Learn more about ACH fraud and how to protect your computer systems from cyberattacks. Beef up your security systems with NatPay's security solutions!

The digital space has evolved over the last couple of decades as many day-to-day activities have migrated online. For example, people can now conduct even the most complicated financial transactions over the internet in seconds, with maximum convenience.

However, technological advancements have also paved the way for digital security attacks, like automated clearing house (ACH) fraud. Ransomware, a type of malicious software used to take hostage of an individual’s or organization’s devices, is on the rise. When activated, ransomware uses encryption to take control of the devices. The cybercriminal then asks for a ransom payment in exchange for the decryption key.

Cybersecurity has quickly become one of the biggest concerns of companies and organizations across the globe.

Startling insights from the Identity Theft Resource Center’s 2021 Q3 survey found that 1,291 data breaches were recorded between January and October in 2021 alone.

Increased connectivity has made it easier for cybercriminals to hack and attack organizations and individual devices.

With ACH fraud and ransomware attacks becoming rampant, it is crucial that businesses take the necessary steps to protect themselves from cybercriminals. As more companies adopt hybrid and global work models post COVID-19, they will require stronger security measures to protect their decentralized workforces.

Install Anti-Malware

For obvious security reasons, ransomware is particularly devastating to companies that handle sensitive data. Ransomware attacks can reveal crucial financial information, putting clients and other businesses at risk of financial attacks and fraud.

If attacked with ransomware, financial institutions run the risk of information leaks, data destruction, loss of funds, and customers’ information being compromised. On top of the monetary impact, they also lose consumer trust, which is critical in finance.

Additionally, paying the ransom does not ensure that an organization’s data will be recovered. Your computer systems are at the mercy of your attackers, and they can still leak or destroy precious files if they wish. Most organizations have a downtime of at least a week following a ransomware attack, which significantly impacts business operations and client relations.

CNA Financial, one of the largest insurance companies in the United States, experienced a ransomware attack in March 2021. It was only able to fully restore its data two months later, in May—after paying a $40 million ransom to regain system control!

Financial institutions need to adopt more robust security measures to protect their and their customer's data, such as installing an effective and efficient anti-malware program. Especially in the case of hybrid teams, remote employees may put your systems at risk by unconsciously exposing their work devices to malware. Anti-malware programs can detect malicious software and provide solutions to protect your devices and system.

Use Firewalls to Prevent Unauthorized Access

Firewalls are another tool that can boost security for financial institutions. Firewalls act as a protective barrier against potentially harmful internet traffic. Using a set of established security rules, firewalls analyze incoming and outgoing traffic to scan for any malicious activity and promptly block traffic they deem harmful. Firewalls have been the first line of defense in network security for over 25 years.

Firewalls lend you an extra security measure against cybercriminals and make it difficult for them to access your data. These security defenses can prevent backdoor access, ACH fraud, spam attacks, and remote login hijacking.

While ACH payments are arguably one of the more secure ways to facilitate payments online, this does not mean they are completely safe from cyberattacks. Security breaches can leave financial institutions vulnerable to ACH fraud. Firewalls can provide institutions yet one more layer of security.

Run Regular Security Tests and Checks

When it comes to cybersecurity, you can never be too safe. Regular security tests are important to ensure that your protective measures are up to date. Cybercriminals can exploit even the smallest vulnerabilities as an entry point to take over your company’s whole system.

Penetration testing, also known as ethical hacking, is a mode of securities checks used to evaluate system vulnerabilities. Penetration tests examine how prone your computer network is to hacks, which you can use to determine the security measures you should implement. This prevents security breaches like bogus invoice payments.

Strengthen Email Security to Protect Your Finances

Along with your basic network controls, poor email security can also leave you vulnerable to cyberattacks. Many cybercriminals use emails to infiltrate financial institutions, and a single click can allow hackers to take over your whole system.

Security education for your employees is key to preventing cyberattacks and ACH fraud via email. If your employees are not well-versed with computer security best practices, the door is wide open for a hacker to slip in thanks to an erroneous response to a phishing email. You should also use active email security systems to help users determine the legitimacy of emails they receive.

Protect with NatPay Secure Solutions

As a financial institution, robust security measures are crucial to your business. Protect your ACH transactions by working with a secure, trustworthy payment processor like NatPay. A leader in the ACH processing industry since 1991, NatPay stays at the forefront of digital security technology.

Reach out to NatPay today to learn how you can best protect your data!

Looking to optimize your business transactions? Consider ACH payments. At the electronic forefront of payments, the ACH network has a lot to offer.

Whether you prefer using cash, checks, debit cards, or credit cards, you can become a victim of transaction fraud or data security breaches. According to the Association for Financial Professionals, 40% of companies reported that fraud attempts have been on the rise since the onset of the COVID-19 pandemic.

