Payflow ACH Payment Service Guide For Professional Use Only Currently only available in English. A usage Professional Uniquement Disponible en Anglais uniquement pour l’instant.
Payflow ACH Payment Service Guide Document Number: 200000.en_US-200906 © 2009 PayPal, Inc. All rights reserved. PayPal is a registered trademark of PayPal, Inc. The PayPal logo is a trademark of PayPal, Inc. Other trademarks and brands are the property of their respective owners. The information in this document belongs to PayPal, Inc. It may not be used, reproduced or disclosed without the written approval of PayPal, Inc. PayPal Europe S.à.r.l. & Cie, S.C.A.
Contents Chapter 1 Signing Up for Payflow ACH Payment Service . . . . . . . 7 How To Sign Up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Retrying Return Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Chapter 2 About ACH Payments . . . . . . . . . . . . . . . . . . . . 11 Benefits of ACH Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 How Does ACH Work? . . . . . . . . . . . . . . . . . . . . . . . .
Contents RCK Notice Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 RCK: Retention of Item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 RCK Formatting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Summary of TEL Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Legal Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 TEL Eligibility . . . . . . . . . . . . . . . .
Contents Example POP Debit/Sale Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Example ARC Debit/Sale Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Example RCK Debit/Sale Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Example WEB Debit/Sale Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Example WEB Credit Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Example Inquiry . . . . . . . . . . . . . . . . . . . . . . .
Contents 6 Payflow ACH Payment Service Guide
1 Signing Up for Payflow ACH Payment Service IMPO RTANT: Be sure to read the steps involving account setup even if you are already enrolled for a Payflow ACH Payment account. The Payflow ACH Payment Service enables you to process payments through the ACH network, allowing you to request a credit or debit from a customer’s checking or savings account at a low transaction cost. You can use existing depository financial institution relationships to accept ACH payments from customers.
1 Signing Up for Payflow ACH Payment Service How To Sign Up N O T E : To support both payment formats, you must register for a separate Payflow ACH Payment account for each format. Business-to-Business Payment Format Account Business-to-Business format accounts support payments for which the target bank account belongs to a business. These Cash Concentration or Disbursement (CCD) payments are authorized in a paper transaction with offline authorization.
Signing Up for Payflow ACH Payment Service How To Sign Up 1 – A recurring Debit/Sale payment and authorization is not provided over the Internet. – A Business-to-Consumer Debit/Sale payment and authorization is not provided over the Internet or over the telephone or it is not a reprocessed check.
1 Signing Up for Payflow ACH Payment Service Retrying Return Payments Retrying Return Payments To help you manage returns, specify whether you want PayPal to retry payments that result in either of the following return types: z z Insufficient funds, Result code R01. The available and/or cash reserve balance is not sufficient to cover the dollar value of the debit entry. Uncollected funds, Result code R09.
2 About ACH Payments The Payflow ACH Payment Service enables you to electronically collect payments from your customers for either single-entry or recurring payments by directly debiting your customers’ checking or savings accounts. The most common uses of ACH are online bill payment, mortgage and loan repayment and direct deposit of payroll. ACH payment is an efficient and cost-reducing alternative to paper checks and credit cards.
2 About ACH Payments How Does ACH Work? The following steps occur for an ACH payment: Payflow ACH Payment performs the payment in two parts. In this example, a Debit/Sale payment, the Payflow ACH Payment service first moves the money from your customer's bank account and then moves the money to your bank account. 1. A customer visits the biller’s Web site. After customer authentication (user name and password), the biller’s Web server presents the billing information. 2. The customer reviews the bill.
About ACH Payments How Does ACH Work? 2 Schedule of Submission for Settlement Because the ACH network operates only on banking days (not on banking holidays), PayPal settles at 7 p.m. the night before each banking day: Sunday, Monday, Tuesday, Wednesday, and Thursday at 7 p.m. Payments submitted Thursday after 7 p.m. are not sent for settlement until Sunday at 7 p.m. If Monday is a banking holiday, then payments are sent for settlement on Monday at 7 p.m.
2 About ACH Payments ACH Terminology ACH Terminology TABLE 2.1 14 ACH terminology ACH Operator An ACH Operator is a central clearing facility that provides distribution and settlement of electronic payments. ACH Operators clear debits and credits electronically, rather than through the physical movement of checks. Currently there are four ACH Operators: the Federal Reserve System, which clears approximately 80% of all ACH payments, Visanet ACH, New York ACH, and American ACH.
