Introduction to ACH on Fyle
Fyle allows organizations in the United States to pay reimbursements to their respective employees via the ACH network. Dwolla helps in moving the amount from your organization’s bank account to your employees' bank accounts.
Fyle supports Standard ACH transfers. It takes up to 3-5 business days for the payment to be complete. You can pay reimbursements to your employees from within Fyle by utilizing ACH.
Administrators and owners on Fyle have the necessary role privileges to set up ACH details.
About Dwolla
Dwolla operates a software platform that sends your payment instructions to their financial institution partner. Dwolla is committed to protecting the personal information it collects. To know more, read about the privacy policy and terms and conditions.
Setting up ACH on Fyle
The steps below outline the process to configure the withdrawal account and required business details to ensure the successful validation of your organization's ACH request.
Business Verification:
1. Navigate to Admin Settings > Reimbursements and select Reimbursement via ACH.
2. You are required to verify your business details before proceeding with linking the withdrawal account. Verification is necessary to ensure compliance with regulations, and ACH cannot be configured without successful verification.
3. Choose the type of ownership applicable for your organization/entity for which you are configuring ACH for.
4. If you are setting up details for a Sole Proprietorship, basic details would suffice to ensure the successful setup of the ACH service post verification
5. If you are setting up ACH details for an organization that is an LLC, Corporation or another type of business, you would be required to provide a few more details and authenticate the details
6. You would be prompted to enter the details of your organization's Controller and also details of a Beneficial Owner, if applicable
7. If your organization type is exempt or if there is no individual with at least 25% ownership, you will be able to proceed without the need to enter Beneficial Owner information
8. The table below offers details regarding the requirement for adding and/or authenticating beneficial owner information
9. After you provide the required information depending on the type of your organization's ownership, the details will need to be verified. You can track the status from the ACH page.
10. If the status is documentation verification pending, then you need to upload the required documents to verify the business.
11. Click on the Add button to upload the corresponding documents. Please note that the documents should be color scanned in JPEG, JPG, or PNG with a document size of less than 10 MB.
12. If the business contains the Beneficial owner and the status is documentation verification pending, then you need to upload the required documents of the beneficial owner to verify the business.
Adding your company's bank account
1. After successful verification of your business details, you will be able to link the withdrawal account from Settings > ACH.
2. Clicking on Link bank account will allow you to search for your bank, input the credentials for your withdrawal account. Fyle does not store any account-related credentials.
3. After you successfully link the account, you can view the details from the ACH page and also remove or change the account.
Verification of bank account
After you successfully link your bank account, our ACH service provider, Dwolla, will transfer two deposits of less than $0.10 to your bank account. These deposits will be posted to your bank account in 1-2 business days. Once you see these deposits in your account, you must verify them on Fyle.
Definitions and notes:
A controller is a person who holds significant responsibilities to control, manage or direct a company or other corporate entity (i.e., CEO, CFO, General Partner, President, etc.). A company may have more than one controller, but only one controller’s information is required.
A beneficial owner refers to a person who directly or indirectly, owns 25 percent or more of a company. If there are no natural persons who own 25 percent or more of a company, then no information is required pertaining to a beneficial owner
Beneficial ownership authentication is an action taken by the Account Admin to confirm that the information provided is correct
Account Admin refers to the administrator who is setting up the ACH service on Fyle
Note: A beneficial owner cannot be another company (or other corporate entity), nor a nominee owner.
ACH is available only domestically in the United States.
Frequently Asked Questions (FAQ)
Why does Fyle need my business information and why verify it?
Important information about procedures for opening a new account under the USA PATRIOT Act of 2001: To help governments fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an Account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask for a form of identification with your photograph or other identifying documents.
Why is Fyle asking for personal details during business verification?
We wish we didn't have to. However, ACH support on Fyle is offered in partnership with a US-based financial institution that is subject to US federal laws. Specifically, the USA Patriot Act of 2001 requires all financial institutions to obtain, verify, and record information identifying each person who opens an account with them. This includes the personal information of any beneficial owner of your business, including at least one controller. The verification takes a few days, and this data is never used again after that.