While automated clearing house (ACH) payments have made things easier in the hyper-digital age, electronic transactions also present a wealth of opportunities for fraud attacks. As such, it’s important to understand how ACH payments work in order to implement effective fraud protection strategies for your organization.

What is an ACH Transaction?

ACH transactions run through the automated clearing house (ACH) network, an electronic funds-transfer system created to facilitate digital payments in the United States. Money transfers directly from one bank to another without the need for checks, wire transfers, cash, or credit cards.

ACH transactions often take the form of direct deposits and direct payments. One can use these transactions to pay bills online, pay vendors, or receive payments. Businesses can also use the ACH network for recurring deposits, such as payroll.

ACH payments accounted for 26.8 billion transactions in 2020 alone. This is an 8.2% increase compared to 2019 numbers. According to a report published by the National Automated Clearing House Association (NACHA), business-to-business (B2B) payments (for vendors, bills, and other transfers) accounted for 4.4 billion of these transactions.

Meanwhile, direct deposit of salaries, wages, benefits, and assistance payments accounted for another 8 billion.

This increase in ACH transactions comes as no surprise, considering the number of benefits businesses can reap. ACH payments enable:

1. Faster transfers. According to NACHA guidelines, ACH debit transactions must be settled within one business day (two business days for credit transactions). As such, funds transfer shockingly fast. This translates to more efficient operations and timelier transactions.
2. Lower processing fees. NACHA states costs can range from $0.20 to $1.50 per transaction. In most cases, ACH processors compute this based on a fixed percentage, but there are providers who offer flat fees.
3. More convenient processing. ACH payments occur online, so there’s no longer a need to go to the bank to settle transactions. As an added benefit, the process also eliminates paper invoices and checks, which can be difficult to keep track of.

How Do ACH Payments Work?

Every ACH transaction involves five key parties:

1. Originator: The consumer, business, or organization that initiates the transaction.
2. Originating Depository Financial Institution (ODFI): The financial institution that receives the payment on behalf of the originator, and forwards the payment to an ACH operator.
3. ACH Operator: The central clearing facility that receives entries from the ODFI and forwards them accordingly. Currently, there are only two of these facilities—the Federal Reserve Bank and the Electronic Payments Network.
4. Receiving Depository Financial Institution (RDFI): The financial institution that receives an ACH transaction and directs it to the receiver's account.
5. Receiver: The consumer, business, or organization to whom the originator intends to send the payment.

ACH transactions are quite straightforward. Say you needed to pay a vendor for supplies you ordered for your business. In this case, the process will start when you (the originator) initiate a direct payment or direct deposit with your bank (the ODFI). Once you’ve made the payment, your bank will then batch your ACH transaction with other ACH transactions, which it sends out in intervals throughout the business day.

These transactions are then received by the ACH Operator. Once all transactions have been sorted, they are forwarded to the correct RDFI ( in this case, your vendor’s bank). The RDFI then posts your payment on your vendor’s account (the receiver).

Implementing an Effective Risk Management System for ACH Payments

The direct bank-to-bank system makes ACH payments more secure than traditional options such as checks, cash, and credit/debit cards. However, it is not completely immune to fraudulent activity. It is important to have policies and internal protocols in place to help you mitigate the risks associated with ACH transactions.

Here are some risk management guidelines to consider for your ACH transactions:

• Establish an authorization protocol and approval workflow to make sure only reviewed and verified payments are processed
• Create an authorized user list to control who has access to your payment portals and can initiate ACH transactions
• Make one-time authorizations your payment default, particularly for vendors with whom you don’t regularly transact
• Perform regular account maintenance, making sure to review account changes finalizing money transfers
• Schedule regular audits to keep tabs on unusual or out-of-pattern activity
• Specify value limits for each authorized employee

The aforementioned aside, you can also consider employing ACH blocking and filtering services to reinforce your reconciliation procedures. Keep up with NACHA’s quarterly updates to stay abreast of the latest developments in security recommendations.

Mitigating Risks of ACH Payments with NatPay

ACH payments, like any other payment, have their advantages and disadvantages.

While the process itself can make transactions more secure, one cannot control what ACH facility and bank employees do with your data. Computer failures, power interruptions, and systemic risks also always play a part in data loss, duplication, or alteration during the transaction.

These aside, however, ACH payments remain a great alternative to traditional payment methods. ACH payments are fast and convenient, and they can reduce errors common during cash, check, and credit card transactions.

With some policies in place to protect against ACH-unique threats, you’ll find this method is the superior method. Or, if you don’t want to go through the task of monitoring ever-changing safety protocols yourself, consider pairing with a third-party payment processor, like NatPay.