About ACH Payments ACH Terminology TABLE 2.1 2 ACH terminology Inquiry The Inquiry function returns the consumer-side result. You can run an Inquiry against a Debit, Credit, or Void payment type. You can look up the information either by submitting a PNREF in the ORIGID field or by submitting the CUSTREF with the value that you created while submitting the payment. NACHA National ACH Association. Rule-making standards body for the ACH Network and other payments systems. See www.nacha.org for details.
2 About ACH Payments ACH Terminology TABLE 2.1 16 ACH terminology SEC Code Standard Entry Class code. Three-letter code that uniquely identifies the type of ACH payment (for example, TEL). TEL Telephone-Initiated Entry — Single-entry Debit/Sale with verbal telephone authorization by the consumer. See “Summary of TEL Requirements” on page 22 for other requirements. Payflow ACH Payment Service PayPal is a “third party processor,” originating ACH payments on behalf of the biller.
3 Summary of Authorization Requirements Before submitting an ACH payment, you must first obtain authorization from the customer to debit their bank account for the amount due. The following summary of authorization and other requirements is abstracted from ACH Compliance Manual: How to Comply with ACH-Related Rules and Regulations, copyrighted 2003 by NACHA, and available from NACHA at www.nacha.org.
3 Summary of Authorization Requirements Summary of ARC Requirements Maintaining the Authorization Agreement You must retain the authorization for a period of two years following the termination or revocation of the agreement. CCD and PPD Credit Authorizations You need not request an authorization for a credit.
Summary of Authorization Requirements Summary of POP Requirements z z z z 3 The original payee name is to appear in the Company Name Field of the Company/Batch header. Check serial number is placed in the Check Serial Number field. Individual name is optional for the Individual Name Field, but if the field is used, the field can only be used to either: The consumer’s name or; A reference number, identification number or code that you use to identify a particular transaction.
3 Summary of Authorization Requirements Summary of POP Requirements POP Authorization Requirements The merchant must obtain authorization of the payment through compliance with NACHA guidelines and a copy is to be provided to the customer. The authorization is required: z To be in writing, signed or similarly authenticated by the Merchant. z To be identifiable as an ACH debit authorization. z To clearly state the terms. z To state that the check will not be processed.
Summary of Authorization Requirements Summary of RCK Requirements 3 POP Returns R03, R17, and R07 are not applicable return codes for a POP transaction. A merchant will need to develop procedures to handle POP returns, as the consumer’s name has not been captured. Returns for NSF can be retried up to two more times. Summary of RCK Requirements The RCK (Re-Presented Check Entry) format is used to represent a returned check, through the generation of a single entry ACH debit.
3 Summary of Authorization Requirements Summary of TEL Requirements RCK Notice Requirements The merchant must provide notice to the check writer prior to resubmitting via ACH, of the intention to submit electronically. The notice must clearly state the terms of the Re-presented Check Entry policy. RCK: Retention of Item The merchant must retain a copy of the front and back of the item for seven years from the settlement date of the RCK entry.
Summary of Authorization Requirements Further Reading z 3 A relationship is defined as either there being a written agreement in place or the customer has purchased goods or services from the Merchant in the last two years.
3 24 Summary of Authorization Requirements Further Reading Payflow ACH Payment Service Guide
4 How Payflow ACH Payment Works This chapter describes Payflow ACH Payment in detail. In This Chapter z “ACH Payment Flow” on page 25 z “Timetable for a Typical ACH Payment” on page 26 z “ACH Payment Types” on page 29 z “Retrying Returned Payments” on page 30 z “Notifications of Change” on page 31 ACH Payment Flow PayPal breaks each debit or credit payment into two parts—one with the customer/target bank account, and one with your bank account.
4 How Payflow ACH Payment Works Timetable for a Typical ACH Payment Timetable for a Typical ACH Payment This section presents several example timetables. Example of a Successful Business-to-Business Debit/Sale Payment This timetable describes a typical successful Business-to-Business sale/debit payment, in which a customer pays a company with an ACH payment, and the Payflow ACH Payment account is configured for three posting days. Day 1 The customer initiates payment and you submit a payment to PayPal.
How Payflow ACH Payment Works Timetable for a Typical ACH Payment 4 Day 2 The ODFI submits the payment to the ACH Network operator (Federal Reserve). The customer bank account is debited. This is the first day of the three posting days. Day 3 PayPal receives a return for the customer debit from ODFI. Returns occur for a number of reasons. See “NACHA Return Status Codes” on page 50. Assume that this return is not retried. The payment status shows the return code indicating the failure.
