Keep your account and password information safe
It's a serious business dealing with money and bank information online. At Rotessa, we use the latest technology in SSL online security and encryption, but you also have a part to play in keeping your information secure.
What is phishing?
Phishing is a type of fraud in which a hacker attempts to gather personal information or credentials by impersonating a legitimate brand and sending users to a malicious website.
What usually happens is this: A hacker sends an email that appears to come from a trusted brand – like Rotessa – asking the user to log in or change the password for their account. When the user clicks on the link in the email, it would take them to a fake Rotessa login page. This is where they would gather your information.
When a hacker uses the right colours and logos both in the email and on the phishing page, it can be difficult to determine what's real without the right tools.
Never share your Rotessa account password with anyone - not even Rotessa!
The password you use to login to Rotessa and edit users, schedule transactions, export settlement reports and more should only be known by you. We do not know your password and we don't want to know it.
You will never be asked to send your password to us through an email. For any online service provider – not just Rotessa – you should go to the original website and verify or change your account information there.
Double-check who sent the email
Phishing emails can look legitimate. They might even say they're from a trusted company!
Hackers can "spoof" a legitimate company name as the email sender to look like it came from [email protected]. But the email underneath is actually a random address like [email protected].
If you're unsure about an unwarranted email, asking for your account information, make sure to expand the sender details in that email.
Don't let anyone intimidate you
Emails that have an aggressive tone or claim that immediate action must be taken to avoid terrible consequences should be considered a potential scam.
Phishers often scare people into giving up confidential information. An intimidating or scary email saying that your account is locked or that an invoice must be paid to avoid a suspended account is not going to come from us.
Contact Rotessa Support if you ever receive a weird email or have questions about your account information. We're here to help!
Check out our Security Standards Overview if you have any questions about how we keep your information secure.
Reid & Miller CPA and Rotessa
"I don’t have to phone my customers and say ‘where’s your check this month?’ It comes out of their bank — they’re happy, I’m happy!"
Reid & Miller CPA prides itself on creating an environment and relationship in which clients see their accountants as a comfortable addition to their team. Rotessa has served the Winnipeg-based accounting practice since 2015. Since they don't have to deal with collections, they can continue paying attention to their clients' needs.
EFTs vs ACH - What's the Difference?
You’ve probably heard the terms Electronic Funds Transfers (EFTs) and Automated Clearing House (ACH) used interchangeably before. But did you know they're not exactly the same thing? In this article we're going to look at EFTs vs ACH, how they're different, and discuss the best term to use between them.
So What's the Difference With EFTs vs ACH?
Technically all ACH transfers are EFTs, but not all EFTs are ACH transfers.
It’s sort of like how all Kleenex are facial tissues, but not all facial tissues are Kleenex. People use the name interchangeably, but ACH refers to a very specific system in the US called the Automated Clearing House (ACH). But EFTs refer to a broader payment category.
What is an EFT transfer?
An Electronic Funds Transfer is really just the broad term that applies to all kinds of electronic payment methods. EFTs can include ACH, Wire Transfer, E-Checks, Automated Teller Machines (ATM), and debit/credit card transactions. In 1978, United States President Jimmy Carter passed the Electronic Funds Transfer Act (EFTA) which is “intended to protect individual consumers engaging in electronic funds transfers.”
Confusion in Canada
Canadians often misuse the term ACH because so many payment companies service clients in both the US and Canada. But Canada actually runs on their own system called the Automated Clearing Settlement System (ACSS). But no one really talks about processing an "ACSS" transaction the same way ACH is referred. That would be too simple! Many Canadians use EFTs and ACH terms interchangeably, falsely thinking that EFT is just the Canadian version of ACH. But before we get too deep down the rabbit hole, let's first talk about the Automated Clearing House (ACH) network.
ACH Network
The Automated Clearing House network securely coordinates a system of batch payments across the US' various banking institutions. Instruction files sent in a daily batch move funds accordingly. This allows for thousands of individual transactions to be scheduled at once. Unlike wire transfers, ACH transfers don't operate with "cleared funds," which means transactions aren't instant. ACH payments only work with US financial institutions connected to the ACH network processing USD.
What is an ACH transfer?
An ACH transfer takes place when a customer gives authorization to an originator in order to deposit or withdraw money directly from the customer's bank account. For this reason, ACH transfers are also known as pre-authorized debits (PADs) or pre-authorized payments (PAPs). The business has gained “pre-authorization” from the customer to debit/credit their account according to the payment agreement. Most of the time when businesses say they "collect ACH" or "accept ACH," they mean that they electronically collect PADs on the ACH network.