Founded in 1991, NatPay is a leader in the payment processing industry. From payroll direct deposits to e-invoicing, the platform provides secure and timely services for your business. NatPay is HIPAA-compliant and insured through three major insurance carriers, so you can rest assured that every transaction is as secure as possible. Are you ready to update and secure your payment methods?

Reach out to NatPay for more information today.https://natpay.com/white-paper-library/Understanding-ACH-Payments-for-Fraud-and-Risk-Assessment-download.html

Visit our White Paper Library to download this article: Understanding ACH Payments for Fraud and Risk Assessment

Digital payment fraud has been on the rise since the start of the COVID-19 pandemic. Find out how you can mitigate risk in your ACH transactions.

Although automated clearing house (ACH) transactions are generally considered difficult to breach and safer than check or cash payments, evidence shows that fraudsters increasingly target ACH transactions. Ignoring the consequences of this potential threat can have major implications for your business.

A global study on occupational fraud and abuse found that typical fraud cases last 14 months before detection, causing an average monthly loss of $8,300. Certified fraud examiners estimate that companies lose 5% of revenue to fraud annually.

And nearly one-third of fraud cases occur in part because of a lack of internal control. However, employee fraud awareness training and the use of targeted anti-fraud controls are on the rise. To further mitigate risk, businesses can implement structures and processes for detection and prevention.

In every company, fraud prevention should start with management. Your business must commit to a culture of integrity and honesty, implementing a formal code of conduct. Studies show that companies conducting fraud awareness training for employees are more likely to receive tipoffs through formal reporting means, such as an anonymous whistleblower hotline.

Management can also discourage fraud internally by establishing a positive environment, reasonable expectations, and incentive programs to ease temptations of abusing the system. Finally, considering the size and quantity of ACH transactions in general, businesses need to ensure that they—and their third-party partners—have strong anti-cyber theft strategies in place.

Multi-Layered Fraud Prevention Measures

There is no one cure-all to prevent fraud in your business. The most effective fraud prevention strategy will layer a number of different solutions. Process controls, screening engines, flexible analytics—all of these combine to form a comprehensive barrier against fraud.

Considering the increase of fraud attacks since the start of the COVID-19 pandemic, a robust, multi-layered prevention strategy is a must for businesses. An increase in remote work and shopping throughout the pandemic multiplied opportunities for digital fraud. Many businesses relaxed security protocols to enable employees to work from home and adjust to new technologies on short notice. This presented an opportunity for both external hackers and internal fraud. In addition, multiple billion-dollar relief measures implemented hurriedly, with low oversight, created abundant fraud opportunities.

To enhance cyberattack resilience, strict password protocols should form the basis of any company’s digital operations. Proper credential management and regular password changes can also limit potential exposures. Keeping a dedicated computer for banking prevents insiders from accessing funds and data without authorization. In addition, all information should be backed up and stored off-site.

You should assess the legitimacy of all online requests—including internal communication, partners, and vendors requesting sensitive information—regardless of how authentic they seem. This especially applies to time-sensitive or urgent requests.

ACH payment security allows for more digital security measures than check or cash transactions. For example, ACH transitions hinge on unique Payer Unit Numbers (PUN) for processing, and transfer only happens once authorized by the user. Some processes also feature end-to-end encryption, using a locked algorithm, and two-factor authentication. This ensures the data is undecipherable if intercepted during transmission. While ACH payments, like any system, have their pros and cons, they are undeniably the safest transaction method available.

Establish a Strict Fraud Prevention Policy

Every organization should implement a strict fraud policy demonstrating the company’s commitment to an anti-fraud culture. A policy that establishes clear post-discovery procedures can ensure that fraud attempts are dealt with effectively, every time. By explicitly defining fraudulent actions and consequences, companies ensure that all staff and third parties are clear about unacceptable behavior.

A company fraud policy should include:

• Clear definitions of fraudulent actions, as well as the responsibilities expected for fraud management
• Formal procedures in the case of suspected fraud
• Statements clarifying explicit investigation, prosecution, and reporting to the appropriate authorities in any case of fraudulent activity
• Options for employees to report any suspicion of fraud, and procedures to follow in such cases

Review your fraud policies regularly, and confirm that your whole staff is aware of any updates. Fraud prevention starts at the top, but it is a team effort.

Secure an SSAE 18 Audit Certification

With increasing fraud, insider scandals, and external hacks, the demand for third-party regulation, protection, and proof of security compliance is high. Accordingly, the American Institute of Certified Public Accountants (AICPA) Auditing Standards Board issues SSAE 18 audits, to verify compliance with financial reporting security protocols.

An SSAE 18 audit certification helps financial institutions establish trust with their clients. Considering the high level of sensitive information financial institutions traffic in, an independent audit proves to clients that systems and controls are secure and effective. A third-party auditor will also spot inefficiencies or areas for improvement within your service organization that you may not have picked up on. Although the initial audit is lengthy, obtaining a regular SSAE 18 certification will save time and money in the long run.