4 How Payflow ACH Payment Works Timetable for a Typical ACH Payment Day 7 The ODFI submits the payment to the ACH Network operator (Federal Reserve). your bank account is debited for the returned customer payment.
How Payflow ACH Payment Works ACH Payment Types 4 Day 2 The ODFI submits the payment to the ACH Network operator (Federal Reserve). Your bank account is debited. This is the first day of the three posting days before depositing into customer bank account. Day 3 This is a wait day. Day 4 This is the third day of the three posting days. PayPal initiates the customer side of the payment. The payment is batched at the end of each banking day at 7 p.m. See “Payment Batch Settlement Time” on page 25.
4 How Payflow ACH Payment Works Retrying Returned Payments Void A Void payment cancels a Debit/Sale payment. A Void payment requires the Original Payment ID of an earlier Debit/Sale payment. You can Void any unsettled payment (status P02 or P04). You cannot void a Void request. Prenote Prenote refers to a Prenotification payment that you can use to verify bank account validity. Prenotification payments do not transfer any funds.
How Payflow ACH Payment Works Notifications of Change 4 Payment Cycle With Retries Disabled Upon submission for settlement, the payment status is P02. After submission of settlement files the status changes to P03. When an NSF return happens on the consumer bank account, the status changes to R01. The payment now ends and your bank account is not credited.
4 32 How Payflow ACH Payment Works Notifications of Change Payflow ACH Payment Service Guide
5 Using PayPal Manager to Perform ACH Payments This chapter provides instructions for submitting a single ACH payment using PayPal Manager. For details on using PayPal Manager, see PayPal Manager online help. For instructions on submitting ACH payments using the Payflow Pro SDK, see Chapter 6, “Using the Payflow Pro SDK to Perform ACH Payments.” IMPO RTANT: You must comply with NACHA rules regarding how you obtain permission from the bank account holder to submit an ACH payment.
5 Using PayPal Manager to Perform ACH Payments Submitting a Single ACH Payment TABLE 5.1 Manual ACH Payments page fields(Continued) Field Description Bank Account Number Savings or checking account number. Bank Account Type Account type: Savings Account or Checking Account. Amount US dollar amount of the ACH payment. Specify the exact amount to the cent using a decimal point—use 34.00, not 34. Do not include comma separators—use 1199.95, not 1,199.95.
Using PayPal Manager to Perform ACH Payments Submitting a Single ACH Payment TABLE 5.1 5 Manual ACH Payments page fields(Continued) Field Description Shipping Information (Fill in this section only if the shipping information differs from the billing information.) Ship First Name First Name for shipment. Ship Last Name Last Name for shipment. Ship Address Street address (number and street name) for shipment. Ship City City for shipment. Ship State State for shipment.
5 36 Using PayPal Manager to Perform ACH Payments Submitting a Single ACH Payment Payflow ACH Payment Service Guide
6 Using the Payflow Pro SDK to Perform ACH Payments This chapter describes the process of performing ACH payments using the Payflow Pro SDK. For complete information on using the SDK and on payment request syntax, see Payflow Pro Developer’s Guide. Response values are described in Chapter 8, “Responses to ACH Payment Requests.” Information on testing payment appears in Chapter 7, “Testing ACH Payments Using the Payflow SDK.
6 Using the Payflow Pro SDK to Perform ACH Payments ACH Payment Parameters TABLE 6.1 38 ACH payment parameters (Continued) Parameter Description Required? Type Length ACCTTYPE Customer's bank account type: Savings (S) or Checking (C). Yes Alpha 1 AMT Dollar amount (US dollars) Yes, unless PRENOTE AUTHTYPE The type of authorization received from the payer. Defaults to CCD for B2B format accounts. Defaults to PPD (standard customer authorization method) for B2C format accounts.
Using the Payflow Pro SDK to Perform ACH Payments Example ACH Payments TABLE 6.1 ACH payment parameters (Continued) Parameter Description Required? Type Length FIRSTNAME Bank account holder's first and last name. Yes Alphanumeric 30 N O T E : Even though the parameter name uppercase indicates only the first name, this single parameter holds all of the person’s name information (both first and last name, at a minimum). PRENOTE PRENOTE=Y indicates a prenotification payment with no amount.
