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PayPal Payflow - 2009 - ACH Payment Service User Guide

1. ACH Payment Flow on page 25 e Timetable for a Typical ACH Payment on page 26 e ACH Payment Types on page 29 e Retrying Returned Payments on page 30 e Notifications of Change on page 31 ACH Payment Flow PayPal breaks each debit or credit payment into two parts one with the customer target bank account and one with your bank account To help manage returns a three business day delay is typically used between the parts of the payment You and PayPal agree to this period when setting up your Payflow ACH Payment account For example if you submit a Debit Sale payment against a customer s bank account PayPal submits an ACH payment to debit the customer s bank account at the first available opportunity Three business days later if the payment is not returned PayPal submits a payment to credit your bank account For a credit conversely PayPal debits your bank account waits the period specified in your Payflow ACH Payment account agreement typically three business days and then credits the customer s bank account If a Debit Sale is returned during the holding period your bank account is not credited If the Debit Sale is returned after the holding period PayPal initially credits your bank account and then debits it when the return is received For returned credits PayPal initially debits your bank account and then credits your bank account when the return is received Payment Batch Settlemen
2. Contents Chapter 1 Signing Up for Payflow ACH Payment Service 7 How To Signi Wp se soa a ates a de ae A Aa ok el Pde Soe a ae a be a Se 7 Retrying Return Payments aaaea a 10 Chapter2 About ACH Payments 2 11 Benefits of ACH Payments aaua a 11 How Does ACH Work s s sa scad eant eo N Ea aa n na pa a a a e Sa 11 Differences from Credit Card Payments aoaaa aa eee ee 12 Schedule of Submission for Settlement a a a aa a 13 ACH Terminology a a e a a a E a a a a E a 14 Chapter 3 Summary of Authorization Requirements 17 Summary of CCD and PPD Authorization Requirements 17 CCD and PPD Debit Authorization oo ooa 000022005 17 Format of CCD and PPD Authorization oaoa a 17 Maintaining the Authorization Agreement aa aaa a 18 CCD and PPD Credit Authorizations aooo oa e 2 2 18 Summary of ARC Requirements a 18 ARC Legal Framework e pa Da a a e e a e a e a 18 ARC Eligibility 2 4 0 0 a a a aT a oe we ee a aa a ee A 18 ARC Authorization Requirements aoaaa a 18 Retention of source document o 18 Formatting Requirements aooaa a 18 Summary of POP Requirements oaoa aa a a 19 POP Legal Framework oaoa a 19 POP Eligibility eea aoa aa a e a a a ee 19 POP Authorization Requirements a aoaaa a 20 POP Receipt Requirement a 20 POP Formatting Requirements
3. aoaaa a 20 POP RET UMS o ira ek Goh ee ae Bh we Ban a Na GR ae Boks pa Beh ee 21 Summary of RCK Requirements oaa aaa 21 RCK Legal Framework aoaaa aaa a a 21 RCK Eligibility o o Pirar ada Eaa Saa 21 Payflow ACH Payment Service Guide all Contents RCK Notice Requirements 00 00 eee ee ee ee 22 RCK Retention of ltem 2 ee 22 RCK Formatting Requirements 2 2 0 0 ee 22 Summary of TEL Requirements es 2 2 E e a a a a 22 Legal Framework a 22 TEE Bligibility a 2 ea ee ta da a ee a 22 TEL Authorization Requirements 2 20000 pees 23 TEL Risk Management 2 2 a 23 TEL ROtUMS zo oi as heeds eet ayes Pah PE Gea es Se ae a Re Bae 23 Further Reading eco ic a gee a a ee a ge a a ae 23 Chapter 4 How Payflow ACH Payment Works 25 ACH Payment Flow o ec a g a ee 25 Payment Batch Settlement Time a 25 Timetable for a Typical ACH Payment e e 26 Example of a Successful Business to Business Debit Sale Payment 26 Example of a Business to Business Sale Debit Payment With a Customer Return Within Three Posting Days a 26 Example of a Business to Consumer Sale Debit Payment With a Customer Return After Three Posting Days e 27 Example of a Successful Business to Consumer Credit Payment 28 Example of a Business to Consumer Credit Payment With a Customer
