As we near the end of second quarter, I’d like to take a minute to highlight a few of the exciting things we’ve been working on so far this year.

We’re excited to announce a new partnership with BASYS Processing for merchant services. This partnership brings a team of dedicated, knowledgeable support staff, a PCI Compliance Team and new terminal options we can provide for our customers. If you’re currently processing credit cards with us, you’ll be receiving more details soon. If you would like more information on getting started processing credit cards, please reach out to our Sales team at

Jim Haug, Director of Kotapay, has recently joined the Upper Midwest Automated Clearing House Association (UMACHA) Board of Directors. On the Board, he will help provide direction to the Association and it’s over 740 members throughout the Midwest.

We have also improved the Company Authorization Agreement. The agreement has been reduced to two pages with the terms and conditions of the agreement posted online. This will help reduce the number of old agreements received and updates you need to do. We’ve also removed the requirement for EIN verification. If you have any questions, please reach out to our Support Department.

Thank you for your continued trust in Kotapay.

Addie Nohr
Marketing Coordinator

Nacha Rules


When sending prenotes, the waiting period is three (3) banking days before submitting live transactions.

As a reminder, Nacha rules mandate a 3 day waiting period when sending a prenote before submitting live transactions. With this rule, when a prenote and a live entry are submitted with an effective entry date that is within three banking days of each other to the same account, the live entry will not be submitted to the network and will be returned as an Xcelerated Return (R97). To avoid a delay in processing, please allow a minimum of three banking days between the effective entry dates of the prenote and the live entry.

For example, if a live direct deposit transaction is sent with a posting/deposit date within three banking days of a prenote transaction to the same account, the employee will not receive their direct deposit.

When verifying the prenote / live transaction time frame, Nacha looks at routing and account number. If adding an additional person to an existing account (that you’ve previously sent live transactions to) there is no reason to send a prenote.

If you have any questions about this Nacha rule, please reach out to the Risk Department. If you have questions on sending prenotes, please ask for the Operations Department.

Upcoming Nacha Rules Change

Effective June 30th, 2021: ACH Originators and Third Party Senders with more than 6 million ACH entries/transactions annually, through all processing relationships, are required to protect deposit account information by rendering it unreadable (encrypted) when stored electronically. Read more about this Rules change.


Jolokia is now KotaConnect!

Jolokia has been updated to make processing ACH and credit card payments easier than ever before. KotaConnect is a secure (SSL), web-based tool to create and transfer electronic transactions. Manage ACH and credit card transactions, including single or recurring entries, without the added expense of software. Learn more!

Upcoming Holiday Hours and Non-Processing Days


Monday, July 5th is a non-processing holiday as the Federal Reserve Banks and Kotapay will be closed in observance of Independence Day. ACH transactions cannot be dated for July 5th. To avoid additional charges, please allow an extra day for processing.

Similar to other holidays, Kotapay’s Operations Team will be accepting files until 3:00pm CT on Monday, July 5th for processing on Tuesday, July 6th.

Earlier Same Day Settlement for Premium 4 Day Window

With our Premium 4 Day window, collected funds should be available to withdraw at 1:30pm local time.

Are you seeing the “Can’t Validate” error message when uploading files?

The “Can’t Validate” message means that the routing and account number within the file does not match the banking information within our system. It’s important to keep this information updated by submitting a Customer Information Revision Form. This online form is available under Documentation > Agreements

Fraud Corner: Six Tips to Help You Stay Protected

Payroll fraud is often overlooked but can be a serious threat to businesses and their employees. Fraudsters are constantly coming up with new ways to steal money from businesses, and it’s up to all of us to stay vigilant. Creating written procedures and diligently following them cuts down on the risk to your organization. Read our tips to help stay protected.


Pay key on keyboard 

Add a Pay-Now Button to Your Website

Kotapay will design and build a custom payment portal to allow you to accept credit card or ACH payments via your website. Get started!


Earn Revenue by becoming a Credit Card Reseller

Our merchant processing reseller program can provide your company with a new revenue stream by adding credit card processing to the list of services you can offer your clients. It’s as easy as sending a referral to the Kotapay Sales Team, while you focus on what you do best.

Contact our Sales Department to learn more about becoming a credit card merchant services reseller.