Swacha Services Corp. has signed an agreement with the Shazam electronic funds transfer network enabling it to offer Shazam’s member community banks and credit unions an automated clearinghouse payment-origination service, the Dallas-based for-profit subsidiary of the Swacha regional payments association announced late last month.
The financial institutions may sell the service to businesses, which may use it to manage ACH payments, specifically payroll direct deposits.
“This is a tool for a company’s accountant or someone on the back-end [of a payroll department] that enables them to manage payments without a third-party,” Dan Kramer, senior vice president of marketing and merchant services at Des Moines, Iowa-based Shazam, tells PaymentsSource.
Businesses may load the service’s software to a personal computer, enabling the user to schedule payments “at multiple layers of approval,” Kramer says. “There are settings in the software to ensure the amounts you’re submitting are accurate,” he adds.
For example, one setting asks for secondary approval before depositing a predetermined amount of funds, say $100,000, to different employee bank accounts. Those types of settings help banks spot any suspicious activity, says Dennis Simmons, Swacha president and CEO.
