Electronic Payments Policy & Procedures

Definitions:

ACH: is Automated Clearing House

ACH deletes: deleting one ACH Originated Transaction from a file.

ACH reversal: reversing one previously originated ACH Originated Transaction or a complete file of originated transactions.

ACH Notice of Change: Information sent by a receiving depository financial institution to the originating depository financial institution that previously valid information for a receiver has become outdated or is incorrect.

ACH Origination: Initiating ACH Transactions into the ACH Payment System.

ACH RCK: A single-entry ACH debit application used by Originators to represent a check that has been previously processed in the check collection system and returned for insufficient (NSF/OD) or uncollected funds.

ACH Returned Item: An ACH Originated Item that is returned as NSF/OD (insufficient funds) or unauthorized ACH transaction.

ACH “Send a File”: A secure method of transmitting an entire file of NACHA Format ACH transactions for processing into the ACH Payment System instead of using any Online Banking ACH Module for creating ACH transactions.

Bank Changes: Changes of any depository account information such as change of institution, account numbers, etc.

Bank Information Change Form: the form utilized to notify the District of any designated depository account information changes.

Convenience Fee: There is a transaction charge assessed to the District for each Credit, Debit card, and electronic check transaction, this charge will be referred to as a convenience fee.

Credit Card: a card entitling one to charge purchases at certain businesses.

Debit Card: a bankcard that allows the cost of purchases to be deducted from a bank account.

Digital Image Processing: is where a paper check is changed to a digital image then transmitted to a depository account instead of the paper check.

Disaster Recovery Plan: The plan that is in place to assure the continued operation of the electronic payment system.

Due Date: is the thirtieth (30th) of each month, with the exception of February, which will be due on the twenty-eighth.

Electronic Check: is a payment method that uses a paperless check.

Electronic Fund Transfer (EFT): is an electronic method for instructing financial institutions to debit or credit customer accounts and thereby effect a transfer of funds from one account to another.

Electronic Fund Transfer Authorization Agreement: the agreement that is completely filled out, signed by the customer and notarized allowing the EFT.

E-Statement: is a bill that is sent to a customer from the District’s e-mail address to the customer’s e-mail address.

Late Payment: is when the payment is received after the due date.

Manual Check: is the standard paper check that is manually processed.

NACHA: is the National Automated Clearing House Automation.

NSF/Overdraft Fee-Paid or Returned Per Item: is the fee charged for a returned item for various reasons on the designated depository account.

Routing Number: (or Transit Number) – a nine-digit number given by the ABA (American banker’s Association) to uniquely identify each bank or financial institution. You can find the clearing bank’s routing number printed in magnetic recognition ink on the bottom of a check.

Timely Payment: is when the payment is credited to the District’s designated account on or before the due date. You are responsible for meeting your bank’s deadlines for timely payments.

Timely Notice: is when notice given twenty-one days (21) in advance of the electronic fund transfer date that contains all of the necessary information.

Web Payment System: is payment made over the Internet through a third party provider.

General Policy for Electronic Payment Methods

The Due Date is the date that the monthly sewer bill payment is due, which is the 30th of the month, except in February where the due date is the 28th of the month.
A monthly sewer bill payment is considered, “a timely payment” when it is made by an electronic payment method for which your electronic account is debited and the Steuben Lakes Regional Waste District’s account is credited on or before the due date of the monthly sewer bill. The Steuben Lakes Regional Waste District does not recognize Saturday, Sunday, or National or State Holidays as exemptions from receiving timely payments.
A payment is considered late if it is not received on or before the due date of the sewer bill. The District will add a 10% penalty on late payments received after the due date. Electronic payments are considered late if the District’s account is not credited on or before the due date. The District will add a 10% penalty on the late payment. If the electronic payment is made on the due date it generally takes two working days before the District’s account is credited, so the payment would be considered late and a 10 % penalty would be accessed to the account.
The District shall establish security standards and policies that include proper safeguards to protect the confidentiality of all confidential customer information entrusted to the District.

Electronic Fund Transfer Policy and Procedure for Monthly Sewer Bill Payment

INITIATION OF EFT. The customer that wishes to utilize the Electronic Fund Transfer method to pay their sewer bill will be required to sign and return an Electronic Fund Transfer Authorization Agreement for Direct Debit/ ACH Debits. The customer will be required to provide the District with authorization twenty-one (21) days in advance of the electronic fund transfer date so that the Electronic Fund Transfer can be setup and tested for this customer account. This will be filed in a secure place in the District’s office.