6 Using the Payflow Pro SDK to Perform ACH Payments Example ACH Payments Example Credit Payment Use TRXTYPE=C and the ORIGID of a previously submitted ACH payment to submit a Credit payment. You must perform a Credit payment before the first settlement.
Using the Payflow Pro SDK to Perform ACH Payments Example ACH Payments 6 "TRXTYPE=S&TENDER=A&ACCT=6355059797&FIRSTNAME=Susan Smith&ACCTTYPE=C&ABA=09 1000019&AUTHTYPE=WEB&AMT=42.00&PARTNER=PayPal&VENDOR=SuperMerchant&USER=Sup erMerchant&PWD=x1y2z3" Example Debit/Sale Response RESULT=0&PNREF=V63D15597698&RESPMSG=Approved Example WEB Credit Payment Use TRXTYPE=C and AUTHTYPE=WEB and the ORIGID of the previously submitted ACH WEB Debit/Sale payment to submit a Credit payment.
6 Using the Payflow Pro SDK to Perform ACH Payments Logging Payment Information RESULT=0&TRANSSTATE=6&CUSTREF=&ORIGRESULT=0&STATUS=P04&RESPMSG=Settle failed RESULT=0&TRANSSTATE=1&CUSTREF=&ORIGRESULT=1&STATUS=P15&RESPMSG=PNI front end edit failed RESULT=0&TRANSSTATE=6&CUSTREF=&ORIGRESULT=0&STATUS=P02&RESPMSG=Pending, waiting to settle RESULT=0&TRANSSTATE=8&CUSTREF=&ORIGRESULT=0&STATUS=P03&RESPMSG=Submitted for settlement Example Void Use TRXTYPE=V and the ORIGID of the previously submitted ACH payment to V
Using the Payflow Pro SDK to Perform ACH Payments Logging Payment Information 6 In addition, PayPal strongly recommends that you log all payment results (except for check information) on your own system. At a minimum, log the following data: z PNREF z Payment Date z Payment Amount If you have any questions regarding a payment, reference the PNREF (also called the transaction or payment ID).
6 44 Using the Payflow Pro SDK to Perform ACH Payments Logging Payment Information Payflow ACH Payment Service Guide
7 Testing ACH Payments Using the Payflow SDK This chapter describes the process of testing ACH payments using the Payflow SDK. For complete information on using the SDK, see Payflow Pro Developer’s Guide. You can safely skip this chapter if you have a Payflow Link account. Responses to payment requests are described in Chapter 8, “Responses to ACH Payment Requests.” Testing ACH Payments — General Information The test procedures presented in this chapter produce consumer-side results.
7 Testing ACH Payments Using the Payflow SDK Simulating a Successful Settlement Simulating a Successful Settlement All properly formatted test payments with RESULT=0 show an initial status of P02. At 7 p.m., the status changes to P03 (settlement). Submit bank account number 1111111111 in a Debit or Credit payment to receive the associated status code. The status is updated when the payment settles.
Testing ACH Payments Using the Payflow SDK Simulating NSF Retries 7 R status codes are described in “NACHA Return Status Codes” on page 50. TABLE 7.
7 Testing ACH Payments Using the Payflow SDK Simulating NSF Retries TABLE 7.3 48 Generating a retry (Continued) Condition of Payment Status Code NSF Retries Timeline Payment settled P03 N/A 7 p.m.
8 Responses to ACH Payment Requests This chapter describes the contents of the responses to ACH payment requests. In This Chapter z “ACH Status Codes” on page 49 z “ACH NOC Codes” on page 52 z “Payment Responses” on page 53 z “RESULT Codes and RESPMSG Values” on page 54 ACH Status Codes This section describes the values returned for ACH payment requests. Payflow Status Codes STATUS values starting with the letter P are Payflow-specific values that describe handling by PayPal. TABLE 8.
8 Responses to ACH Payment Requests ACH Status Codes NACHA Return Status Codes Status values starting with the letter R are NACHA-specification reject and return reason codes that indicate that the consumer portion of the payment has been returned (typically a closed bank account, invalid bank account, insufficient funds, or dispute). If a payment is unsuccessful, PayPal usually gets the return message from the ACH network within 2 to 4 business days of payment submission. TABLE 8.
Responses to ACH Payment Requests ACH Status Codes TABLE 8.2 NACHA return codes(Continued) Code Description Detail R16 Bank account frozen Funds in bank account are unavailable due to action by RDFI or legal order R17 File record edit criteria Fields rejected by RDFI processing (identified in return addenda) R18 Improper effective entry date Entries have been presented prior to the first available processing window for the effective date.
