RBC ACH Help Centre


Glossary of Terms


The following are some of the terms commonly used for ACH Direct Payments & Deposits. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A ABA Routing Number An ABA Routing Number is a nine-digit number that identifies a specific financial institution. This is the National Clearing System numbering system used in the United States. ACH (Automated Clearing House) ACH term used to describe electronic payments. Also referred to as Direct Deposits, Direct Payments, and Pre-Authorized Debits. ACH Format The ACH record format specifications described in the NACHA Operating Rules and Guidelines document are the accepted and warranted format standards for payments delivered through the ACH Network. Account Ownership Change An Account Ownership change occurs when you move your ACH Direct Payments & Deposits Service from one entity to another. When such action is taken on your ACH Direct Deposits Service, recalculations are performed on the pending payments belonging to all other ACH Direct Deposits Services that are still attached to the existing entity. By doing so it may release "in Excess" payments to "Valid". Recalculations are also done on the ACH Direct Deposits Service that have been moved to the new entity. By doing so it may cause some pending payments with a "Valid" status before the move of that ACH Direct Deposits Service to now be "in Excess ". You will be notified by email and the payments in Excess will be reported on the Daily Limit- Payment Details report. Addenda Record An ACH record type that carries the supplemental data needed to completely identify an account holder or provide information concerning a payment to the Receiving Depository Financial Institution (RDFI). Approval Authority A specific limit set up for approvers within your organization to release direct payments and deposits for processing. Approval Rules These are rules set by your organization, and define the number of approvers needed to authorize payments and deposits within specified dollar amount ranges. Approvers Those are the person(s) that have been authorized by your organization to approve direct payments and deposits for processing. Available Daily Limit for Client ID The sum of the Daily Limit and any Temporary Limit. This applies to RBC ACH Direct Deposits Service clients set up with a Daily Limit option. Authorized Signing Officers Authorized signing officers are the persons within your organization that have the power or authorization to sign on behalf of your organization.


B Backup Backup is the process within your own organization to copy your input files for safekeeping. Block or Block of Payments A set of payments in an input file that has a common Payment due date. Blocked File A blocked file is an input file that has been received and is blocked. For example, a file that cannot be processed because its File Creation Number is duplicated or contains invalid characters. Upon your instructions your input file can be either unblocked for processing or deleted.


C CCD (Corporate Credit or Debit) CCD is a Standard Entry Class Code (SEC) used to identify a Corporate Credit or Debit payment type. That is part of the ACH Company/Batch Header Record. Canadian Payments Association (CPA) This association is now referred to as Payments Canada. They are the national association that establishes the standards, rules and procedure for the interbank clearing of electronic entries for participating financial institutions in Canada. The system that direct payments and direct deposits flow through is referred to as the Automated Transfer System (AFT). Canadian Payment Association CPA-005 Format The CPA-005 record format specifications as described in the CPA Rules are the accepted and warranted format standards for payments delivered between financial institutions in Canada. Certificate Administrator The Certificate Administrator is appointed or sponsored by your organization's authorized signing officers to be responsible for issuing and revoking digital certificates specific to RBC Express. Centralized Designations Clients choosing not to have any subsidiary designations are termed Centralized. In this scenario, you have one control account that produces transaction files with the same Client Account Number throughout (i.e. on the Header, Detail records, and Trailer records). You also have one return account, which may be different from the control account. Client Client means a public or private sector organization using RBC ACH Direct Payments and Deposits Services. Client ID or Company ID This is the same as a Client Number or Client Account Number. Client Number or Client Account Number Client number and client account number have the same meaning. Both represent a unique client profile identification number that RBC Royal Bank assigns to each client. It is a 10 digit client number that contains a six digit basic number, followed by four zeros if there is no subsidiary. It is used to access your services. Client Support Centre Client Support Centre or Cash Management Client Support Centre is your contact for any assistance you may need with regard to your ACH Direct Payments or Direct Deposits Service. Client, You, and Your Client, you and your have equal meaning and refer to the Client or the Client's employees, representatives or agents using or operating the Service. Computer Centre The location where your input files are processed. There are 3 Computer Centres located across Canada – Ontario (OCC), Quebec (QCC) and British Columbia (BCCC). Contracts Contracts are groups of basic consumer or receiver information. It also stores contractual and historical information, such as: Original contract amount, Deposit amount, First payment amount, Regular payment amount, Final payment amount, Total amount paid to date, Number of Payments to date, Number of payments due, Frequency (weekly, bi-weekly, monthly, twice monthly, bi-monthly, quarterly, semi-annually and annually) This feature is located in RBC Express ACH Record Manager. Control Account The control account or deposit account is the account that is debited or credited with the proceeds of your valid and delivered direct payments and deposits. Control Branch The RBC Royal Bank branch where your account is located. This branch will handle all the financial aspects of your account. Correspondent Bank As part of the International ACH Transactions addenda records, if an ACH payment was processed through another Financial Institution, then the Correspondent Bank Addenda record should accompany the payment. Customer or Receiver The party receiving the proceeds of the direct deposit, or the party who will be debited with the direct payment, as ordered by the Client, is the Receiver. Customer Number or Customer Identification Number or Receiver Identification Number These terms have the same meaning and represent a unique number that you assign to identify each of your customers. That number can be alphanumeric and is limited to 19 digits for payees or recipients located in Canada and 15 digits for payees or recipients located in the United States.