Process ACH Transactions Securely

As online payment opportunities continue to grow, so do fraudulent opportunities. Payment fraud not only costs businesses monetarily. It can also damage a solid reputation in an instant, affect your business’s operating ability, and influence regulatory compliance. All these dangers considered, it makes sense to pair with a third-party ACH processor you can trust.

NatPay has been a leader in the payment processing industry for decades. With secure distribution solutions that cover everything from employee payroll to taxes to vendor transactions, NatPay can help protect all of your business’s payments.

Contact us today to see how you can eliminate risk while providing flexible payment execution.

Visit our White Paper Library to download this article: Best Cyber Theft Protection Protocols for ACH Transactions.

When deciding on secure ACH solutions for your business, some tools are stronger than others. Secure your digital payments and documents with NatPay.

While the internet has given us the gift of conducting many of our daily transactions digitally, the security of automated clearing house (ACH) transactions should not be taken for granted. After all, the management of business transactions, paychecks, electronic wires, and digital documents is a critical part of your business operations. With the wrong tools, your company’s financial status can quickly descend into chaos. You need to find ACH solutions that stand out from the crowd, and safeguard your systems with only the best.

For example, NatPay has been a leader in ACH and digital document distribution for 30 years. The company launched in 1991 with a goal to spearhead the efficiency of direct deposit for employee payroll. As technology developed, NatPay sprinted alongside it. In 2000, they launched the first electronic paystub, branded EZStub.

In 2007, they followed up with their software-as-a-service (SaaS) Doculivery suite of document service solutions. From e-invoicing to tax forms, paperless HR to online pay stubs, sending those important business documents has never been this efficient and secure.

NatPay is ready to prove that when it comes to ACH solutions and secure document distribution, some tools are stronger than others. With over 300,000 unique clients nationwide, NatPay is a solution you can trust to secure your payment processes, every step of the way.

Payroll Direct Deposit

What really makes an ACH provider stand out from the pack of possible solutions? Thinking through the little details, so that you don’t have to. NatPay offers a variety of payroll direct deposit solutions, so you can decide which best accommodates your business model and employees.

Not much is more important than taking care of your employees, and that means ensuring pay goes out on time and accurately. NatPay has simplified this process for you. Showcasing some of the leading technology in direct deposit, this ACH Direct Deposit Plus solution is a simple, web-based system that takes the struggle out of payment processing. NatPay integrates seamlessly with your payroll software, processes and schedules payments on time, every time, sets payday reminders for employees, and minimizes hidden direct deposit bank fees. You can even select from a number of payment options, like pay cards, to better accommodate staff needs!

ACH Distribution

Of course, your business ACH transactions won’t end with payroll. In addition to direct deposit for employees, those who pair with NatPay can expect other valuable ACH distribution tools like tax payments, expense reimbursements, vendor payments, and more. NatPay’s same-day ACH payment options expedite processes faster than the normal time frame. When you need to send funds quickly, this ensures that the process is easy and accessible. NatPay also adheres carefully to NACHA guidelines, so you can be sure all your payments are in regulatory compliance without concern.

ACH transactions expedite processing times; they also save you money. The cost of printing just one check averages around $1.30. Once you add the cost of envelopes and mailing, printed checks are not just outdated—they are costly! NatPay’s simple and easy-to-use electronic payments end up saving you in business operational expenses.

Online Pay Stubs and Tax Forms

While NatPay specializes in ACH solutions, they also offer secure document distribution and management services. Ensuring assets like pay stubs and tax forms are securely managed, easy to send, and accurate is a top priority for any HR department.

With NatPay, document management and distribution have never been easier. Online pay stubs are yet another way to let your employees know you care. Easy access to digital pay stubs whenever they need them—and email and text notifications about new pay stubs—make a world of difference.

You can also count on safety and security when it comes to the storage of these important documents. Robust encryption and the most up-to-date security software ensure that employees can access pay stubs quickly and efficiently without the stress of information falling into the wrong hands.

Plus your tax forms get the same security treatment as pay stubs! NatPay makes it easy to save time and money when it comes to tax time with Doculivery. Upload, process, and electronically add data to tax forms in a flash. In fact, you can automate your entire yearly tax process! Talk about taking the stress out of tax season.

Invoices, Statements, and Billing

The perks of Doculivery don’t end with pay stubs and taxes. NatPay’s services make going paperless a no-brainer with all aspects of your business operations.

The service simplifies invoicing, making it quick and easy to request payments and send online statements via secure email. This simplifies access to statements, reduces business mailing and shipping costs, and improves overall customer satisfaction.