INFORMATION COLLECTED ON THE ELECTRONIC FUND TRANSFER AUTHORIZATION AGREEMENT.

Customer: Name, billing address, service address, Tax identification number, and telephone number
Designated Depository: Name, address, and telephone number
Account: Account number and routing number

SECURITY OF INFORMATION. The Electronic Fund Transfer Authorization Agreement does contain confidential information that is not accessible to the public and will not be released under any circumstances as a public record. This information may be reviewed as part of State or Federal Audits or to test compliance with security standards.

CANCELLATION OF EFT. The customer will be required to notify the District twenty-one (21) days in advance of the electronic fund transfer date to cancel the Electronic Fund Transfer Authorization Agreement. Cancellation shall be in the form of a letter instructing the District to cancel the electronic fund transfer for their account. The cancellation shall include the customer’s service address, sewer billing account number, short message instructing to cancel the EFT, and the customer’s notarized signature. Once the proper cancellation is received all of the confidential account information shall be adequately destroyed.

PAYMENT DEBIT/CREDIT. The District shall debit the customer’s designated depository account four (4) working days prior to the monthly sewer bill due date.

GENERAL EFT POLICY. It is the customer’s responsibility to notify the District of any changes in: the ownership of the property, the designated depository, and/or account number, in a timely manner. District and customer agree to assist each other in the event of an error in this payment method.

Credit Card Payment Policy and Procedure

INITIATION OF USE. The customer’s use of the credit card shall be considered as authorization for this type of transaction.

PAYMENT. The District can accept credit card payment transactions as a convenience to District’s customers. There is a transaction charge assessed to the District for each credit card transaction. This charge will be referred to as a convenience fee and shall be passed on to the customer using the credit card to pay the monthly sewer charges. The convenience fee will be three percent (3%) of the amount of the transaction. The convenience fee shall be rounded up to the nearest $.01. The customer shall be informed of this convenience fee at the time that they wish to use their credit card.

SECURITY OF INFORMATION. Credit card information is confidential information that is not accessible to the public. Credit card information shall be destroyed 90 days after the transaction is completed.

Debit Card Payment Policy and Procedure

INITIATION OF USE. The customer’s use of the debit card shall be considered as authorization for this type of transaction.

PAYMENT. The District can accept debit card payment transactions as a convenience to District’s customers. There is a transaction charge assessed to the District for each debit card transaction. This charge will be referred to as a convenience fee and shall be passed on to the customer using the debit card to pay the monthly sewer charges. The convenience fee will be three percent (3%) of the amount of the transaction. The convenience fee shall be rounded up to the nearest $.01. The customer shall be informed of this convenience fee at the time that they wish to use their debit card.

SECURITY OF INFORMATION. Debit card information is confidential information that is not accessible to the public. Debit card information shall be destroyed 90 days after the transaction is completed.

Electronic Check Payment Policy and Procedure

Electronic check payment method uses a paperless check. The District may be charged a fee accepting payment via electronic check. This charge will be referred to as a convenience fee and shall be passed on to the customer using the electronic check to pay the monthly sewer charges.

Electronic Fund Transfer Policy and Procedure for Monthly Vendor Payment

INITIATION OF EFT. The District wishes to utilize the Electronic Fund Transfer method to pay their vendors. The vendors shall be required to have in their possession a signed Authorization Agreement for Direct Debit/ ACH Debits from the District. This shall be filed in a secure place in the vendor’s office. This District shall be the originator for the bill payment/debit.

SECURITY OF INFORMATION. This does contain confidential information that is not accessible to the public and shall not be released under any circumstances as a public record.

CANCELLATION OF EFT. The vendor will be required to notify the District twenty-one (21) days in advance to cancel the Electronic Fund Transfer Authorization Agreement. Cancellation shall be in the form of a letter instructing the District to cancel the electronic fund transfer for their account.
If the cancellation is initiated by the District, the District shall notify the vendor twenty-one (21) days in advance. Cancellation shall be in the form of a letter instructing the vendor to cancel the electronic fund transfer for their account.
Once the proper cancellation is received all of the confidential account information shall be adequately destroyed.

PAYMENT DEBIT/CREDIT. The District shall credit the vendor’s designated depository account the day following the District’s monthly meeting.

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