4. Payments Void A Void payment cancels a Debit Sale payment A Void payment requires the Original Payment ID of an earlier Debit Sale payment You can Void any unsettled payment status P02 or P04 You cannot void a Void request Prenote Prenote refers to a Prenotification payment that you can use to verify bank account validity Prenotification payments do not transfer any funds Receiving banks RDFIs are not required to respond to a Prenotification payment Prenotifications are not settleable payments however they can be voided Tracking Payment Status Payflow Pro and Payflow Link accounts can view the status of a payment submitted returned and so on on PayPal Manager return reports Payflow Pro accounts can also view the status using the STATUS value returned to an Inquiry payment The status of a payment does not change more than once a day so more frequent inquiries are unnecessary When PayPal initially receives the payment assuming the payment is formatted correctly the status is set to P02 When the customer part of the payment is submitted to the ACH network the status changes to P03 for a credit this can take several days If the payment is returned the status changes to an R code with the number indicating the reason for the return Payment status is described fully in ACH Status Codes on page 49 Retrying Returned Payments A return is a payment that has been returned to the ODFI by the RDFI or by th
5. Requests aa RESULT Codes and RESPMSG Values TABLE 8 5 Payflow transaction RESULT values and RESPMSG text Continued RESULT RESPMSG and Explanation 601 Cybercash Query Error 1000 Generic host error This is a generic message returned by your credit card processor The RESPMSG will contain more information describing the error 1001 Buyer Authentication Service unavailable 1002 Buyer Authentication Service Transaction timeout 1003 Buyer Authentication Service Invalid client version 1004 Buyer Authentication Service Invalid timeout value 1011 Buyer Authentication Service unavailable 1012 Buyer Authentication Service unavailable 1013 Buyer Authentication Service unavailable 1014 Buyer Authentication Service Merchant is not enrolled for Buyer Authentication Service 3 D Secure 1016 Buyer Authentication Service 3 D Secure error response received Instead of receiving a PARes response to a Validate Authentication transaction an error response was received 1017 Buyer Authentication Service 3 D Secure error response is invalid An error response is received and the response is not well formed for a Validate Authentication transaction 1021 Buyer Authentication Service Invalid card type 1022 Buyer Authentication Service Invalid or missing currency code 1023 Buyer Authentication Service merchant status for 3D secure is invalid 1041 Buyer Authentication Service Validate Authentication faile
6. Ship City City for shipment Ship State State for shipment Ship Zip Code ZIP Code for shipment 5 PayPal validates the payment and returns a successful response upon successful validation If there is an error in any of the payment fields PayPal returns an error code with appropriate error text See Chapter 8 Responses to ACH Payment Requests for the list of Result Codes Successful payments return Status Code P02 and are sent for settlement at 7 p m on the next available day Payflow ACH Payment Service Guide 35 Using PayPal Manager to Perform ACH Payments Submitting a Single ACH Payment 36 Payflow ACH Payment Service Guide Using the Payflow Pro SDK to Perform ACH Payments This chapter describes the process of performing ACH payments using the Payflow Pro SDK For complete information on using the SDK and on payment request syntax see Payflow Pro Developer 5 Guide Response values are described in Chapter 8 Responses to ACH Payment Requests Information on testing payment appears in Chapter 7 Testing ACH Payments Using the Payflow SDK IMPORTANT You must comply with NACHA rules regarding how you obtain permission from the bank account holder to submit an ACH payment See Chapter 3 Summary of Authorization Requirements In This Chapter e Payflow ACH Payment Server on page 37 e ACH Payment Parameters on page 37 e Example ACH Payments on page 39 e Logging Payme
7. Side Return 28 ACH Payment Types s e cae cea ceada e ea da au kad iu a a a 29 Tracking Payment Status aoaaa a 30 Retrying Returned Payments a 30 Payment Cycle With Retries Disabled a 31 Payment Cycle With Retries Enabled a 2 2 31 Notifications of Change 2 a 31 Chapter 5 Using PayPal Manager to Perform ACH Payments 33 Submitting a Single ACH Payment 2 2 0 0 0 000 a 33 Chapter 6 Using the Payflow Pro SDK to Perform ACH Payments 37 Payflow ACH Payment Server ee 37 ACH Payment Parameters a 37 Example ACH Payments 2 2 2 a a 39 Example Debit Sale Payment 2 2 o e 39 Example Credit Payment aoaaa a 40 4 Payflow ACH Payment Service Guide Contents ional Example POP Debit Sale Payment 2 0 0 000 a 40 Example ARC Debit Sale Payment o o o 40 Example RCK Debit Sale Payment 0 o e o 40 Example WEB Debit Sale Payment 0 e e 40 Example WEB Credit Payment e e 41 Example Inquiry esos e a a wee ae a a 41 Example Void 2 2 42 Example Prenote Payment 2 aa a 42 Logging Payment Information a aoaaa aaa 42 Chapter 7 Testing ACH Payments Using the Payflow SDK 45 Testing ACH Payments General Information 45 TESUSCIVENS sats So Rear eee B