Once invoices and statements have been received, NatPay extends the same easy-to-use solutions to billing processes as well. Click-to-Pay allows recipients to fulfill payments right away, via the same secure ACH system. All it takes (as the name implies) is the click of a button.

Lockbox expenses, printing, paper costs, and more—there are so many costs that come with paper billing. NatPay eliminates these costs by automating the process. As the world makes a wholesale shift to digital life, most vendors expect some sort of electronic payment option. With NatPay, you can count on quick, easy, and secure online payments that satisfy every customer and vendor.

ACH Solutions with NatPay

Next-level solutions and a passionate team of professionals have made NatPay a leader in the ACH processing industry. Businesses want tools that make operations simple, easy to use, and seamless. NatPay is here to deliver and has been for three decades.

NatPay builds payment solutions that can suit any business’s needs, no matter what sector. Serving clients ranging from retail to education, to healthcare, to government agencies, there’s an ACH solution ready for every industry. What are you waiting for?

Reach out to NatPay and level up your payment processes today!

Visit our White Paper Library to download this article: Buyers Beware: Not All ACH Solutions Are Created Equal

Same-day payroll processing can elevate your business methods. Choosing a reliable ACH provider makes all the difference for your business’s reputation.

Once upon a time, direct deposit was just a nice-to-have bonus for employees. But now, it’s such a common practice, it’s nearly a requirement for businesses. With direct deposit as the norm for payroll processing now, your ACH provider partner is all the more important.

An unreliable payment method can mean delayed or inaccurate checks for employees—and mistakes like these damage relationships with employees, which hurts business reputations. Once a company has a bad reputation as an employer, it becomes more difficult to retain workers and attract new talent.

Choosing a responsible ACH provider can help avoid risks such as these and provide a quick, secure, and accessible payment method.

Simplifying Payroll Management

Paper-based management systems are wasteful and costly. Even as more and more processes go digital, many companies still operate with cumbersome and vulnerable paper bookkeeping. Aside from productivity slow-downs, paper also requires physical storage and creates landfill waste. The best way for companies to avoid payroll management hassle is to use ACH same-day payroll processing.

Same-day ACH payroll processing can make your business’s payroll management system more secure with quicker payments and electronic documentation. The instantaneous nature of payment also clamps down on the risk of fraud.

ACH processing also comes with the added benefit of online record-keeping, which allows you to access important information from any internet-ready location. Using a high-tech document management system like NatPay’s Doculivery allows you to keep meticulous records of these ACH transactions—it’s far more effective than a file cabinet.

Doculivery offers e-documentation for every part of the payment process. Whether it's W-2s and 1099s or electronic pay stubs and invoices, Doculivery provides digital forms for all your financial paperwork needs. A robust document managing system will streamline your payroll management more than ever imaginable.

ACH Same-Day Payroll Processing Is Convenient

Manual payroll processing offers so many opportunities for error. Businesses must worry about tax compliance, record-keeping compliance, data security, fraud prevention, and paying contractors, among other concerns. Keeping track of all these factors manually is time-consuming, and time is money, which means it cuts into your business’s profits. Same-day payroll automates much of this process to expedite payment.

This automation also saves your business the risk of fees and fines. Failure to pay federal payroll taxes on time often results in hefty penalties. The IRS will also hit your business with fees for tax-return errors, or if there’s a substantial understatement of the taxes owed. Automated payment processing removes human error from the equation, guaranteeing mistake-free payment. This means you can rest secure in the fact that your taxes are all in compliance with regulations and on time.

Employee Benefits from Same-Day Payroll Processing

While same-day payroll processing can help your business avoid financial penalties, it also bolsters productivity. Late payroll directly hurts employee morale—and when workers are disgruntled, productivity suffers.

Almost every state has laws in place to ensure workers get paid on a regular biweekly basis. Should an employee choose to take action, they have the right to file a claim against you, which could result in investigations and litigation—possibly even a forfeiture of their business license. And after all that, the business owner is still responsible for missing funds, fines, and penalties as well.

In addition to avoiding labor disputes and tax penalties, same-day pay can also help alleviate the financial strain workers are experiencing during the Covid-19 pandemic. In addition, direct deposit limits the number of physical transactions your employees must engage in—a health courtesy in the current climate. Employees benefit from expedient, hygienic compensation. And when your workers are happy, your business will see the benefits.

Expediting Same-Day Payroll Offers A Competitive Advantage

As digital payment software creeps into every part of our lives—think of the ubiquitous nature of apps like Zelle, Venmo, and PayPal—people have grown accustomed to digital payment methods as the norm. Accordingly, workers expect compensation as quickly and conveniently as possible. Any business that wants to stay competitive must consider same-day payroll.