D Daily Limit Your Daily Limit is the maximum total value of outstanding settlement obligations that RBC will assume for your organization. It is the maximum value of outstanding direct deposits that RBC has delivered, will deliver, or will have delivered in advance of your funding those direct deposits. RBC Royal Bank establishes your Daily Limit. A separate Daily Limit is established for each currency. Daily Limit Date The Daily Limit Date(s) spans from the Select Date of a direct deposit to its Value Date. In other words, it covers the days that it takes to deliver a direct deposit payment to the receiving financial institution to the day that the funds are available to the recipients. Data File Data Files are flat files containing information from your payment input file, payments that have been reversed and returned items. You may use these files to update your records in an automated fashion. Data Transmission The electronic exchange of information between two data processing points. Debits Debits or Direct Payments are electronic debit payment transactions or pre-authorized debits that represent the transfer or removal of funds drawn on specified payors’ account held at a financial institution. Deleted File A deleted file is an input file that has been received, is blocked or rejected and upon your instructions is deleted; the system will automatically delete the file and NOT process any transactions. Deposits Deposits or Direct Deposits are electronic credit payment transactions that represent the transfer or placement of funds to be deposited to specified payees’ accounts held at a financial institution. Detail records An ACH record type that carries the data needed to identify an account holder and provides banking information concerning a payment to be sent to the account holder at the financial institution. Destination Country The country that a customer payment is to be made. Payments can be made to either Canada or the United States. Destination Currency The currency that a customer payment is to be made. Payments can be made in either Canadian dollars (CAD) or US dollars (USD). Digital Certificate Instead of physical signatures, RBC Express uses electronic credentials to verify users. This is done through Public Key Infrastructures (PKI), a secure digital certificate technology that uses encryption keys to authenticate user identities. Each user, including Service Administrators, must have a digital certificate to gain access to the web-based services in RBC Express. Direct Deposits An ACH service that provides for the electronic transfer of funds directly into the account of a payee. Direct Payments An ACH service that provides for a method of collection upon authorization from the payor for the transfer or removal of funds drawn on specified payors’ account held at a financial institution. Refer to Pre-Authorized Debits (PAD). Dropped File A "dropped file” is an input file that has been received, is blocked for more than 2 business days and has not been deleted or unblocked, the system will automatically drop the file and NOT process any transactions. Due Date The date a payment is to be made.


E Electronic Payments Direct Payments or Deposits that are exchanged via Data Transmission between two data processing points. Electronic Payments Network (EPN) EPN is the RBC’s ACH Operator for payments that are sent to the United States for processing. Electronic Credentials Each Individual using RBC Express ACH Direct Payments & Deposits requires a digital certificate in order to gain access to services, which enables RBC to accept digital signatures as electronic credentials to replace physical signatures on paper documents.


F Field Specific information within a file layout that requires completion. Information must be supplied as instructed or it cannot be processed. File A group of ACH payments data information to be processed and sorted for delivery to financial institutions in Canada and the United States. File Creation Number This is a mandatory 4 digit number that you assign to your transaction file. The File Creation Number must be different from the previous 9 numbers submitted for processing. When submitting a test file, the FCN must be “TEST”. File Limit The file limit assigned by your organization is the maximum dollar value of each input file submitted for processing. If your file upon receipt exceeds this limit, the file will block and upon your authorization the file will be processed (unblocked) or deleted. Flat Files Flat Files are data files available to ACH Direct Deposits & Payments clients, which can be used to automatically update their systems or produce internal reporting. Data Files are available for Input Records, Returned Items and Reversed payments. Financial Institutions Any financial institutions qualified to receive any ACH entries that agree to abide by the CPA Rules and/or the NACHA Operating Rules and Guidelines.


