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December 2022

In this issue:
  • Note from Jim
  • Holiday Hours
  • High Dollar Reminder
  • New Client Set Up
  • Fraud Corner
  • Client Batch Limits
  • Get Paid Quicker
  • Featured Department
  • Income Opportunity
  • Employee Spotlight

Did you know?

Please be sure to use the most updated version of the Client Agreement (dated 7/22 at the bottom). Previous changes can also be found online.

Customer Support Tips

To view if your client has been set up, simply go to Reports > Other > Active Company Report.

ACH Rules

Stay up-to-date with the most current NACHA Rules. The NACHA Rules are available for FREE online by simply setting up a Basic User account. Click here.


Hear what customers have to say about Kotapay! Watch here.
From all of us at Kotapay, we wish you a happy holiday season! As we head into our 30th year, we are grateful to our customers and amazing staff. We appreciate the opportunity you have given us to be your payment processing partner. Looking ahead to 2023, we will continue to develop and grow our products and services as our industry changes while providing the best in customer support and service.
Thank you for your trust and the opportunity to earn your business every day.

Happy Holidays and continued success!

Jim Haug
Jim Haug
Director of Kotapay

Upcoming Holiday Hours and Non-Processing Days


Please plan ahead and allow an extra day for processing if the pay date falls on a federal holiday, which can be found here. ACH transactions cannot be dated for a federal holiday (no debits or credits to an account on that date).

DateHours of OperationProcessing Notes
Monday, December 26th
Christmas Holiday
Kotapay Operations is available 12-3 pm CT.
ACH transactions cannot be dated for December 26th.
Monday, January 2nd
New Year’s Eve (Observed)
Kotapay Operations is available 12-3 pm CT.
ACH transactions cannot be dated for January 2nd.

Be mindful that holiday bonus transactions may cause a delay

Kotapay’s policy regarding high dollar files

As a reminder, Kotapay’s procedures regarding payroll over $500,000 per company or $100,000 to an individual will require additional action on your part. The following options are available:

Please contact the Operations Department to make arrangements when sending large dollar files or if you have any questions.

To ensure everyone gets paid on time, click here.

Please allow 2-3 business days for new clients to be set up

The busiest time of year for new client set-ups is December and January so they may take longer than normal. Please allow 2-3 business days before sending files for new clients. We appreciate your patience. A few tips:

  • You will receive an email once your client has been set up or if there is additional information required to finish the client’s set up.
  • To view all your companies, view the Active Company Report (Reports > Other > Active Company Report)
  • As a reminder, a wet signature is required. A typed in signature isn’t acceptable.

REMINDER: ALL fields are required. Submitting complete and accurate paperwork will allow for a timelier client set up. Using e-contracts (Docusign) will also help to ensure everything is completed.

Fraud Corner: Fraud Increases During the Holiday Season

The end of the year is a busy time for everyone. Fraudsters know this and try to take advantage of the hectic schedule. A few things you should watch for:

  • Clients making unusual requests to process transactions they have never processed before.
  • Make sure all clients processing year-end bonuses are validated, especially if the bank accounts are new or never paid to before.
  • New client setups should always be reviewed carefully. More diligence is required as year-end is a popular time with fraudsters trying to push through fraudulent new client setups.
  • Year-end email scams targeting individuals, tax professionals and payroll processors. These scams try to steal employee data.

Click here to read our blog post.

Client batch limits are now available online

During Kotapay’s underwriting process, each processor is approved for batch limits. These limits also apply to each of your clients. We use limits as an additional way to protect customers from becoming victims of fraud as well as measure exposure.

What happens if my batch is over the limit?
If your batch is over the limit, the transaction will pend for review.

How do I learn what my limits are?
Your limits are available by viewing your Company Applications Report on the Kotapay website. Simply navigate to Reports > Other > Company Applications Report.

Can I change these limits?
These limits may be lowered or increased by request or decision of the Risk Department.

If you have any questions, please contact the Risk Department at risk@kotapay.com.

Red Payment button 

Get paid quicker!

Accept payments on your website. Kotapay can build you a custom payment portal to allow your clients to pay their invoice by credit card and/or ACH from the convenience of your website. Get started!

Featured Department: Returns

Returns Timeframe:

Did you know banks have two business days to return any debits or credits to Kotapay? You may not find out an employee’s check was returned for two business days after the pay date. Additionally, depending on the funding window your clients are set up on, we may not know if a debit to your client clears until after employees have been paid. Please be mindful of the ACH returns timeframe when working with your clients.

What is an Xcelerated Return?

Kotapay screens your transactions by routing and account number against a database of previously returned items. Once we get the initial return on a routing and account number with one of the below codes, we flag that account. If that account is used again, it kicks back in our system and does not process out to the receiving financial institution.

How do I know if a return is an Xcelerated Return?
If a return xcelerates you will be notified the business day before the effective entry date of that debit or credit on your Xcelerated Returns Report. The Xcelerated Returns Report is updated daily as our Operations Team sends their files. All xcelerated returns will show up on your Returns Report for the next business day. There is a column on the lefthand side of the Returns Report and will show a red asterisk if that is an xcelerated return.

If you would like to process transactions for routing and account numbers that have been returned as xcelerated, we will need resolution to remove the hold on the account. Please view the Help Topics section “Xcelerated Returns Resolution” for how to remove an xcelerated flag on a routing and account number. If you have any questions or concerns, please reach out to our Returns Department at returns@kotapay.com.

Earn Additional Income by Becoming Referral Partner

Kotapay and BASYS Processing have partnered for merchant processing services! Partnering with BASYS provides our customers industry-leading credit card payment processing solutions, accompanied by world-class customer support and a new referral partner program for you!

Our new Referral Partner Program allows you to earn 10% monthly residual income for each customer you refer to Kotapay for credit card processing services. As a trusted partner with your customers, it’s natural for you to share an opportunity for them to get the best in card processing and save on monthly processing fees. Once you have sent us the referral, your work is done! Basys Logo

Please contact our Sales Department on how to become a referral partner with Kotapay.


Employee Spotlight

Leanne is our ACH Risk & Compliance Manager and has been with Kotapay for 14 years. In her role, Leanne and her team underwrite and review Processors, assist customers to ensure we all stay in compliance and oversee our fraud anomaly detection systems along with helping to support customers who may have become victim to fraud.

In her free time Leanne enjoys running, biking, and exploring the outdoors.