8. TEL 8 16 WEB 8 16 payments examples 26 limits 9 SDK examples 39 testing 45 PayPal Sales Representative 7 PNREF 64 format of value 54 PNREF value 53 54 POP payments 8 15 requirements 19 posting days 9 Credit payments 9 Debit Sale payments 9 PPD payments 8 15 requirements 17 Prenote TLA lt Emphasis gt see Prenotification payments Prenotification payments 15 processing limits 9 Credit payments 9 Debit Sale payments 9 R RCK payments 8 15 requirements 21 retrying 10 RDFI 15 Receiver ACH 14 regulations NACHA 17 RESPMSG value 53 55 RESULT value 54 RESULT values 53 communication errors 60 retry interval 15 47 retrying Credit payments 10 RCK payments 10 returns 10 returns 15 insufficient funds 10 retrying payments 10 uncollected funds 10 S sales representative PayPal 7 SEC Code 16 server payment 37 Payflow ACH Payment Service Guide service agreement 10 service enrollment 7 settings account 9 exceeding original credit amount 9 maximum credit amount 9 maximum debit amount 9 payment limits 9 retrying returns 10 settlement schedule 13 status codes NACHA 50 STATUS value 54 Y TEL payment type 8 16 TEL payments requirements 22 test server 45 testing ABA Routing Number 45 account number 45 payments 45 server 45 transaction response PNREF parameter 54 RESPMSG parameter 55 RESULT parameter 54 U uncollected funds retrying 10 V Void payment 16 W WEB payment t
9. Used to verify bank account validity Receiving banks are not required to respond to prenotification payments The tender type method of payment Use only the value A representing ACH City where the merchant s terminal is located Used only for POP State where the merchant s terminal is located Used only for POP Payment type S Debit Sale C Credit I Inquiry or V Void You can Void any payment in status P02 or P04 Credit payments require an ORIGID referring to an earlier Debit Sale payment and the AMT must be empty or the exact amount of the original Debit Sale payment Required Type Yes Alpha numeric uppercase No YorN default N Yes Alpha uppercase Optional Alpha Optional Alpha uppercase Yes Alpha uppercase Length 30 Example ACH Payments The payment response values shown in these examples are fully described in Chapter 8 Responses to ACH Payment Requests Example Debit Sale Payment Use TRXTYPESS to submit a Debit Sale payment TRXTYP E S6T END ER A amp ACCT 6355059797 amp FIRSTNAMI 1000019 amp AMT 42 00 amp PARTNER PayPal amp VENDOR SuperMerchantCCD uUS amp PWD x1ly2z3 RESULT 0 amp PNRI Payflow ACH Payment Service Guide Example Debit Sale Response EF V63D15597698 amp RESPMSG Approved E Susan Smith amp ACCTTYPI E C amp ABA 0 9 ER SuperMerchant 39 az Using the Payflow Pro S
10. customer s checking or savings account at a low transaction cost You can use existing depository financial institution relationships to accept ACH payments from customers Note Remember that you are responsible for obtaining authorization for an ACH payment from your customers and for managing customer enrollment payment actions for example making changes to amounts dates and payment responses for example notifying customers for insufficient funds or other returns In This Chapter e How To Sign Up on page 7 e Retrying Return Payments on page 10 How To Sign Up Follow these steps to sign up for Payflow ACH Payment Step 1 Contact PayPal Contact your PayPal Sales Representative at the following URL http www paypal com cgi bin webscr cmd _merchant outside Step 2 Submit an application Complete and submit a Payflow ACH Payment application You receive confirmation of approval within two to three weeks Step 3 Work with your Account Representative to set your account s banking requirements Upon approval and agreement on Payflow ACH Payment account limits for Credits and Debit Sales you work with your Account Representative to agree on banking requirements Step 4 Work with your Account Representative to configure your account s payment format Your account can be configured to support either Business to Business or Business to Consumer payment formats Payflow ACH Payment Service Guide a S
