Electronic Payments and Transfers

Processing the request for payment is the same whether writing checks or making wire transfers or ACH (online) payments. However, the method of making the payment differs.

When making a wire transfer or ACH payment, all documentation and authorizations necessary for any disbursement should be obtained prior to making the transfer. Further, a form should be developed that can be completed by the vendor showing:

• The payee
• The name of the payee's bank
• The account number for the payee
• The routing number for the receiving bank
• Addresses for the payee and the bank.

In addition, the following information should be added to the form by the organization making the payment:

• The amount of the wire
• The date the transfer takes place
• The initials of the person making the transfer
• The initials of the person(s) authorizing the transfer

Wire transfer and ACH instructions should always be verified directly with the recipient, preferably by phone using a known and reliable contact phone number.

If the transaction is processed online, print (or save as a pdf document), and maintain the confirmation for the transaction for your records.

These wire transfers can be requested in person at the bank, by telephone call or online, if this service is available for the account. In each case, authorized signers will be involved in the process.

For electronic payments, the program can be set up in a manner that requires one or more approvals before the transfer will be released. For example, one employee will input the transaction. A second, and perhaps a third employee, will review the transaction, including the supporting documentation. The review of the documentation is important given the level of spoofing and other third-party fraud techniques now being used. The individual releasing the payment will have authorization codes that will need to be posted before the transaction will be released. This process ensures that the transaction has been properly authorized prior to it taking place. Two individuals, at a minimum, should always be involved when processing electronic transactions.