Last editedJan 20201 min read
Submitting Pre-Authorized Debit payments
If you choose direct access to Pre-Authorized Debit through a bank, you will need to learn about how to submit PAD payments that you collect for processing. Accessing Pre-Authorized through a payment provider normally means they will take on the submission process for you.
The submission process
You can submit payment requests to your bank by creating and uploading an Automated Funds Transfer (AFT) file, using the following process:
Create an AFT file with the required structure (details provided in next section)
Upload file to your bank according to their procedures
Wait for bank’s initial check to ensure required information is included before sending file to ACSS
Bank processes AFT file contents
Your bank will generally provide you with the required format to create the file. It's still useful to understand its structure, so we’ll explain this in more detail here.
Using the AFT file to submit payments
The AFT file contains payment instructions, in a format specified by your sponsor bank. We’ve outlined the main points below for Pre-Authorized Debit payments. Your bank may also have proprietary standards for file submissions, so we recommend you check these with them before submitting any files.
Each file will include at least 3 records:
Header record – Contains identifying information of the originator and date of file
Payment record – Lists pre-authorized debit payment item data
Trailer record – Provides totals for the preceding records in the file
Each payment item has a transaction code. Located on the customer statement line, these codes help identify what the payment is for. Transaction codes have no formal requirements, with most Pre-Authorized Debit payments using the ‘Miscellaneous’ code.
Commonly used transaction codes
|700||Business PAD||For B2B payments (i.e. to suppliers)|
|701–749||Commercial bill payment||For the payment of bills by businesses (e.g. utilities or taxes)|
|430-450||Bill payments||For bill payments by individuals (e.g. utilities or taxes)|
|470||Fees/Dues||For payments from individuals to associations or other organisations (e.g. sports clubs)|
|480||Donations||For payments from individuals to charities or non-profit associations|
Bank files sent through ACSS will contain notifications about circumstances such as payment failures. For example, you could receive a notification when a Pre-Authorized Debit is dishonoured, or to let you know about a Notice of Change (NOC). The latter provides updated information on a customer’s account details, so the originator can adjust records for future payments.
Your bank will forward any messages to you each working day. For returned or dishonoured items, you’ll be able to identify the reason by looking at the transaction code. Here are some of the most commonly used transaction codes for returned or dishonoured payments, and for customer initiated returns:
Transaction Codes for returned or dishonoured payments
|907||No Debit Allowed|
|908||Funds not cleared|
|912||Invalid/Incorrect Account No.|
|914||Incorrect Payer name|
Transaction Codes for Customer Initiated Returns
|915||No Agreement Existed|
|916||Not According to Agreement - personal|
|917||Agreement Revoked - personal|
|918||No Confirmation/Pre-notification - personal|
|919||Not According to Agreeement - business|
|920||Agreement revoked - business|
|921||No Confirmation/Pre-notification - business|