G GRADS Service Account Number (GSAN) The Global Receivables & Disbursements Service Account Number (GRADS) uniquely identifies you within this system, by service. This 10 digit number is also referred to as the client Account Number and Company ID (described above) or GSAN number.


H Header record The Header record is the first ACH record type on your file layout that carries the data needed to identify the originator and the destination of the payments.


I IAT IAT is a Standard Entry Class Code (SEC) used to identify an International ACH Transaction Credit or Debit payment type. That is part of the ACH Company/Batch Header Record and is used for all payments that are destined to account holders in the United States. In Excess payments The sum of payments due for a given settlement date currently exceeding the available Daily Limit. This applies to ACH Direct Deposits Service only. Input Amount The amount of the payment that is in the currency of the service. Input Data Payment information sent to RBC Royal Bank for processing in a specified format. Input file A group of ACH payment information to be processed and sorted for delivery to various financial institutions. Invalid Transactions Invalid transactions are those that fail to pass RBC Royal Bank‘s data validation process.


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L Limit Available The unused portion of the available Daily Limit that is still available for a given date. This limit only applies to the ACH Direct Deposit Service. Limit Used Portion of the available daily limit reserved for the settlement of transactions due on this date.


M Mass Request A Mass Request refers to a request to be completed on a range of payments. Mass Reversals A Mass Reversal refers to a range of payments that have already been processed and delivered to financial institutions and such payments upon your authorization and within the required time deadlines are now being reversed on a best effort basis. Media A method of sending or receiving information. Data Transmission or RBC Express ACH Direct Payments and Deposits are the two media used for exchanging payment information.


N National Automated Clearing House Association (NACHA) The national association in the United States that establishes the standards, rules and procedures that enable financial institutions to exchange payments on a national basis. Non-Operating Subsidiary Only one control account can be designated for the parent and the subsidiaries. One control account oversees all subsidiaries’ accounts and their activities. One transaction file is produced by the client and covers all subsidiaries. The Client Account Number for the Header and Trailer records will be that of the Parent Client Account Number (XXXXXX0000), The Detail records will contain the various Subsidiary Account Numbers (XXXXXX0001, XXXXXX0002, etc). However a separate account may be designated for each subsidiary’s returned items. Reports are produced for the parent company. Non Sufficient Funds (NSF) A payment transaction that has been returned by the receiving depository financial institution with a return reason code of 901. Notification of Change (NOC) for USA-FI This applies to payment information received by a depository financial Institution in the United States (RDFI) to notify the originating depository financial institution (ODFI) that previously valid information for a receiver has become outdated or that information contained in a prenotification is erroneous. The standard entry class code is COR. Notification of change ( NOC) Notification of payment information change (NOC) received from financial institutions in Canada with regard to bank, branch and account number that occurs as a result of branch closures, mergers or acquisitions. NOC applies to both Canadian and US dollars accounts.


O Operating Subsidiary Under this designation each subsidiary can have a customized level of control. Separate transaction files can be produced for each subsidiary, but may be sent in with the same transmission. Each subsidiary must submit their file with their Client Account Number consistently throughout the file. A separate header, detail and trailer record must be provided. Each subsidiary may have a different control account from the parent client and each subsidiary nay have a separate return account designated for their returned items. An output report/data file can be produced separately for each subsidiary, or a file may be produced covering all subsidiaries. Originating Depository Financial Institution (ODFI) A participating financial institution that initiates payments at the request of its clients. It is the financial institution that is sending the payment. Originator As the party that initiates transactions, the Client is the Originator. Output Report Mandatory/Optional and On-Request reports that are produced as part of the ACH Direct Payments and Deposits Service. Those reports are then transmitted electronically to you or are available on RBC Express for viewing.