11. e Original payee on the face of the check appears within the Company Name Field of the Company Batch Header Record e Check serial number of the check is placed within the check serial number field of the entry Summary of TEL Requirements The TEL Telephone Initiated Entry format is used for a single entry debit transaction when an oral authorization is recorded for an ACH debit Legal Framework TEL entries are subject to the requirements of NACHA and the Electronic Fund Transfer Act TEL Eligibility TEL entries are used for a single ACH debit where an oral authorization has been received from the consumer via a telephone A TEL entry should not be used where a standing authorization is in place although the purchase may be transacted via the telephone A TEL entry should only be used when the payment meets the following requirements e There is an existing relationship between the Merchant and the customer e There is not an existing relationship between the Merchant and the customer but the customer initiated the telephone call 22 Payflow ACH Payment Service Guide Summary of Authorization Requirements Further Reading A relationship is defined as either there being a written agreement in place or the customer has purchased goods or services from the Merchant in the last two years TEL Authorization Requirements The authorization does not have to be provided to the consumer in writing however as the authorizatio
12. incorrect Company name is no longer valid and should be changed Company ID is no longer valid and should be changed Both the company name and company id are no longer Payment Responses When a payment finishes PayPal returns a response string made up of name value pairs For example this is a response to a Debit Sale payment request RESULT 0 amp PNRI EF VXYZ01234567 amp RESPMSG APPROVED amp AUTHCODE 123456 amp STATUS P02 Table 8 4 describes the values that appear in the payment response strings for all payment types TABLE 8 4 Payment responses common to all payment types Field RESULT ORIGRESULT PNREF RESPMSG Description The outcome of the attempted payment A result of 0 zero indicates the payment was approved Any other number indicates a decline or error RESULT codes are described in RESULT Codes and RESPMSG Values on page 54 The value of RESULT for the original payment Only for Inquiry I payments Payflow Reference ID a unique number that identifies the payment PNREF is described in PNREF Value below A descriptive message associated with decline or error RESULTs for S and C but not I payments Response messages are described in RESULT Codes and RESPMSG Values on page 54 Type Numeric Numeric Alpha numeric Alpha numeric Length Variable Variable 12 Variable Payflow ACH Payment Service Guide 53 az Re
13. into your biller s bank account 7 The customer s periodic bank statements reflect ACH payments 8 Merchants are notified of ACH payments on their bank statements Merchants use PayPal Manager to view status and reports on previously submitted payments 9 Ifa customer debit results in a return for insufficient funds closed bank account or other error condition then PayPal debits your bank account for the amount of the return Merchants use PayPal Manager to view return detail information Differences from Credit Card Payments Unlike the credit card network the ACH network is unable to provide real time authorization of funds The Payflow ACH Payment service therefore responds initially to an ACH payment by checking the format and other specific ACH information and returning an approved result The status of a payment changes during the lifecycle of the payment and occurs when PayPal settles the payment with the ODFI and again if either a Return or a Notification of Change is received Payflow ACH Payment Service Guide About ACH Payments How Does ACH Work Schedule of Submission for Settlement Because the ACH network operates only on banking days not on banking holidays PayPal settles at 7 p m the night before each banking day Sunday Monday Tuesday Wednesday and Thursday at 7 p m Payments submitted Thursday after 7 p m are not sent for settlement until Sunday at 7 p m If Monday is a banking holiday then p
14. on using the SDK see Payflow Pro Developer s Guide You can safely skip this chapter if you have a Payflow Link account Responses to payment requests are described in Chapter 8 Responses to ACH Payment Requests Testing ACH Payments General Information The test procedures presented in this chapter produce consumer side results Merchant side status is delayed by the specified number of posting days The test system settles test payments on the standard ACH schedule every day that precedes a banking day typically Sunday through Thursday See Schedule of Submission for Settlement on page 13 Test Server Submit test ACH payment requests of any payment format or authorization type to the ACH test server at pilot payflowpro paypal com Test ABA Routing Number Use ABA Routing Number 111111118 or any valid number for testing Test Bank Account Numbers Do not use a real bank account number for testing You must use one of the test bank account numbers provided in this chapter IMPORTANT Any consumer transaction to the test server using a non test account number results in an RO3 error invalid account number after settlement the transaction proceeds without error during OLTP This ensures that you are notified in the case that you mistakenly sent a live transaction to the test server Payflow ACH Payment Service Guide 45 Testing ACH Payments Using the Payflow SDK Simulating a Successful Settlement
