When a bank account participates in ACH transfers, the ACH EIN Identifier is required. Unlike traditional bank transfers that use the bank account and routing number, ACH transactions rely on the Company ID, which is a combination of the ACH EIN Identifier and the Federal Tax ID.
Why is the ACH EIN Identifier Important?
Each bank account must have a unique ACH EIN Identifier to ensure ACH payments are processed correctly. If multiple accounts share the same identifier, funds may be withdrawn from the wrong account, leading to discrepancies and potential errors in transactions.
How to Obtain the ACH EIN Identifier
The ACH EIN Identifier is assigned by the bank, so it must be set up correctly for each bank account. You can check for this information in your online banking portal. If it is not available there, your banking representative should be able to provide the correct identifier.
Setting Up the ACH EIN Identifier in the System
- Navigate to the Banking > Manage Bank Account page.
- Select the appropriate bank account and click Edit.
- Locate the ACH EIN Identifier field.
- Enter the unique identifier provided by your bank.
- Select whether this number should be prepended or appended.
- Click Save to update the information.
Handling Bank Accounts Not Used for ACH Transfers
If a bank account will not be used for ACH transactions, we recommend leaving the ACH EIN Identifier field blank. This ensures that the account does not participate in ACH transactions and prevents potential processing errors.