ARC).
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MICRefine’s
knowledge database is built from a multitude of sources, including
Notification of Change (NOC) management, administrative return research,
and databases and rules algorithms to supply the industry’s most
effective and comprehensive data output system. This database offers,
in one repository, six years of knowledge on ACH eligibility and repair
that Solutran has accumulated on consumer payments to national retailers
and billers.
Solutran handles
every administrative return in an effort to constantly decrease the
likelihood of receiving such items. After calling the banks to identify
the cause of the return, we conduct extensive data analysis against
existing records before testing and implementing any changes into the
MICRefine system. Our goal is to consistently enhance the database to
stop the recurrence of administrative return issues and management.
MICRefine is available 24 x 7 to support all users’ processing schedules
(there is a two-hour weekly maintenance window). MICRefine is available
either as a service bureau option or a client-hosted database (available
in September). For the service bureau option, Solutran will provide
rapid turnaround via our Internet-based facilities. We also provide
detailed reporting, including the number of items submitted and
changed. Clients who elect to host the database can write an interface
to a standard API; Solutran will update the database on a regular
basis. Whether you decide to host it yourself or use our service bureau
option, you gain the benefit of all the data Solutran accumulates across
our client base. This provides you with the most extensive
administrative returns database in the country.
When considering ACH conversion services like point of sale conversion
or accounts receivable conversion, keep MICRefine in mind. |
