Negative Reserves

The Reserve Funding application's Negative Reserves feature enables you to place a negative amount on reserve, retain a negative reserve balance, and hold debits for a merchant.

This means that Reserve Funding is not limited to deposit activity (transaction codes 9014, 9017); it can include activity for all transaction codes including daily fees, designated as "separate," that would debit the merchant.

For example, you could use the Negative Reserves feature to prevent negative deposits from debiting a merchant's bank account, or to place a hold on all deposit activity for a merchant.

To configure which departments will be allowed to hold negative reserves for merchants, when creating or editing a department, select the Allow Negative Reserves option.

To edit or delete a department:

From the main menu bar, click Manage Department.

The Manage Department page opens, listing any existing departments.
From the list of departments, click the Department Name for the one you want to edit or delete.
The Maintain Department box opens.
To delete the department, click Delete.
-or-

To edit the department, make changes in the fields as required, and then click Submit:
- Bank (if available)
  The Bank ID The 4-digit unique Bank ID. for the department.
- Department Name
  The name of the department; for example, Risk, New Accounts, Underwriting.
- Department Priority
  A priority number to determine the order in which the department will collect reserve funds relative to other departments.
  
  For example, a department with a priority of 1 will collect the designated amount first before any other departments collect. A priority 2 department will collect the designated amount from the remaining balance after the priority 1 department has collected. A priority 3 department will then collect the designated amount from the remaining balance after the departments of priority 1 and 2 have collected, and so on.
  
  Changing the priority of one department will reorder the other department priority numbers accordingly.
  
  Note: If the ACH Deposit Cap is selected when setting a reserve, the ACH Deposit Cap field can only be populated for a department set with a priority of 1.
- Department Reserve DDA
  The Reserve DDA for the department. If left blank, the corresponding bank's Reserve DDA will be used.
- Department Reserve T/R
  The department's reserve trans routing number. If left blank, the corresponding Bank Transit Routing Number will be used.
- Department Reserve DDA Indicator
  The type of bank account for the department's Reserve DDA, to which a merchant is associated. Select one of the following from the drop-down list:
  - Checking
  - Savings
  - GL
- Department Clear DDA
  The DDA for the department when transferring funds only. If left blank, the corresponding Bank DDA will be used.
- Department Clear T/R
  The department's trans routing number when transferring funds only. If left blank, the corresponding Bank Transit Routing Number will be used.
- Department Clear DDA Indicator
  The type of bank account for the department's DDA, to which a merchant is associated, when transferring funds only. Select one of the following from the drop-down list:
  - Checking
  - Savings
  - GL
- Department Type
  Note: This field is intended for future use and full functionality will become available at a later date. The field value is set at the time of implementation and will not be editable.
  
  The department type.
- Allow Negative Reserves
  Note: This field will only be available if negative reserve amounts have been enabled.
  
  When this check box is selected for a department, it indicates negative reserve amounts are allowed for the department.

To create a department:

From the main menu bar, click Manage Department.

The Manage Department page opens, listing any existing departments.
Click the options menu icon, and then select Add New Department.

The Add New Department box opens.
Enter department information in the fields provided:
- Bank (if available)
  The Bank ID The 4-digit unique Bank ID. for the department.
- Department Name
  The name of the department; for example, Risk, New Accounts, Underwriting.
- Department Priority
  A priority number to determine the order in which the department will collect reserve funds relative to other departments.
  
  For example, a department with a priority of 1 will collect the designated amount first before any other departments collect. A priority 2 department will collect the designated amount from the remaining balance after the priority 1 department has collected. A priority 3 department will then collect the designated amount from the remaining balance after the departments of priority 1 and 2 have collected, and so on.
  
  Changing the priority of one department will reorder the other department priority numbers accordingly.
  
  Note: If the ACH Deposit Cap is selected when setting a reserve, the ACH Deposit Cap field can only be populated for a department set with a priority of 1.
- Department Reserve DDA
  The Reserve DDA for the department. If left blank, the corresponding bank's Reserve DDA will be used.
- Department Reserve T/R
  The department's reserve trans routing number. If left blank, the corresponding Bank Transit Routing Number will be used.
- Department Reserve DDA Indicator
  The type of bank account for the department's Reserve DDA, to which a merchant is associated. Select one of the following from the drop-down list:
  - Checking
  - Savings
  - GL
- Department Clear DDA
  The DDA for the department when transferring funds only. If left blank, the corresponding Bank DDA will be used.
- Department Clear T/R
  The department's trans routing number when transferring funds only. If left blank, the corresponding Bank Transit Routing Number will be used.
- Department Clear DDA Indicator
  The type of bank account for the department's DDA, to which a merchant is associated, when transferring funds only. Select one of the following from the drop-down list:
  - Checking
  - Savings
  - GL
- Department Type
  Note: This field is intended for future use and full functionality will become available at a later date. The field value is set at the time of implementation and will not be editable.
  