15. paper checks and credit cards On the Internet ACH is primarily used for person to person P2P business to customer B2C and business to business B2B payments This chapter provides an overview of how the ACH payment system works In This Chapter e Benefits of ACH Payments on page 11 e How Does ACH Work on page 11 e ACH Terminology on page 14 Benefits of ACH Payments e By providing ACH service you provide your customers with an alternative to credit cards or checks e The ACH network provides lower cost payment than either checks or credit cards e ACH payments are faster than checks How Does ACH Work ACH payments are electronic payments that are created when the customer gives an originating institution corporation or other customer Originator authorization to debit directly the customer s checking or savings account for the purpose of bill payment Customers who choose ACH payment must first authorize you to debit their bank account for the amount due Authorization must conform to the requirements of the ACH Operating Rules and must be either written and signed or electronically displayed See www nacha org and Chapter 3 Summary of Authorization Requirements for details Today Payflow ACH Payment supports the following payment types e Electronic Check TEL and WEB payments e Check Conversion POP ARC and RCK payments Payflow ACH Payment Service Guide 11 12 About ACH Pa
16. settled Example of a Business to Consumer Sale Debit Payment With a Customer Return After Three Posting Days This timetable describes a Business to Business Sale debit payment in which a customer pays a company with an ACH payment and the Payflow ACH Payment account is configured for three posting days The ODFI generates a consumer side return payment is reversed after 7 days Day 1 The customer initiates payment and you submit a payment to PayPal PayPal validates the payment format initiates the customer side of the payment Payments are batched at the end of each day prior to a banking day and at 7 PM normally Sunday through Thursday See Payment Batch Settlement Time on page 25 Day 2 The ODFI submits the payment to the ACH Network operator Federal Reserve The customer bank account is debited This is the first day of the three posting days Day 3 This is a wait day Day 4 This is the third day of the three posting days PayPal initiates the merchant side of the payment The payment is batched at the end of each banking day at 7 p m See Payment Batch Settlement Time on page 25 Day 5 The ODFI submits the payment to the ACH Network operator Federal Reserve your bank account is credited Day 6 this could be within 60 days from Day 1 PayPal receives a return for the customer debit from ODFI Returns occur for a number of reasons See NACHA Return Status Codes on page 50 Assume that this return i
17. transactions in the process of collection uncollected checks brings the available and or cash reserve balance below the dollar value of the debit entry Specify 0 to disallow retries Specify 1 to enable PayPal to retry the payment once Specify 2 to enable PayPal to retry the payment up to two times NoTE Credit payments are never retried For RCK payments one retry maximum is performed when the retry setting is 1 or 2 You also specify the retry interval between and 7 banking days between receiving NSF returns and retrying the payment Step 6 Work with your Account Representative to set your account s service levels PayPal offers a variety of service agreements to suit your business requirements Step 7 Sign a Payflow ACH Payment Services agreement Once you agree on banking requirements Payflow ACH Payment account configuration and service levels you sign your Payflow ACH Payment Services agreement You can now begin to use your Payflow ACH Payment account to collect payments 10 Payflow ACH Payment Service Guide About ACH Payments The Payflow ACH Payment Service enables you to electronically collect payments from your customers for either single entry or recurring payments by directly debiting your customers checking or savings accounts The most common uses of ACH are online bill payment mortgage and loan repayment and direct deposit of payroll ACH payment is an efficient and cost reducing alternative to
