< Back

EASY PAY is an exciting service offered by Cashmere Valley Bank that gives business customers the ability to originate electronic transactions. Organizations that originate these transactions are called Originators. Transactions can be either debits or credits. Examples of debit transactions include utility payments, account drafts, membership fees, dues, insurance premiums, etc. Credit transactions usually are for Direct Deposit of Payroll, electronically crediting a deposit account for the net payroll amount.

Who can participate in EASY PAY?
Any company whose financial institution has the capability to originate Automated Clearing House (ACH) transactions can participate in EASY PAY. Cashmere Valley Bank has implemented a comprehensive ACH processing system that allows the bank to originate and receive ACH on our customers' behalf. We have taken this technology and combined it with Online Cash Management, training, our service, documentation, and expertise to create EASY PAY.

What is ACH?
The Automated Clearing House (ACH) was formed in 1978 to provide a nationwide network to distribute electronic transactions. The National Automated Clearing House Association (NACHA) has over 40 participating regional associations, all of which use the same format for ACH transactions. Since all financial institutions are required to accept ACH, transactions can be posted to any Bank, Credit Union, or Savings and Loan within the Federal Reserve System.

Why should my organization be interested in participating in EASY PAY?
Participation in EASY PAY can reduce the costs associated with manually processing debits and credits. The cost to create and distribute payroll checks averages over $1.50. If you factor in the hassle of employees trying to get a deposit in on time, second or third shift employees, and absent or sick employees, manual payroll distribution can negatively impact your organization. The cost of Direct Deposit of Payroll using EASY PAY is only a fraction of the cost of manual processing.

Similarly, the cost of manually creating invoices, mailing them to customers, providing a return envelope, waiting for checks to be mailed, and creating deposits averages $3.00 to $5.00 nationally. Some organizations have begun utilizing a "lockbox" operation where payments are mailed to a P.O.Box, processed by a third party, and a single check mailed to the organization. However, lockbox processing still does not get money to your account and can be more expensive than ACH due to paper and mailing cost. Direct Debit using EASY PAY is the most cost effective way of processing any type of receivable that is currently handled manually.

How can I determine what my savings will be?
Cashmere Valley Bank will assist you in determining what your current costs are versus EASY PAY. Each Originator will have different costs and transaction volumes. Cashmere Valley Bank’s Electronic Banking Manager will be glad to assist you in determining your specific situation.

How will I get my employees/customers to sign up for EASY PAY?
Cashmere Valley Bank will assist you in communicating the benefits of EASY PAY to your employees/customers. We will provide brochures, sample letters, assistance in employee meetings, or other events that will reach your employees/customers. Most individuals already have at least one automatic transaction posting to their account. The employee/customer can cancel the automatic transaction with notification and there is little or no risk to them. The benefits make ACH a popular offering for participating organizations. Participating employees/customers (called a Receiver) sign an authorization allowing you to perform the transaction on their behalf. Cashmere Valley Bank will even provide you with the authorization form to use.

Do my employees/customers need to have their account at Cashmere Valley Bank in order to participate?
No. They can have an account at any financial institution in the United States.

How will I get the transaction information to Cashmere Valley Bank?
The ACH format is standard throughout the U.S. and many software vendors have already included ACH file creation within their products. Therefore, your existing software might already have the capability to create an ACH file. If you do not have the capability to create an ACH file, we will provide the option to you through our Online Cash Management service. If you are using your own software to create your file, your file may be uploaded and sent electronically through our Online Cash Management service.

How will payments be settled to my account?
The offset of the transactions you originate will be posted to any Demand or Savings account held at Cashmere Valley Bank. For example, if you originate $5000 in Direct Deposit credits, your account will be debited for $5000. If you originate $5000 in debit transactions, your account will be credited for $5000.

What effect will EASY PAY have on my cash flow?
EASY PAY can improve cash flow dramatically. For example, suppose you are sending invoices on a monthly basis. You mail invoices 4 times a month, however, your customers send in payments whenever they get around to it. This means incoming cash is delayed. With EASY PAY, you will create 4 transaction files and send them to Cashmere Valley Bank. On the date the transactions are to post (the effective date), your account will be credited with the amount of the transactions. No more waiting for your customers to remember to mail you a check!

What about returned items?
ACH transactions can be returned just the same as checks. Incoming ACH returns will be communicated to you on a daily basis, as they happen. You can either reinitiate the transaction or handle it as you would a returned check.

What do I need to do to get started?
Contact Cashmere Valley Bank’s Electronic Banking Manager, Sharon Low at (509) 664-5451. She will assist you in determining your method of transaction generation, and getting an Originator Agreement signed.