  The department type.
- Allow Negative Reserves
  Note: This field will only be available if negative reserve amounts have been enabled.
  
  When this check box is selected for a department, it indicates negative reserve amounts are allowed for the department.
Click Submit.

This then enables the Merchant Management page's Send Debit check box. To prevent any debits to the merchant (and thus enable negative reserves for the merchant), clear this check box.

Daily ACH Activity

When using the Daily ACH Activity report to monitor negative reserve activity:

This report displays all daily reserve and release ACH activity over a given time period by a given entity (Bank, Merchant, Association, Group, etc.).

Note: Access to this report depends on your user entitlements.

To run the Daily ACH Activity Report:

From the the Reports menu, click Daily ACH Activity.
The Daily ACH Activity Report criteria selection box opens.
Under Please Select Filter Criteria, enter your report criteria in the following fields:
- Bank(s): Select the required Bank ID The 4-digit unique Bank ID. from the drop-down list.
- Group: Enter the required Group ID The 6-digit unique Group ID., or click the icon to open the Group Search dialog box, where you can select a Group from a searchable list.
- Association: Enter the required Association ID The 6-digit unique Association ID., or click the icon to open the Association Search dialog box, where you can select an Association from a searchable list.
- Merchant Number: Enter the required Merchant Number The 16-digit unique Merchant ID., or click the icon to open the Merchant Search dialog box, where you can select a Merchant from a searchable list.
- Department(s): Select any Departments to report on.
  An entity that can Reserve and Release Funds from a merchant.
- Start Date: Enter the start date to report on, or click the calendar icon and select the date from the pop-up calendar. The default is the current date.
- End Date: Enter the end date to report on, or click the calendar icon and select the date from the pop-up calendar. The default is the current date.
- Reserve DDA
  The bank's Reserve DDA number where funds are held on reserve, to which a merchant is associated.
- Activity Type
  Select one of the following activity types to report on from the drop-down list:
  - Both
  - Reserve
  - Release
- Show Only Trans w/Carry-over: Select the Yes option button to report only on transactions that result in carryover; otherwise, select the No button.
- ACH Deposit Cap
  This field and its adjacent drop-down list enable you to search for merchants based on an ACH deposit cap, that is, the maximum deposit to fund to the merchant. Select the required operator (>, =, or <) from the drop-down list, and then enter the required amount in the adjacent field.
  
  For example, to search for merchants with an ACH deposit cap of less than $2000, select < from the drop-down list, and enter 2000 in the adjacent field.
- Reserve/Release Amount
  This field and its adjacent drop-down list enable you to search for merchants based on a specific reserve or release amount. Once you have selected the appropriate Activity Type, select the required operator (>, =, or <) from the drop-down list, and then enter the required amount in the adjacent field.
  
  For example, to search for merchants with reserve amount of less than $5000:
  1. From the Activity Type drop-down list, select Reserve.
  2. From the Reserve/Release Amount drop-down list, select <, and then enter 5000 in the adjacent field.
Under Please Select/De-Select Fields To Display, clear the check boxes for any fields you do not want to display on the report.
Those that are selected will be included in the report.
Click Generate.
The report opens in a new window.
Use the HTML Active report functionality to access a wide range of highlighting, sorting, filtering, calculation, charting, visualizing, column hiding or freezing, record listing, commenting, export, and print options for the report.
Download, save, and print the report as required.
You can download a report in portable document format (PDF) or Microsoft Excel format. You can then save or print the information as required.

Tip: As well as the method described here, you can also use the HTML Active column report functionality to print a report.
1. From the report window's Select type of display output panel, select the PDF or Excel option button as required, and then click the New window refresh button .
  
  The PDF or Excel version of the report opens in a new window.
2. Save or print the report as required.

In the Reserve/Release Amount criteria fields, make an appropriate selection and entry.
For example, to report on any negative amount that was reserved or released, select < (less than) from the drop-down list, and then enter 0.00 in the adjacent field.
Select the check box to display the Send Debit column in the report, if required.

daily_ach_activity_report_neg_reserves

Merchants On Reserve

When using the Merchants On Reserve report to monitor negative reserve activity, make appropriate selections/entries in these criteria fields:

This report enables you to view activity on merchants that have been set up for reserve funding over a given time period by a given entity (Bank, Merchant, Association, Group, etc.).

Note: Access to this report depends on your user entitlements.