Benefits like convenient, quick payroll processing are especially important in today’s market. The current labor-friendly job market (according to the U.S. Bureau of Labor Statistics, the job openings rate sat at 6.9% as of December 2021) puts workers in control. Businesses have to offer more robust perks to attract and retain talent in these conditions. Taking steps like converting to ACH same-day direct deposit signals that you care about your employees getting their money on time. This in turn builds your reputation as a good employer.

NatPay’s Payroll Processing Provides Efficiency and Convenience

The businesses that thrive are those that remain at the forefront of change. Digital payroll processing is here to stay and can save companies resources, build profit, and bolster reputation. Make the switch as soon as possible if you want to remain competitive in the labor market!

However, managing and executing a payroll system—even a digital one—can be a heavy lift. When establishing your digital payment system, rather than managing it yourself, turn to a reputable third-party expert for assistance.

NatPay has been a leader in the payment processing industry for 30 years now and continues to provide innovative payroll and document managing solutions for thousands of ACH clients. No need to stress about compliance, labor disputes, or complicated bookkeeping. NatPay’s digital solutions have you covered. Reach out to a representative and see how a digital conversion can elevate your business today.

Visit our White Paper Library to download this article: ACH Same-Day Payroll Processing: Show Me My Money!

Electronic document delivery makes it easy, fast, and safe to store and share information online. Replace old paper data with NatPay’s Doculivery.

The average business spends approximately $20,000 per year on unnecessary document-related costs which can be easily avoided with online document management delivery.

And even as we transition to a digital world, the vast majority of businesses are still toiling with vulnerable and error-prone paper processes, with around 50% of a knowledge worker’s time spent on document preparation. But wait, it gets worse, and let’s not paper over the cracks—nearly a fifth of lost productivity at work occurs due to document management problems, which again, can readily be resolved by digitizing your document management system.

Automated document systems have become a key business requirement. These digital document delivery systems come with new security, collaboration, and analytics features, and can considerably ease the work of maintaining streamlined information processes for businesses. Document delivery systems decrease the costs associated with sending data such as invoices or statements, while increasing speed, security, and compliance.

Electronic document delivery makes for a cleaner, modern, and robust method to handle information. The need to transition to electronic document delivery has thus become undeniable. The migration from paper to digital can save businesses millions of dollars, while also increasing customer satisfaction rates.

As another advantage, a digital document solution makes audits a snap. These document management systems increase security not only for auditors but also for customer data. Storing sensitive information on paper exposes it to risks that digital tools can protect against, including theft.

In addition to all of the above advantages for your business, using an automatic document delivery system also decreases our burden on the planet. Replacing paper with electronic systems can prevent deforestation, as well as limit the amount of refuse in landfills. Digital tools also require less power generation than paper production.

The Problem with Paper-Based Document Management Systems

Consider all the important documents that constitute the essence of any business – financial reports, employee agreements, project contracts, and invoices are a few of these records that come to mind. Now think about how these vitally-important documents are managed. Are they stored in an unlocked filing cabinet? Are some on your desk right now? Do the documents have to be transported manually and signed by hand?

Paper-based document management systems have several disadvantages. But the main flaw is scant security. Threats that every paper-based document management system is vulnerable to.

Humans can make mistakes, a problem that becomes more pronounced when data is recorded on paper. And there’s one more thing we imperfect beings are susceptible to— misplacing things. How many times have you lost valuable work time looking for a document that’s been misfiled or misplaced? Ever had so much as a drop of water spilled onto a document? It's likely that all information on the page will be rendered unreadable. In addition to being ruined by moisture or fire, ink absorbent paper slowly fades with time due to exposure and aging processes which make these documents even more difficult (if not impossible) to read in their original state after being stored in an archive system for years.

A digital repository replaces filing cabinets allowing users secure storage space while also providing easy retrieval capabilities. Furthermore, employees may have more unauthorized access to papers than to secure digital documents.

Paper-based document management systems also slow down operations impacting productivity. And when employees need to print pages for their work, the business needs to pay not only for the paper, but also for ink or toner, printers, and other devices. These costs can quickly add up. Employees may overlook or fail to complete compliance tasks if they have to deal with those tasks manually. Digital document systems can automate much of this work, ensuring regulatory compliance.

It takes several minutes and several dollars to process an average document, even onsite. And that’s when things go right. Errors can be costly, and organizations can very well spend more time managing their documents than drawing value from them.

Laboring with a paper-based system sends the wrong signal to the public as potential customers see such businesses as being out of step with the times. Going paperless can save you time and money, while making your workers’ lives easier and increasing customer satisfaction and retention. It also gives you instant information on the progress of your data.

Transitioning to Electronic Document Delivery

Transitioning from a physical document storage system to a powerful document management system has enormous benefits for society and businesses alike. The decrease in paper usage, thanks to digital tools that facilitate efficiency and profitability, are just a few ways these advancements can help to streamline business operations.