EFT vs ACH: Is there a better term?
So far we've established that an ACH transfer is a form of EFT payment done specifically in the United States. ACH transfers are really just PAD payments. PADs are available in a variety of countries no matter the payment network.
So Pre-Authorized Debit (PAD) is the universal term we should all start using, whether you live in Canada with the ACSS network, or America with the ACH network.
For a beginners guide to understanding more about pre-authorized debits, check out our video series here.
LiveCA and Rotessa
"Right now we're saving over $13,000 a month and as we get bigger, I couldn't imagine anything except using Rotessa."
LiveCA is a completely cloud-based accounting practice. Chad and his team of accountants have been using Rotessa since 2013 – saying its the foundation of their payments system. As they work remotely, LiveCA gives its employees and the companies they serve a chance to focus on one of their core beliefs: there is more to life than work.
Are pre-authorized debits secure?
Pre-Authorized Debits are very secure due to the electronic protocol required by banks. All of the information is encrypted and sent through Canada’s federally-secured Automated Clearing Settlement System which means it can’t be redirected, read, or tampered with.
Pre-Authorized Debits are also regulated by the Electronic Funds Transfer Act, which details the rights and liabilities of Pre-Authorized Debits. Pre-authorized debits also have a very clear mandate to ensure any unauthorized debit can easily be reversed through the bank.
What are Pre-Authorized Debits (PADs)?
What are the advantages of Pre-Authorized Debits?
What kind of businesses are best suited to use authorized debits?
How do pre-authorized debits work?
Are pre-authorized debits secure?
How do I start accepting pre-authorized debits?
What is an authorization and why do I need it for pre-authorized debits?
How long do pre-authorized debits take?
What to know about pre-authorized debit rejections.
How do I start accepting pre-authorized debits?
To start accepting Pre-Authorized Debits, you will need to sign up with a Pre-authorized debit processor. This will either be your bank or a third party.
Some banks offer this solution as part of their larger cash management platform. Every bank has different requirements for setting up an account.. Typically banks work best with large transaction volumes and are best suited for enterprise clients. However, banks don’t offer API solutions for custom integrations. You can expect a sign up fee, monthly fees, and batch fees.
The second way is to sign up through a Third-Party Payment Processor, like Rotessa. Third-Party processors are usually more accessible to small businesses, have a better customer experience, and offer advantages such as APIs and other integrations.
Once you’re setup with a processor, you can offer your customers the convenience of automatic bank payments. This all starts with a simple authorization to outline the payment terms.
What are Pre-Authorized Debits (PADs)?
What are the advantages of Pre-Authorized Debits?
What kind of businesses are best suited to use authorized debits?
How do pre-authorized debits work?
Are pre-authorized debits secure?
How do I start accepting pre-authorized debits?
What is an authorization and why do I need it for pre-authorized debits?
How long do pre-authorized debits take?
What to know about pre-authorized debit rejections.
An overview of pre-authorized debit payments (PADs)
Pre-authorized debit payments (PADs) are electronic, and allow your business to withdraw money directly from your customer’s bank account.
The term pre-authorized refers to an agreement between your business and your customer. In the agreement, the customer will give permission for you to withdraw money from their account based on the terms outlined. This can work for recurring payments on a set schedule and for variable amount payments.
Pre-Authorized Debits work over a computerized network through Payment Canada’s federally-secured Automated Clearing Settlement System. This network connects all of Canada’s financial institutions.
Once you have an account set up with a processor, the first step is to collect a PAD agreement from your customer. This agreement outlines the payment terms and gives you the proper authorization to initiate payments.
Next, you can set a transaction schedule based on your payment terms. Payment instructions are sent to the bank one day in advance of the process date, the details are exchanged within the Automated Clearing Settlement System (ACHSS) and the appropriate funds are withdrawn from your customers bank account, and deposited to yours.
What are the advantages of using pre-authorized debit payments?
There are 3 advantages for business owners to collect payments through pre-authorized debits.
- They are automated. PADs can be scheduled in advance so you never have to worry about getting paid. On the scheduled dates, payments are withdrawn from your customer’s bank account.
- You gets to initiate the payments. As a business owner, you never have to wait on customer initiated payments and you won’t have to chase them down for being late. This will result in improved cash flow and a much better relationship with your customer.
- Cost savings. Most PAD processors charge a flat rate per transaction, not a percentage like credit cards. This can save you hundreds, or even thousands of dollars every month.
Are pre-authorized debits secure?