18. writing or can be displayed electronically e The customer needs to sign the authorization either physically or digitally Regulation E provides information on the requirements for authorization with digital signature e The Authorization must contain evidence of the customer s identity e You must provide the customer a copy of the authorization either electronic or hardcopy Payflow ACH Payment Service Guide 17 18 Summary of Authorization Requirements Summary of ARC Requirements Maintaining the Authorization Agreement You must retain the authorization for a period of two years following the termination or revocation of the agreement CCD and PPD Credit Authorizations You need not request an authorization for a credit Summary of ARC Requirements The ARC Standard Entry Classification SEC allows for a single entry ACH debit transaction to convert a consumer check received via the US mail or at a drop box location for the payment of goods and services ARC Legal Framework The ARC entry is subject to NACHA operating rules the Electronic Funds Transfer Act and Regulation E You are required to use a reader device to capture the MICR line routing number account number and check serial number of the source document and key in the amount ARC Eligibility An item must comply to the following if the item is to be eligible as an ARC entry The check has been received through the US mail or drop box location ARC A
19. ACH credits Default setting Yes You can specify whether to require that credits must reference a previous Debit Sale payment Specify No to permit ACH credits only against previous payments Specify Yes to allow any credit payment to be processed If you specify Yes for this option then you cannot specify No for the Credits that may exceed the original payment amount option e Allow ACH credit amount to be greater than original amount Default setting Yes If you specified that you do not allow non referenced credits you can specify whether credits can exceed their original amount Specify No to require that the credit amount may not exceed the original payment amount Specify Yes to allow any credit amount up to the limit established for the Payflow ACH Payment account If you specify No for this option then you cannot specify Yes for the Allow Non reference ACH Credits option Payflow ACH Payment Service Guide E Signing Up for Payflow ACH Payment Service Retrying Return Payments Retrying Return Payments To help you manage returns specify whether you want PayPal to retry payments that result in either of the following return types e Insufficient funds Result code R01 The available and or cash reserve balance is not sufficient to cover the dollar value of the debit entry e Uncollected funds Result code R09 Sufficient book or ledger balance exists to satisfy the dollar value of the transaction but the dollar value of
20. Accounts Receivable Entry Convert a single check received by US mail or by drop box into an electronic Debit Sale Because you must obtain the ABA routing number account number and check serial number from the check using a check reader you can submit ARC payments only from Payflow Pro and not from PayPal Manager See Summary of ARC Requirements on page 18 for other requirements The ACH Network is a nationwide wholesale electronic payment and collection system used by hundreds of thousands businesses and financial institutions The ACH Network transfers payments and related data through computer and high speed communications technology Days upon which banking institutions are officially open for business Typically Monday through Friday excluding holidays Cash Concentration or Disbursement payment The payment method supported by Business to Business format accounts CCD can be either a credit or debit transfer where funds are either distributed or consolidated between corporate entities A CCD payment can be either standalone or recurring A Credit payment transfers funds from your the merchant s bank account into the customer s bank account A Credit requires the Original Payment ID of an earlier Debit Sale payment and the submitted Amount must be empty or the exact amount of the original Debit Sale payment Credit payments are not retried A Debit Sale payment transfers funds from the customer s bank account i