With efficient access no longer limited by physical limitations like availability or storage space, it is possible now to have critical information at your fingertips 24/7 without fear it will get lost due to any mishaps along the way – even if you're not around during work hours anymore.

Improved safety and efficiency in terms of accessing or sharing documents is just one example of how electronic systems have an edge over their hard copy counterparts. However, implementing this kind of change isn't always easy as some may think – especially considering the time commitment needed from employees on your team who need access rights across new platforms.

The process of preparing, scanning, and indexing documents into an electronic DMS will likely involve multiple employees. Certain manual aspects of this task may be best suited for a clerk or entry-level administrative employee while other more complex tasks might require input from higher-level employees. Assigning specific people to take ownership of this project ensures accountability which is crucial when undertaking a project of this magnitude.

In offices that deal with large volumes of documents, it may be more manageable to transition the critically important documents first and schedule later dates for the less-critical ones. Start off with a broad selection for electronic document management. This allows employees to get familiar with the new system, and helps you stay organized while narrowing down which documents should go where. By focusing on a smaller set of records at first, employees can get better organized and find their own natural rhythm for doing tasks while using the new system.

The new electronic DMS is more than just a storage system for documents. It presents an opportunity to review and weed out those you don’t need. Managers may feel more comfortable handling certain document classification tasks personally. It’s important to dispose of these only after any necessary compliance period by using secure disposal methods. Managers may also want to provide input into naming conventions as well as tagging best practices.

Once you’ve determined which documents need to be cataloged and which will make up the first wave, you can turn over physical document preparation tasks. Assess document quality, repair damaged documents if possible, and separate documents by size, shape, and other characteristics to consider while scanning.

All this data will be stored in a system called the central location, which employees or managers can access to review documents on demand. Not too long ago, this was accomplished by hard disks with great volumes; however, thanks to technology and an increase in broadband Internet services, cloud-based solutions are now the preferred option.

A feature of online document management systems that traditional systems cannot compete with is collaboration. Not only can people send each other information instantly, but they can also work on the same document simultaneously. The system manages access, securely allocating privileges as necessary. This allows employees within an organization to work smarter together, as well as collaborate with external partners and even customers.

Setting Up an Online Document Management System

The cloud storage system for document management systems is usually customized to meet the needs of each company. In any case, it's typical to allow restricted access through a user mechanism and password which can be additionally protected by security measures such as encryption or digital signatures; and even then, only certain users are granted permission.

Thanks to these systems, the deletion of files is practically impossible even if there's a cyber attack that eliminates information. If you encounter any issues, they are more easily resolved than with paper, as you have backups, traceability, and recovery tools.

During the planning stage of setting up an online document management system, consider the classification that you’ll want to use for documents. This may include categories appropriate for your work, along with processes that connect those documents. Also, consider which people in which organizations will be granted access to these documents. Storing metadata (data about data) for each document can render your data far more useful. You also may want to find any documentation activities to automate, as this can save considerable time. An online document management system comprises a secure database server, with encryption protocols for transmitting data. It also has to comply with regulatory requirements for payroll and taxes, among other legal functions. If you have specific document needs for compliance, you can customize an electronic document management system.

Version control tracks the different iterations of the document as people work on it. Using this feature in an online document management system enhances accountability while making data easier to manage. You also can use templates to facilitate the creation of consistent documents. These tools are adaptable to any organization’s needs and generally easy to use.

NatPay’s Doculivery is a high-tech, high-touch online document management service that incorporates a unique set of adaptable modular components that can be customized to meet your needs.

Automate Your Entire Document Management System with National Payment

An online document management system can save you time, money, and effort (and headaches). It eliminates the numerous hassles of managing paper documents, including errors and losses. Instead, you have a fast, safe, effective tool for enhancing your processes. Customers expect digital documents. Partnering with an industry leader like NatPay can help you to exceed those expectations with a robust system that can grow with your organization.

Doculivery consolidates data into a unique web-based tool accessible from any internet-ready location. Electronic documents are created and delivered in less time and at far less expense than traditional paper models. Doculivery's versatile design also allows system modifications designed to meet regulatory recordkeeping requirements.

From E-statements, E-bills, and electronic pay stubs to online W-2s, 1099 forms, and automated fillable forms, Doculivery manages it all securely, enabling users to quickly and easily produce documents required for audit, regulatory, and legal purposes.

NatPay is an innovator in the online document solutions industry with over 25 years of information distribution experience. Contact NatPay today and see why over 30,000 clients across the nation trust NatPay to manage their online document portfolio.

Visit our White Paper Library to download this article: Doculivery — Redefining Enterprise Document Delivery

Your payment processor should be releasing immediate payments, answering your after-hour emergency queries, and taking care of ACH audits. Find out more here!

