Frequently Asked Questions

What’s the difference between SEC codes CCD and PPD?

When depositing to a Company/Corporate Account, the correct SEC code is CCD

When depositing to a Consumer/Individual Account, the correct SEC code is PPD

SEC codes are part of the Nacha file format that help identify transactions. It is very important that the correct SEC Codes are used, as this directly affects the return timeframes involved, and can be a Nacha Rules Violation if not used correctly.

What happens if I need to process a same day ACH transaction?

To process a same day ACH transactions, please contact our Support Department.

What happens when my client has an NSF?

In the event of an NSF, multiple options for resolution are available and Kotapay communicates with you to determine which option works best.

I already submitted my file but need to make a change, how can I do that?

An online edit can be done to remove an individual, remove a batch, change account numbers, or the amount for an individual as long as the amount doesn’t increase. This can only be done if the file is still warehoused at Kotapay. To do an online edit, simply go to Other Services > Online Edit.

What is Wire Drawdown and how does it work?

Wire drawdown is a good funds solution used to help eliminate risk. A one-time set up to have transactions funded via automated wire drawdown. Thresholds can be set up to programmatically determine if file will be funded as a wire or ACH. Contact the Support Department to learn more.

Does Kotapay process for the medical marijuana industry?

While it may be legal to sell marijuana in some states, it’s still not legal at the Federal level. Kotapay’s policy states that it will not process payments for businesses that distribute marijuana, including medical marijuana. For more information read our Policy on Marijuana.  

Does Kotapay process for the hemp or CBD industry?

Kotapay will process for hemp or CBD companies provided all state, USDA & FDA requirements are met and the company is not involved in any illegal activity.

What information does Kotapay require from my clients?

Kotapay requires a three-way agreement between you, your client and Kotapay. The information required follows guidance set forth by Nacha, FinCEN and other regulatory bodies.

How long does it take for my client to be set up with Kotapay?

Once a completed agreement is submitted, they are typically set up within 3 business days, depending on the volume of agreements in the queue. We ask that you submit client agreements at least 5 days prior to submitting any transactions. Incomplete agreements will cause a delay in set up. Client agreements are set up Monday-Friday between 8am-5pm CT.

How does Kotapay satisfy the money transmitter licensing requirements?

Requiring a money transmitter license can be a daunting and financially burdensome task for any company holding their customer’s funds. Financial Institutions are exempt from money transmitter licensing requirements. Therefore, as a division of a bank, processing with Kotapay relieves its customers from money transmitter requirements. Learn more by reading our Money Transmission Licensing White Paper  

What is the timeframe between sending prenotes and live transactions?

3 banking days. Prenotes are used to verify if a bank account is a valid account at a receiving bank. If the account is not valid, the receiving bank will choose to either return or correct the information within 2 banking days. Therefore, if a prenote is sent, live dollar transactions are not allowed to that account until the third banking day after the effective entry date. This ensures a return or corrections notice was not received.

An employee is stating they didn’t receive their pay, what actions should I take?

Your options are:

  1. Wait two business days to see if the receiving bank sends a return or a corrections notice. If they return the funds, Kotapay will automatically reimburse the client’s account the following business day of the return. If they send a corrections notice that means the receiving bank deposited the funds to the corrected bank account provided on the Corrections Report.
  2. Process a reversal request to try to pull the funds back from the account. Per Nacha Rules, you can attempt a reversal to an account up to 5 banking days after the settlement date. This cannot be guaranteed.

How do I make changes to a client’s banking information or processing window after set up?

The Customer Information Revision Form is an online form (available under Documentation) that can be used for the following:

  • Update their bank account
  • Add an additional bank account
  • Change their processing window
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