To run the Merchants On Reserve Report:

From the Reports menu, click Merchants On Reserve.
The Merchants On Reserve Report criteria selection box opens.
Under Please Select Filter Criteria, enter your report criteria in the following fields:
- Bank(s): Select the required Bank ID The 4-digit unique Bank ID. from the drop-down list.
- Group: Enter the required Group ID The 6-digit unique Group ID., or click the icon to open the Group Search dialog box, where you can select a Group from a searchable list.
- Association: Enter the required Association ID The 6-digit unique Association ID., or click the icon to open the Association Search dialog box, where you can select an Association from a searchable list.
- Merchant Number: Enter the required Merchant Number The 16-digit unique Merchant ID., or click the icon to open the Merchant Search dialog box, where you can select a Merchant from a searchable list.
- Reserve DDA
  The bank's Reserve DDA number where funds are held on reserve, to which a merchant is associated.
- Reserve ID: Enter the required Reserve ID, or click the icon to open the Select Reserve ID dialog box, where you can select a Reserve ID from a searchable list.
- Release ID: Enter the required Release ID, or click the icon to open the Select Release ID dialog box, where you can select a Release ID from a searchable list.
- Department(s): Select any Departments to report on.
  An entity that can Reserve and Release Funds from a merchant.
- Reserve Balance
  This field and its adjacent drop-down list enable you to report on merchants based on a reserve balance amount. Select the required operator (>, =, or <) from the drop-down list, and then enter the required amount in the adjacent field.
  
  For example, to report on merchants with a reserve balance of less than $1000, select < from the drop-down list, and then enter 1000 in the adjacent field.
- Carry-over Balance
  This field and its adjacent drop-down list enable you to report on merchants based on a carry-over balance amount. Select the required operator (>, =, or <) from the drop-down list, and then enter the required amount in the adjacent field.
  
  For example, to report on merchants with a carry-over balance of less than $1000, select < from the drop-down list, and then enter 1000 in the adjacent field.
- Reserve
  This field and its adjacent drop-down lists enable you to search for merchants based on an allocated reserve amount. Select the required operator (>, =, or <) from the drop-down list, and enter the required amount in the adjacent field.
  
  For example, to search for merchants allocated a reserve amount of more than $5000, select > from the drop-down list, and enter 5000 in the adjacent field.
- Release
  This field and its adjacent drop-down lists enable you to search for merchants based on an allocated release amount. Select Amount or Percent from the first drop-down list, select the required operator (>, =, or <) from the second, and then enter the required amount in the adjacent field.
  
  For example, to search for merchants allocated a release amount of less than $2000, select Amount from the first drop-down list, < from the second, and enter 2000 in the adjacent field.
- Reserve Start Date
  To report on a range of reserve start dates, enter the From and To dates for the range, or click the calendar icon for each field and select the required date from the pop-up calendar.
- Reserve Stop Date
  To report on a range of reserve stop dates, enter the From and To dates for the range, or click the calendar icon for each field and select the required date from the pop-up calendar.
- Release Start Date
  To report on a range of release start dates, enter the From and To dates for the range, or click the calendar icon for each field and select the required date from the pop-up calendar.
- Release Stop Date
  To report on a range of release stop dates, enter the From and To dates for the range, or click the calendar icon for each field and select the required date from the pop-up calendar.
- Send Debit Indicator
  From the drop-down list, select one of these options to indicate whether you want to report on merchants for whom Send Debit is selected or not selected:
  - Both: Report on merchants for whom Send Debit is either selected or not selected.
  - Checked: Report on merchants for whom Send Debit is selected; that is, where debits are sent to the merchant (and not reserved).
  - Unchecked: Report on merchants for whom Send Debit is not selected; that is, where debits are reserved in the department that has an active reserve.
Under Please Select/De-Select Fields To Display, clear the check boxes for any fields you do not want to display on the report.
Those that are selected will be included in the report.
Click Generate.
The report opens in a new window.
Use the HTML Active report functionality to access a wide range of highlighting, sorting, filtering, calculation, charting, visualizing, column hiding or freezing, record listing, commenting, export, and print options for the report.
Download, save, and print the report as required.
You can download a report in portable document format (PDF) or Microsoft Excel format. You can then save or print the information as required.

Tip: As well as the method described here, you can also use the HTML Active column report functionality to print a report.
1. From the report window's Select type of display output panel, select the PDF or Excel option button as required, and then click the New window refresh button .
  
  The PDF or Excel version of the report opens in a new window.
2. Save or print the report as required.

Reserve Balance

Send Debit Indicator

If required, select the check box to display the Send Debit column in the report.

merchants_on_reserve_report

Negative Reserves

In This Chapter