ACH Billing: The ACH Billing feature of Access Banking allows you to originate ACH billings to your customers without having to create an ACH transmission file.

ACH Terms:

  • (ARC) Accounts Receivable Entry: A consumer check converted to a one-time ACH debit
  • (CCD) Corporate Cash Disbursement: Primarily used for business-to-business transactions.
  • (POP) Point-of-Purchase: A check presented in-person to a merchant for purchase is presented as an ACH entry instead of a physical check. 
  • (PPD) Prearranged Payment and Deposits: Used to credit or debit a consumer account. Popularly used for payroll direct deposits and preauthorized bill payments.
  • (TEL) Telephone Initiated-Entry: Verbal authorization by telephone to issue an ACH entry such as checks by phone. (TEL code allowed for inbound telephone orders only. NACHA disallows the use of this code for outbound telephone solicitations unless a prior business arrangement with the customer has been established.)
  • (WEB) Web Initiated-Entry: Electronic authorization through the Internet to create an ACH entry.

APR (Annual Percentage Rate):
  This gives the cost of the credit expressed as a yearly percentage rate.  It is not the interest rate on the loan.  Rather, it incorporates the prepaid finance charges into the loan and calculates the total cost of the credit over one year.  Think of it as a “price tag” on the loan, which gives borrowers the actual “cost” of the loan (when finance charges are included).  Consumers should be able to use the APR to compare rates and finance charges being applied by different financial institutions, allowing the consumer to make a more informed decision. 

Auto Tran:
Is short for automatic transfer, which is an electronic transfer done from one LANB account to another and is completely internal.  

Automatic Clearing House (ACH):
Is an automatic transfer that either comes or goes to a business or institution other than LANB and takes 24 hours to be effective.  

Backup Withholding:
Taking a certain percentage of interest earned on a customer’s account and sending it directly to the IRS.  Only done for people who have not paid taxes in the past; owe back taxes currently; or don’t provide a SSN.  Regulated by IRS.  

Banking Day:
Is the part of any day that the Bank is open to the public.  

Business Day:
Is any day except Saturday, Sunday, and a legal holiday. 

Direct Deposit:
The Direct Deposit feature of Online Banking allows you to originate ACH payments to employees and other payee groups without having to create an ACH transmission file. (LANB also accepts business direct deposits, which allow your paycheck to electronically and automatically be deposited into your LANB account. Ask your employer about LANB's direct deposit if you're interested in this option.)

You can pay anyone with a mailing address in the United States using the Access Banking Disbursement feature.

Doing Business As (DBA):
Also known as Sole Proprietorship; an individual engaged in business without legal establishment of a separate business entity.

Dormant Account:
The deposit account has been inactive for at least 24 months.

Flood Certification: A document showing whether or not a piece of real estate is in a flood zone.  

Home Equity Line of Credit (HELOC):
Is a line of credit loan that is secured with the equity in a person’s house.  

Irrevocable Letter of Credit
An irrevocable letter of credit may be revoked only after obtaining permission from the beneficiary of the credit.  

Letter of Credit (L/C):
Is a letter of credit: a guarantee of funds to a third party on behalf of a borrower.

Line of Credit (LOC):
An LOC is a line of credit: a type of loan that, rather than disbursing all the proceeds of the loan in a lump sum, a credit limit is given and a customer can take the proceeds in smaller amounts multiple times.

NSF - Non Sufficient Funds: Means a person does not have enough money in an account to cover a transaction

Payable on Death (POD): the person who the money in an account will be given to upon death of the original account holder(s). 

Point-of-Sale (POS): A debit at an electronic terminal initiated by use of a plastic card. An example is using your debit card to purchase gas.

Power of Attorney (POA): Is a document giving the right to sign documents on another’s behalf.

Routing Number: Found on two places on a check:  the fractional routing number gives information about the paying bank.  The MICR routing number also gives the check number and account number.  

Underwriting: The process of evaluating a customer’s credit worthiness and financial stability to dictate the action taken on a credit application.

Uniform Commercial Code (UCC-1):
Is a form filed with the secretary of state, to put on notice to the public, that a lien has been placed on collateral that cannot be titled or mortgaged, for example: office equipment, Account Receivable agings, etc. 

Wire Transfer:
Is an electronic transfer, like the ACH except the transfer of funds are same day (if submitted before the 2:00 pm cut off time).