Seriously, we'd get rid of it in a heartbeat if we could. However, our present ACH integration requires this as a verification step before any transfer of funds can be made through the US monetary system. Fyle itself does not store any of the data you enter as part of the ACH business verification form.
What personal data is needed?
In addition to your business details, you are required to enter personal information like full name, date of birth, social security number, and in some cases a form of photo identification. This applies to any beneficial owner of your business, including at least one controller.
What does my personal information get used for?
Fyle communicates this information to our partner financial institution for verification of your details. In addition to this, the institution may share your information in more ways, as detailed here, as required by law.
Does my personal information get sold?
No. Neither Fyle nor our partner financial institution sells your personal information.
How long does the business verification process take?
Dwolla’s business verification usually takes 4-5 business days if the necessary information is provided.
How long will it take for the amount to be moved among bank accounts?
For any payment through ACH, the normal Automated Clearing House clearing times will apply. This means that the funds should generally be available in the recipient's bank account within 4 business days.
How many transactions would happen in the organization’s bank account if multiple payments are processed via ACH at the same time?
If many reimbursements are processed at the same time(say choosing payments and processing via ACH) then there will be only one transaction line in the organisation’s bank account which is the sum of all the payments.
Could ACH payment fail sometimes?
Yes, there could be cases where the ACH payment might fail. Some of it could be - Insufficient funds in the organisation’s bank account to initiate a transaction, employee’s bank account is closed temporarily or permanently due to some reasons, etc.
What type of bank accounts does Fyle support ACH for?
We support both Savings and Checking accounts among major US banks.
How can I send funds through ACH to an employee?
Once the business details are verified, your organisation's Fyle administrator will be able to add the withdrawal bank account. The employee too has to provide their valid bank account details after which the respective employee can be reimbursed directly via ACH.
Where can I find details of a transfer made to an employee's account?
Every transfer made from Fyle generates two distinct bank reference values. You can find both of these by clicking on any Completed payment in the Payments section on your Fyle dashboard.
Bank Reference: This is the reference value that appears on your company's own bank statement for the outgoing transfer.
Employee Bank Reference: This is the reference value that appears on the employee's bank statement for the incoming transfer. This value is also visible to employees on their own Fyle dashboard.
Why can’t I see add a bank account on my profile page?
If your organization's business details are not verified yet, you will not be able to view the section to add your bank account details on your profile page.
How can I cancel an ACH payment?
An already-initiated ACH payment cannot be canceled. Also, no action can be taken on an ACH payment until the payment status is either successful or failed.
What happens when the ACH payment fails?
You can see the payment status of ACH payments under the Status column. If a payment fails, you will see an appropriate reason like below.
Depending on the reason for the payment failure, you can take a few actions. Here are some of the errors and how you can rectify them:
ACH payment failed due to insufficient funds in your company bank account: This failure happens when there aren't enough funds in your company's bank account to pay out your employees. Please add enough funds to your bank account and retry the payment.
Employee's bank account is closed. Kindly ask them to re-add an active bank account in their Settings: This failure happens when the employee does not have an active bank account. Ensure they've added details of an active bank account in their settings. Retry the payment after that.
Employee's bank account details are invalid. Kindly ask them to add a valid bank account in their Settings: This failure happens when the employee has added invalid account details. Ask the employee to add valid account details in their settings. Retry the payment after that.
Account number provided by the employee is invalid. Kindly ask them to add the correct account number in their Settings: This failure happens when the account number provided by the employee is incorrect. Ask them to add the correct account number in their settings. Retry the payment after that.
If you see any other reason than the ones mentioned above, please reach out to [email protected] and we'll be more than happy to help you.
Removing a bank account from your Fyle account
Please contact our support team at [email protected] with information on the account to be removed.