P PPD It is a Standard Entry Class Code (SEC) that is being used to identify a “Prearranged payment and Deposit Entry payment type used for personal payments destined to the United States. That is part of the ACH Company/Batch Header Record. Pass phrase A Pass phrase is a password that allows access into RBC Express. Each user has a unique Pass phrase to ensure optimal security. Payees A payee is the person that issues an ACH Direct payment and whose account is to be, or has been, credited with the value of that ACH Direct payment. Payment Due Date The date that funds are to be credited to or debited from the receiver’s account. The payment date is the same as the Value date only if we receive your payments in time for the regular scheduled select date. Payment Distribution Service (PDS) Payment Distribution Service refers to ACH Direct Deposit Service. Payment in Excess The sum of payments due for a given settlement date currently exceeding the available Daily Limit. This applies to ACH Direct Deposits Service only. Payment Register This is an optional report that is produced as part of the ACH Direct Payments & Deposits Service. It lists all valid payments and valid prenotes received on your input file. Payment Short Name The payment short name is a 15 digit field that is part of your company payment record to identify the originator of the payment. This field must clearly identify the originator of the payment through the use of a name that is known to and readily recognized by the receiver of the payment. This is the name that will appear on the receiver’s bank statements. If the Payment Short Name field is left blank, it will default to the client short name as indicated on your Client Profile. Payments Canada (Formerly known as Canadian Payments Association (CPA)) The national association that establishes the standards, rules and procedure for the interbank clearing of electronic entries for participating financial institutions in Canada. The system that direct payments and direct deposits flow through is referred to as the Automated Transfer System (AFT). Payor A payor is the person who authorizes the issuance of an ACH Direct Payment and whose account to be, or has been, debited with the value of that ACH Direct payment. Person A person means a natural person, member, business or other legal entity. Pre-Authorized Debits (PADs) Service Pre-Authorized Debits (PADs) Service refers to ACH Direct Payments Service. Prefund or Prefunding A service option that is available for the ACH Direct Deposit Service which requires you to fund your direct deposits in advance. The indicator on your client profile will be set up as “Prefund”. Prenotification A non-dollar entry (zero value) that may be sent by an originator to receiving depository financial institutions in the United States to alert that a live dollar transaction will be forthcoming and that verification of the receiver’s account number is required. Processing Date The processing date is the date that the file is run in the Computer Centre. Payment Details Specific information required to process a transaction to the receiver. Information will include such fields as name, bank number, branch number and account number. Public Key Infrastructures (PKI) A system that provides the basis for establishing and maintaining a secure and trustworthy networking environment through the generation and distribution of electronic keys and certificates. Parent client Relates to Operating and Non-Operating Subsidiary designations. The first profile opened is always the Parent client number. For example, 123456 0000. A Parent Client number always ends in four zeros – 0000.


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R RBC Standard Format (STD 152) RBC Royal Bank’s proprietary record format acceptable for submitting payments to financial institutions in Canada and the United States. For clients who process USA Destined payments on behalf of other Financial Institutions, it is recommended that you use ACH format to ensure all Correspondent Bank Addenda Records are available to you. Receiver The party receiving the proceeds of the direct deposit, or the party who will be debited with the direct payment, as ordered by the Client, is the Receiver. Receiving Depository Financial Institution (RDFI) Any financial institution qualified to receive payment transactions. Receiver Authorizations/Payor Agreements A written agreement authorizing you to make direct deposits or issue direct payments to an entity’s accounts at financial institutions in Canada or in the United States. Rejected File A rejected file is an input file that has been received by RBC could not be processed and must be re-submitted, if this file is not deleted, the system will automatically drop the file on the same day the input file is received and NOT process any transactions. Report Break The breakdown of a customer number into discreet segments for sub-totalling purposes. Report Roll-up This term only applies to Operating Parent and Subsidiaries. An output report/data file can be produced separately for each subsidiary, or may be produced for the Operating Parent covering all subsidiaries. Your client profile will need to be customized depending on your needs. Required Additional Limit The amount of additional daily limit required to permit full processing of payments in excess that are due for settlement on this date. Representment Re-issuing ACH Direct Payments returned as Non Sufficient Funds (NSF). Payments returned as “NSF” can only be represented once and must be represented immediately or within 20 business days. This service option only applies to RBC ACH Direct Payments Service. Return Account The account that will be debited or credited for the return of any payment transactions that could not be processed. Returned Items A payment transaction that is being returned to ODFI by the RDFI because it cannot be processed. Retry process Identifies a specific financial institution. In Canada this is made up of the bank and branch numbers. In the United States, this is the ABA Routing number. This is done every one the half hour until the correction occurs. The file will be dropped off on the end of the second business day after receipt of your input file. RSA SecurID^® Token Each user with payment approval authority will be issued a Security Token or RSA SecurID^® Token by RBC Royal Bank. This small device shows a unique, one-time sequence of 6 numbers that change every 60 seconds that is referred to as a Token Code or Token Value. RBC Express will ask for this sequence of numbers before payments can be approved.