From managing accounting and taxes to internal treasury processes and budgets, payroll departments play a significant role in keeping almost every aspect of your company rolling forward. Considering the department's responsibility of paying wages and salaries correctly and on time, ensuring records are accurate, and adhering to federal compliance laws, it only makes sense that this job is performed by professionals you trust and can count on.

Since banks are involved in such a major part of the financial management process it only makes sense that they would offer such a service…or does it?

Banking ACH services sprouted as a convenience spin-off option for most banking institutions. Since they’re already part of the process, why not add an additional service of mild value to complete the process full circle?

Essentially, this would be like having your car washed and (since they’re already busy with your car), asking the washers to fix the engine as well. You simply won’t do this because those doing the washing are not mechanics.

Banks Own the Process, so Why Not…?

There is no one size fits all solution for any aspect of your business, and that holds true for banking as well. Clients often think that since banks are so close to the 'distribution lines' of the ACH network, their payroll and payment processing systems must be top-notch, but that's rarely the case.

Your bank specializes in loan processing, wealth management, and credit accounts. They aren’t professionals when it comes to managing your company’s payroll. In addition, with so many other functions they are unlikely to give your business the personal attention it needs to ensure no mistakes are made, compliance is accurate, and details are attended to.

Can you reach your bank at 1 a.m. on a Friday when a problematic payroll batch goes through? You're answering the calls from your team, but who is answering your questions?

Third-party payment processors like NatPay work with one aspect of your business in payroll and payment execution. This permits having a direct relationship with multiple banking partners and payment processing to be streamlined, rather than hamstrung. As an example, most banks don’t offer one-day ACH processing. Instead, they sit on Tax Impound deposits for five business days.

This makes sense at first glance, as banks are inherently risk-averse and want to avoid being on the hook for bad batching. On the other hand, the risks to your business in potential losses can be massive. Third-party processors like NatPay find a solution for this in pre-funding or wire transfers in advance of the batching to ensure your payments are remitted on your schedule and without concern for a potential NSF on a short turnaround.

Compliance Is on You

In 2017, new regulations were released that require annual NACHA audits. As a payroll processor yourself, you would have agreements with your customers. However, if you want to avoid the complexity of the annual audit, you need to submit your ACH/NACHA files to a third-party processor that also has an agreement with each of your clients.

Since your bank (or any institution that claims to be part of a bank or bank division) has no agreement with your clients, they are not considered third-party processors by law and therefore you will still be required to complete the lengthy annual audit process yourself. With NatPay as your official third-party institution, they take care of the audits, meaning you don’t have to worry about excessive compliance procedures.

No institution you trust with your business finances should pass compliance issues down to you. Instead, they should be shielding you from them. A first-rate ACH third-party processor that adheres to all rules and regulations should provide you with peace of mind instead of adding stress by leaving you in a minefield of compliance navigation.

What About Fraud?

Nationwide, the Statistic Brain Research Institute recently reported that employee theft costs US companies some $50 billion annually and according to the Association of Certified Fraud Examiners, payroll fraud alone accounts for 8.5% of all occupational fraud globally. Once you consider that upwards of 27% of businesses have experienced some form of payroll fraud, and that the average payroll fraud instance can cost upwards of $70,000, you can see why fraud protections become critically important for your business.

To combat this, you need to partner with a reputable ACH provider who is as committed to your business as you are.

NatPay has decades of experience and knowledge under their belt to prioritize protecting your business. NatPay’s suite of fraud protection systems is constantly evolving and expanding to meet new threats, including high-dollar verification, pennies verification on new accounts, TIN matching for new customer accounts, and a physical review of all new payroll transactions.

NatPay – The Best Way to Pay

NatPay became the leader in the space of payroll execution and remittance by being the organization you can trust to be there for you, anytime. NatPay is as passionate about making your business function with maximum efficiency and success as you are.

NatPay's experience in payment execution comes from the willingness to go the extra mile. Having been in the business of payment remittance for decades, NatPay has grown with the industry to maximize our expertise when it comes to fraud controls and prevention, top-tier web portals, and report distribution tailored to your company's needs.

The real key is that NatPay does one thing for your business, does it well, and seeks to find ways to constantly improve—not through new add-on services or additional fee structures tacked onto already owning your cashflow, but toward simplifying your life by taking full ownership of the function of your business you likely worry the most about—the relationships between you and the people and organizations you pay.

Get in touch with a NatPay expert today to schedule a free demo customized to your organization. With greater security, increased efficiency, reduced payment delays, improved tracking capabilities, and accurate and immediate financial reports; NatPay's payroll solutions benefit your business in all of the areas where it matters most.

Visit our White Paper Library to download this article: Is Your Payment Processor Really Working for You?