8 Responses to ACH Payment Requests ACH NOC Codes TABLE 8.
Responses to ACH Payment Requests Payment Responses TABLE 8.3 8 Notification of Change codes (Continued) Code Reason Description C07 Incorrect transit/routing number, bank account number and payment code Changes required in three fields indicated C09 Incorrect individual ID number Individual’s ID number is incorrect C10 Incorrect company name Company name is no longer valid and should be changed.
8 Responses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8.4 Payment responses common to all payment types Field Description Type Length STATUS All STATUS values (with the exception of values starting with the letter P) are NACHA (National Automated Clearing House Association) specification reject and return reason codes. Values starting with the letter P are Payflowspecific values describing handling by PayPal. STATUS codes are described in “ACH Status Codes” on page 49.
Responses to ACH Payment Requests RESULT Codes and RESPMSG Values 8 RESULT Values for Transaction Declines or Errors For non-zero Results, the response string includes a RESPMSG name-value pair. The exact wording of the RESPMSG (shown in bold) may vary. Sometimes a colon appears after the initial RESPMSG followed by more detailed information. TABLE 8.5 Payflow transaction RESULT values and RESPMSG text RESULT RESPMSG and Explanation 0 Approved 1 User authentication failed.
8 Responses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8.5 56 Payflow transaction RESULT values and RESPMSG text (Continued) RESULT RESPMSG and Explanation 13 Referral. Transaction cannot be approved electronically but can be approved with a verbal authorization. Contact your merchant bank to obtain an authorization and submit a manual Voice Authorization transaction. 14 Invalid Client Certification ID. Check the HTTP header.
Responses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8.5 Payflow transaction RESULT values and RESPMSG text (Continued) RESULT RESPMSG and Explanation 100 Transaction type not supported by host 101 Time-out value too small 102 Processor not available 103 Error reading response from host 104 Timeout waiting for processor response. Try your transaction again. 105 Credit error.
8 Responses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8.5 58 Payflow transaction RESULT values and RESPMSG text (Continued) RESULT RESPMSG and Explanation 118 Invalid keywords found in string fields 119 General failure within PIM Adapter 120 Attempt to reference a failed transaction 121 Not enabled for feature 122 Merchant sale total will exceed the credit cap with current transaction. ACH transactions only.
Responses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8.5 Payflow transaction RESULT values and RESPMSG text (Continued) RESULT RESPMSG and Explanation 601 Cybercash Query Error 1000 Generic host error. This is a generic message returned by your credit card processor. The RESPMSG will contain more information describing the error.
8 Responses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8.
Responses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8.
8 Responses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8.
Index A ABA Routing Number test 45 account formats Business-to-Business 8 Business-to-Consumer 8 account number for testing 45 account settings 9 ACH 14 Operator 14 overview 11 parameters 37 ACH Payment server 37 ACH payments timeline 26 ACH Receiver 14 agreement service 10 ARC payments 8, 14 requirements 18 authorization format 17 NACHA resource 23 requirements 17 B B2B see Business-to-Business B2C see Business-to-Consumer bank accounts changed account information 52 Banking Day 14 Bu
Index N NACHA authorization requirements 17 regulations 17 status codes 50 NOC 15, 31 see Notification of Change non-reference credits 9 Notification of Change 15, 31, 52 O ODFI 15 Operator ACH 14 Originator 15 ORIGRESULT value 53 P Payflow ACH Payment Service enrolling 7 payment logging 42 payment response ORIGRESULT parameter 53 PNREF parameter 53 RESPMSG parameter 53 RESULT parameter 53 STATUS parameter 54 payment types ARC 8, 14 CCD 14 POP 8, 15 PPD 8, 15 Prenotification 15 RCK 8, 15 TEL 8,
Index service agreement 10 service enrollment 7 settings account 9 exceeding original credit amount 9 maximum credit amount 9 maximum debit amount 9 payment limits 9 retrying returns 10 settlement schedule 13 status codes NACHA 50 STATUS value 54 T TEL payment type 8, 16 TEL payments requirements 22 test server 45 testing ABA Routing Number 45 account number 45 payments 45 server 45 transaction response PNREF parameter 54 RESPMSG parameter 55 RESULT parameter 54 U uncollected funds retrying 10 V Void pa
Index 66 Payflow ACH Payment Service Guide
