ACH or wire transfers? Four factors behind the cash manager's choice

Article Abstract:

Cash managers have to decide for their corporations whether it is better to use automated clearing house (ACH) services or wire transfer services when making payments. Factors affecting the decision include: (1) prices related to the two forms of payment; (2) settlement, or the timing needs related to the transaction; (3) the potentialities of transaction failure, which could incur fraud accusations; and (4) the informational needs of the company related to payments on account. Basically, ACH is appropriate for the processing of checks in batches, when timing is not critical. Wire transfers are appropriate when making large-dollar payments, the timing of which is critical. Differences between the two payment methods are detailed with relation to settlement, financial information provided, pricing, and security.

Usage, Bank clearinghouses, Electronic funds transfer systems, Check collection systems

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NCCMA account analysis prototype

Article Abstract:

The National Corporate Cash Management Association (NCCMA) has proposed standard formats for banks issuing cash management account reports to clients. The proposed standard formats are provided as a prototype in four sections: (1) current and historic balance and compensation information, (2) adjustment detail, (3) management summary of accounts, and (4) service description and cost information. NCCMA has published these prototypes under the proposed standards in order to invite comments and criticism from banks and cash management account users. The standards, if adopted, should facilitate corporate treasurers' and controllers' evaluation of cash management services.

DEPOSITORY INSTITUTIONS, Standards, Financial statements, Corporation reports, Company reports, National Corporate Cash Management Association

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Transmitting bank account analysis information

Article Abstract:

Companies can obtain bank account data in more useful formats and can introduce their banks to electronic account statements by developing a data transmission format. The format is a restatement of the current account data used in performing analyses. The formats themselves and the reasons such formats are more useful than currently generated bank reports are discussed. The method of reporting recommended standardizes the calculations that comprise a bank account balance statement, but do not restrict the way in which data file are sent to the bank's client corporations.

Bank accounts

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