Pre-Authorized Debits payments are very secure due to the electronic protocol required by banks.
All of the information is encrypted and sent through Canada’s federally-secured Automated Clearing Settlement System which means it can’t be redirected, read, or tampered with.
PADs are also regulated by the Electronic Funds Transfer Act, which details the rights and liabilities of PADs. In addition, PADs have a very clear mandate to ensure any unauthorized debit can easily be reversed through the bank.
How to start accepting pre-authorized debit payments.
To start accepting PADs, you will need to sign up with a pre-authorized debit processor. This will either be your bank or a third party.
Some banks offer this solution as part of their larger cash management platform. Every bank has different requirements for setting up an account. Typically banks work best with large transaction volumes and are best suited for enterprise clients. Banks don’t offer API solutions for custom integrations and you can expect a sign up fee, monthly fees, and batch fees.
A second way to collect PADs is to sign up through a third-party payment processor, like Rotessa. Third-Party processors are usually more accessible to small businesses, have a better customer experience, and offer advantages such as APIs and other integrations.
Once you're setup with a processor, you can offer your customers the convenience of automatic bank payments. This all starts with a simple authorization to outline the payment terms.
Learn more about pre-authorized debit payments by visiting our blog or jump to a specific article through the the links below.
What kind of businesses are best suited to use authorized debits?
What is an authorization and why do I need it for pre-authorized debits?
How long do pre-authorized debits take?
What to know about pre-authorized debit rejections.
What to know about pre-authorized debit rejections
A reject is when your customer’s payment has been sent to the bank and has failed to process or settle into your bank account. There are various reasons why a rejection can take place, such as insufficient funds, the customer has requested the payment to be stopped, or the wrong account number was entered.
Rejections are easily resolved depending on the reason. In the event of insufficient funds, the business has up to 30 days to resubmit the payment.
What are Pre-Authorized Debits (PADs)?
What are the advantages of Pre-Authorized Debits?
What kind of businesses are best suited to use authorized debits?
How do pre-authorized debits work?
Are pre-authorized debits secure?
How do I start accepting pre-authorized debits?
What is an authorization and why do I need it for pre-authorized debits?
How long do pre-authorized debits take?
What to know about pre-authorized debit rejections.
How long do pre-authorized debits take?
Depending on the processor, Pre-Authorized Debits can take anywhere from 1-4 business days from the process date. It may seem like a while, but the settlement delay ensures that the funds are actually cleared before arriving in the account. This also greatly decreases the risk of fraud and gives you more control over your transactions should you need to cancel or reverse the payment.
You should also be aware that Pre-Authorized Debits are only processed on business days, and often payment processors have cut-off times. Any transactions made after the cut-off will not process until the next business day.
How long do pre-authorized debit transfers take in Rotessa?
If you are scheduling a transaction for the same day, it will take five business days from the processing date for funds to settle into your account.
We wait until the fourth business day to settle the funds because declined transactions can come back up to three days after a transaction has been posted for processing in the banking network.
Ex. A transaction processed on Monday will receive a settlement on Friday. A transaction processed on Tuesday will receive a settlement on the following Monday.
There is not a specific time when your settlement will arrive in your account or a specific time funds are pulled from your customer’s bank account, as this depends on the communication between the customer’s bank and the central bank.
What are Pre-Authorized Debits (PADs)?
What are the advantages of Pre-Authorized Debits?
What kind of businesses are best suited to use authorized debits?
How do pre-authorized debits work?
Are pre-authorized debits secure?
How do I start accepting pre-authorized debits?
What is an authorization and why do I need it for pre-authorized debits?
How long do pre-authorized debits take?
What to know about pre-authorized debit rejections.
What is an authorization and why do I need it for pre-authorized debits?
An authorization is a legally required agreement between your business and your customer outlining the payment details of a pre-authorized debit. As part of the authorization, your customer gives permission for you to withdraw money from their bank account and outlines the amount and timing of the payments. The authorization also outlines the cancellation process in the event your customer would like to cancel the agreement.
An authorization can be completed in person, or it can be completed online assuming you have reasonable means to identify your customer such as an email or phone number.
What are Pre-Authorized Debits (PADs)?
What are the advantages of Pre-Authorized Debits?
What kind of businesses are best suited to use authorized debits?
How do pre-authorized debits work?
Are pre-authorized debits secure?
How do I start accepting pre-authorized debits?
What is an authorization and why do I need it for pre-authorized debits?
How long do pre-authorized debits take?
What to know about pre-authorized debit rejections.