Last Revised (06/12)

ACH DirectElectronic Payment Authorization

(EPA)

ACH Direct –Electronic Payment Authorization (EPA)

1

Contents

Page

Section 1: Overview of EPA 2

Section 2: ACH Direct E-Mail Notifications 3

Section 3: EPA Add (Adding an Authorization) 5

Section 4: EPA Search 8

Section 5: Changing an Authorization 11

Section 6: Deleting an Authorization 13

Section 7: Reject Decisioning 15

This document is designed to provide general information only and is not legal advice. Iflegal advice or other expert assistance is required, the services of a competentprofessional should be sought. KeyBank (Key) does not make any warranties regardingthe results obtained from the use of this information.

ACH Direct –Electronic Payment Authorization (EPA)

2

Section 1: Overview of EPA

Electronic Payment Authorization, provided via ACH Direct, is comprised of twocomponents:

1. Designated e-mail notifications are sent to each designated individual for theaccount(s) which they are set up for. Examples of e-mail triggers are receipt of anauthorized transaction, receipt of a transaction without authorization, and actionstaken on rejected transactions.

2. ACH Direct (accessible through Key Total Treasury) enables authorized individualsto decision pending transactions, search authorization records and manage existingauthorization records.

By default, clients are set up so that ACH debits attempting to post to the account areblocked. If there are trading partners who are authorized to debit your account, you maycreate an authorization online through ACH Direct. This will allow their debits tosuccessfully post to your account without intervention.

ACH Direct –Electronic Payment Authorization (EPA)

3

Section 2: ACH Direct E-Mail Notifications

Once the EPA service is activated, you will receive event triggered e-mail notifications.Each notification type is assigned a number, making it easy for you to identify the typeof notification and any action that may be required.

Number Notification Action Required

100

The following ACH transactionwas authorized during the last

collection cycle and will beposted to the designated

account.

Informational e-mail with noaction required.

101

The following ACH transactionwas rejected during the lastcollection cycle and will be

returned if no action is taken by7:00PM ET on the indicated

return date.

Log into ACH Direct and decisiontransaction(s).

102

The following ACH transactionwas rejected during the lastcollection cycle and will be

returned if no action is taken by7:00PM ET on the indicated

return date.

Log into ACH Direct and decisiontransaction(s).

201

The following ACH transactionwas rejected for a missing or

unqualified authorization recordand was subsequently

APPROVED via the RejectDecisioning feature.

Informational e-mail with noaction required.

202

The following ACH transactionwas rejected for a missing or

unqualified authorization recordand was subsequently

REFUSED via the RejectDecisioning feature.

Informational e-mail with noaction required.

203

The following ACH transactionwas rejected for a missing or

unqualified authorization record.No decisioning action was takenon this item. However, prior to

returning the item, anauthorization was located that

authorized the transaction.

Informational e-mail with noaction required.

204

The following ACH transactionwas previously rejected for a

missing or unqualifiedauthorization record. No

decisioning action was taken onthis item.

Informational e-mail with noaction required.

ACH Direct –Electronic Payment Authorization (EPA)

4

301

The PENDING RejectDecisioning action has been

processed and accepted for thefollowing rejected transaction.

Informational e-mail with noaction required.

302

The PENDING RejectDecisioning action has beendeclined for the transaction

detailed below. The transactionwas processed during this

collection cycle and therefore thepending action could not be

applied.

Informational e-mail with noaction required.

303An electronic authorization record

was added by KeyBankpersonnel.

Review the parameters to ensureaccuracy. This notice is generat-

ed anytime an “ADD” isperformed by Key personnel.

304An electronic authorization record

was deleted by Key personnel.

Review the parameters to ensureaccuracy. This notice is

generated anytimean authorization is “DELETED”

by Key personnel.

305An electronic authorization record

was maintenanced by Keypersonnel.

Review the parameters to ensureaccuracy. This notice isgenerated anytime an

authorization is“MAINTENANCED” by Key

personnel.

501

The pending maintenancerequest has been processedsuccessfully for the following

Authorization record.

Review the parameters to ensureaccuracy.

502

The pending maintenancerequest has been processedsuccessfully for the following

Authorization record. During thisprocessing cycle, the ‘Number ofAuthorizations’ parameter was

impacted. This pendingmaintenance request haschanged the ‘Number of

Authorizations’.

Review the parameters to ensureaccuracy.

