Over the past 20 years, the volume of business-to-business ACH (Automated Clearing House) transactions has increased substantially. The US Government has all but eliminated check payments and moved to ACH. Similarly, most Fortune 500 companies now issue a majority of their payments via ACH. The reasons are economic – the use of ACH electronic payments is more efficient and less expensive than either checks or wire payments. However, since the payment data is as important as the actual monetary transaction, business ACH transactions also need to include a stream of invoice related information. This invoice related information flow is known as Electronic Data Interchange (EDI). Although EDI can and does occur outside of the ACH payments system (directly between the trading partners), it is often passed through the originating (ODFI) and receiving depository financial institutions (RDFI).
The primary benefit of EDI Fax Notifications is the single payment and data stream that will allow you to update your accounts receivable system accordingly. Using a capability known as “Translated EDI Service”, Union Community Bank will capture any EDI data that accompanies your ACH payments. We will read any received EDI formats, translate them to a readable version, and prepare a customer-friendly fax for delivery to you.
You can benefit from EDI Fax Notification if you are a business customer who:
- Receives EDI payments on a regular basis
- Has trading partners who require electronic invoice data delivery
- Receives payments from the US Government and/or related agency
Contact your Union Community Bank representative to discuss the details and benefits of EDI Fax Notifications.
Questions: Contact Customer Services