S Sanction Lists These are lists of entities and individuals controlled and maintained by the U.S Government (United States Treasury’s Office of Foreign Assets Control “OFAC”) and Canadian Government (Office of the Superintendent of Financial Institutions “OSFI”) that prohibit financial institutions from providing financial services to those entities and individuals on those sanction lists. Screen or Screening A term used when we are screening, checking or comparing your payments destined to the United States and to Canada originating from a foreign country against the defined sanction lists as indicated above under “Sanction Lists”. Standard Entry Class Code (SEC) Three character code used within an ACH Company/Batch Header record for payments destined to the United States that identifies the type of payment. All non-tax payments destined to or received from the United States must have a SEC code of IAT. Security Token or RSA SecurID^® Token Each user with payment approval authority will be issued a Security Token or RSA SecurID^® Token by RBC Royal Bank. This small device shows a unique, one-time sequence of 6 numbers which changes every 60 seconds. RBC Express will ask for this sequence of numbers before payments can be approved. Service Service consists of the transfer of funds to specified payees (direct deposits) or consists of the processing of pre-authorized debits by RBC on behalf of the Client, drawn on specified payors (direct payments). Service Administrator A Service Administrator is responsible for setting up and managing how your organization uses RBC Express. This individual can authorize user access and set the level of user access within the system. An organization can appoint more than one level of user access within the system. An organization can appoint more than one Service Administrator. Set Intervals Set interval means occurring at specified, set or predictable periods or times. Select Date The latest date when RBC must deliver a direct deposit to the receiving financial institution to ensure they make funds available to the receiver on the next business day. For example, if a transaction is dated July 28, RBC must deliver the transaction to the receiving financial institution on July 27th to ensure that the receiver has access to the funds on July 28th. Files received after the Select Date will be processed for the next business day. In Canada, funds are made available to both consumers and businesses, while in the United States funds are only made available to consumers. Settlement obligations The maximum dollar value of payments that are due on a specific date that the bank will undertake to settle on your behalf. Subsidiary A subsidiary may be a branch or a department or other unit or service for which you require separate accounting and reports. Suspended Payment A suspended payment is a payment destined to the United States or to Canada originating from a foreign country that has been matched against the sanctions lists and is on hold until the investigation is completed.


T Temporary Limit It is an additional daily limit established for a specific period to accommodate provisional increases in the value of payments. You must contact your RBC Royal Bank Account Manager well in advance of when you will need the increased Daily Limit. Token Code or Token Value This is the 6 digit sequence of numbers shown on the Security Token or RSA SecurID^® Token every 60 seconds. For increased security, RBC Express requires users to enter two verifying credentials – a Passphrase and a token vale – for payment approvals. Transaction A transaction is an order from you to the Bank to issue either a direct deposit or a direct payment. Transaction Limit It is a maximum amount per payment assigned by our organization to reduce the exposure to accidental or unauthorized payments. Transmission The electronic exchange of information between two data processing points. Trailer Records The Trailer record is the last record type part of your file layout used to delimit the end of your file layout. The trailer record identifies the total number and the dollar values of all transactions. Two-Factor Authentication A requirement that the individual(s) in your organization assigned to approve a transaction or a batch of transactions require two credentials to digitally approve payment instructions. These credentials are commonly referred to as “something you know” (the individual pass phrase) and “something you have” (Token Value- RSA SecurID Tokens). The individual(s) will be prompted to enter those two credentials before payments can be approved.


U Unblocked File An unblocked file is an input file that has been received, is blocked due to various conditions such as File Creation number duplicated and upon your instructions is unblocked. After unblocking your input file, the system will automatically process your input file. User A User is an individual designated by the client as a holder of a digital certificate issued by RBC and who is authorized to act on behalf of the client. All RBC Express users must have an RBC Digital Certificate.


V Value Date The date when direct deposits are available to the receivers, which is also when you fund or settle the direct deposits. For direct deposits with a due date of today or in the past, the Value Date could be today or tomorrow. For ACH Direct Payment Service, the Value Date represents the date a payment is debited to the payor’s account and credited to your account. For payments with a due date in the past, this is the date received at the payor’s financial institution. Valid Transactions Valid transactions are those that successfully pass RBC Royal Bank’s data validation process. Validate The verification of certain fields on your input file to ensure that the specifications specified on the file layouts have been adhered to. It also includes validating bank number, branch transits and the format of the account number. It does not include validating if the account is in the name of the payee/payor.


W We, Bank, Royal Bank, Royal Bank of Canada, RBC and RBC Royal Bank We, Bank, Royal Bank, Royal Bank of Canada, RBC and RBC Royal Bank all refer to Royal Bank of Canada.


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