ACH Direct –Electronic Payment Authorization (EPA)

5

Section 3: EPA Add (Adding an Authorization)

1. From the ACH Direct Main Menu, click Add under EPA.

2. Select the account in which the authorization is to be added.

3. Enter the required data as described below then click Submit.

a. How many transactions should be accepted with this Authorization?i. Single Use – To authorize only a single transaction, this value should be set

to 001.ii. Specific Number of Transactions – Enter the specific number of transactions

that should be authorized. For example, if the user wants to authorize 10transactions, this value should be set to 010.

iii. Unlimited – To indicate that an unlimited number of transactions should beauthorized, this value should be left blank.

b. Authorization Date Rangei. Begin Date – The date the authorization will become active.ii. Expiration Date – The date the authorization record will expire or will be

considered inactive. If the authorization should not expire type in 12/31/2099.

c. Maximum Amount – The maximum amount of the transaction(s) that can beauthorized using this authorization record.

d. Specific Amount – The specific amount of the transaction(s) that can beauthorized using this authorization record.

ACH Direct –Electronic Payment Authorization (EPA)

6

e. Transaction Type – Debit.

f. Company ID – The Company ID of the transaction Originator.

g. Company Name – The name of the company originating the transaction. NOTE –ACH Direct does not support the use of special characters such as &, @, #, etc.in the company name field.

h. Reference Number – Optional reference number to be contained within theindividual ID field of the incoming transaction detail record.

ACH Direct –Electronic Payment Authorization (EPA)

7

4. Confirmation of the EPA Authorization add will be displayed. To add another, clickAdd Another.

ACH Direct –Electronic Payment Authorization (EPA)

8

Section 4: EPA Search

1. From the ACH Direct Main Menu, click Search under EPA.

2. Select the account to search.

3. Select the account to search and input any of the available search criteria then clickSearch.

a. Company IDb. Reference Numberc. Begin Date (range)d. Expiration Date (range)e. Max Amount or Specific Amountf. Number of transactions remaining that can be authorized

ACH Direct –Electronic Payment Authorization (EPA)

9

4. The result will be a listing of the authorizations which met the search criteria. Toinquire, change or delete a particular authorization click in the selection box next tothe desired authorization and choose Inquire Selected, Change Selected or DeleteSelected.

ACH Direct –Electronic Payment Authorization (EPA)

10

5. Below is an example where the Inquire Selected has been selected. From thePayment Authorization Inquiry Detail screen the option to change or delete theauthorization is available.

ACH Direct –Electronic Payment Authorization (EPA)

11

Section 5: Changing an Authorization

1. To change, select Change Selected from the Search Results or Request Changefrom Inquiry Detail. Using the Payment Authorization Change screen update thedesired fields then click Submit Changes.

2. Click to confirm the modification requested.

ACH Direct –Electronic Payment Authorization (EPA)

12

3. Once completed, confirmation of the modification will be provided.

ACH Direct –Electronic Payment Authorization (EPA)

13

Section 6: Deleting an Authorization

1. To delete, select Delete Selected from the Search Results or Request Delete fromInquiry Detail. Using the Payment Authorization Delete screen click Submit Delete.

2. Click to confirm the deletion.

ACH Direct –Electronic Payment Authorization (EPA)

14

3. Once completed, confirmation of the deletion will be provided.

ACH Direct –Electronic Payment Authorization (EPA)

15

Section 7: Reject Decisioning

Anytime an e-mail is received advising of a pending entry, the option is available to loginto ACH Direct and make a decision to allow the transaction to be posted or returned.

There are three options available:

Accept—Allows entry to post to the designated account on the evening of theindicated return date

Refuse—Transaction will be returned to the Originator on the evening of theindicated return date

Pending—A final decision is not known at this time. Clients have until 7:00 PM ETon the indicated return date to make a decision regarding the transaction. If nodecision is made by that time, the transaction will be returned.

Some important tips regarding the decisioning of transactions:

It is important to note that any changes or additions to authorization records madeduring the acceptance session will only impact future transactions.

Decisioning may only be performed until 7:00PM ET on the indicated return date.

When selecting “Accept” a user is indicating that the transaction should be posted tothe indicated account and there will be no further review of authorization records.

During the acceptance process, users will be given the option to update an existingauthorization to ensure future transactions are authorized when received.

If the detail item is rejected because no authorization record was located, users willbe given the option to create an authorization for future transactions from the sameOriginator. Doing so will prevent future transactions from rejecting.

If you determine the entry should be returned, select the REFUSE option and theitem will be returned on the evening of the indicated return date.

ACH Direct –Electronic Payment Authorization (EPA)

16

Reject Decisioning1. From the ACH Direct Main Menu, click Reject Decisioning under EPA

2. Select the account to search

3. Select the account to search and input any of the available search criteria then clickSearch.

ACH Direct –Electronic Payment Authorization (EPA)

17

4. The result will be a listing of the rejected transactions which require action. To pend,refuse or accept a particular reject click in the selection box next to the desiredtransaction and choose Pending Selected, Refuse Selected or Accept Selected.

5. Once completed, confirmation of the chosen action will be provided.

ACH Direct –Electronic Payment Authorization (EPA)

18