21. Bank account holder s first name You can search upon this text This text appears in the ACH Settlement report described in PayPal Manager online help Routing ABA American Banker s Association routing or transit number of the customer s Number bank Payflow ACH Payment Service Guide 33 Using PayPal Manager to Perform ACH Payments Submitting a Single ACH Payment TABLE 5 1 Manual ACH Payments page fields Continued Field Description Bank Account Savings or checking account number Number Bank Account Type Account type Savings Account or Checking Account Amount US dollar amount of the ACH payment Specify the exact amount to the cent using a decimal point use 34 00 not 34 Do not include comma separators use 1199 95 not 1 199 95 Customer Payment identifier that you the merchant provide You can search for Reference Number payments in PayPal Manager using this value Up to 12 characters Comment 1 Optional text that you can provide for reporting auditing You can search upon Comment 2 this text This text appears in the ACH Settlement report Descriptor Description up to 80 characters of the goods or services being purchased This text appears on the customer s bank account statement Required only for B2B format Payflow ACH Payment accounts Optional for B2C WEB payments Auth Source This field appears only for B2C format Payflow ACH Payment accounts Re presented Check Entry RCK See RCK Noti
22. CT 6355059797 amp FIRSTNAME Susan Smith amp ACCTTYPE C amp ABA 0 91000019 amp TENDER ASAUTHTY PE PPD amp AMT 0 00 amp PARTNER PayPal amp VENDOR SuperMerchant amp USER SuperMerchant amp PWD x1y2z3 Example Prenote Response RESULT 0 amp PNREF V63D15597698 amp RESPMSG Approved Logging Payment Information PayPal maintains a record of all payments executed on your Payflow ACH Payment account Norte This record is not the official bank statement The activity on your bank account is the official record Use PayPal Manager_https manager paypal com to view this record and use the information to help reconcile your accounting records Payflow ACH Payment Service Guide Using the Payflow Pro SDK to Perform ACH Payments em Logging Payment Information In addition PayPal strongly recommends that you log all payment results except for check information on your own system At a minimum log the following data e PNREF e Payment Date e Payment Amount If you have any questions regarding a payment reference the PNREF also called the transaction or payment ID Payflow ACH Payment Service Guide 43 az Using the Payflow Pro SDK to Perform ACH Payments Logging Payment Information 44 Payflow ACH Payment Service Guide Testing ACH Payments Using the Payflow SDK This chapter describes the process of testing ACH payments using the Payflow SDK For complete information
23. D15597698 amp RESPMSG Approved Example RCK Debit Sale Payment Use TRXTYPE S and AUTHTYPE RCK to submit a RCK Debit Sale payment DESC RCKExamp le amp TRXTY PE S amp TENDER A amp PARTNER partnersUSER user amp PWD pwd amp AMT 3 O amp ACCT 987654321 amp STREET 685 E Middle Field Rd amp ZIP 94043 amp ABA 111111118 amp ACCTTYPE C amp NAME John Doe amp AUTHTY PE RCK amp CHKNUM 78 9 Example RCK Response RESULT 0 amp PNREF V63D15597698 amp RESPMSG Approved Example WEB Debit Sale Payment Use TRXTYPE S and AUTHTYPE WEB to submit a WEB Debit Sale payment 40 Payflow ACH Payment Service Guide Using the Payflow Pro SDK to Perform ACH Payments Example ACH Payments TRXTY PE S amp TENDER A amp ACCT 6355059797 amp FIRSTNAME Susan Smith amp ACCTTYPE C amp ABA 09 100001 9 amp AUTHTY PE WEBS amp AMT 42 008 PARTNER PayPal amp VENDOR SuperMerchant amp USER Sup erMerchant amp PWD x1y2z3 Example Debit Sale Response RESULT 0 amp PNREF V63D155 97698 amp RESPMSG Approved Example WEB Credit Payment Use TRXTYPE C and AUTHTYPE WEB and the ORIGID of the previously submitted ACH WEB Debit Sale payment to submit a Credit payment You must specify the exact amount of the original Debit Sale payment or leave the amount unspecified TRXTYPE C8AUTHTYPE WEB8 PARTNER PayPal amp VENDOR Supe
24. DK to Perform ACH Payments Example ACH Payments Example Credit Payment Use TRXTYPE C and the ORIGID of a previously submitted ACH payment to submit a Credit payment You must perform a Credit payment before the first settlement TRXTYPE C amp PARTNER PayPal amp VENDOR SuperMerchant amp USER SuperMerchant amp PWD x1y2z 3 amp ORIGID VXYZ01475826 Example Credit Response RESULT 0 amp PNREF V63D15597698 amp RESPMSG Approved Example POP Debit Sale Payment Use TRXTYPE S and AUTHTYPE POP to submit a POP Debit Sale payment DESC POPExample amp TRXTYPE S amp TENDER A amp PARTNER partner amp USER user amp PWD pwd amp AMT 2 28ACCT 9876543218STREET 685 E Middle Field RdsZ1P 940436ABA 1111111188ACCTTYPE C8NAME JOhn Doe amp AUTHTY PE POP amp TERMS TATE CA amp TERMCITY MNVW amp CHKNUM 123 amp CITY MNV Example POP Response RESULT 0 amp PNREF V63D15597698 amp RESPMSG Approved Example ARC Debit Sale Payment Use TRXTYPE S and AUTHTYPE ARC to submit a ARC Debit Sale payment DESC ARCExamp le amp TRXTY PE S amp TENDER A amp PARTNER partner amp USER user amp PWD pwd amp AMT 2 6 amp ACCT 23456789 amp STREET 685 E Middle Field RdsZ1P 940436ABA 1111111188ACCTTYPE S8NAME Jane Doe amp AUTHTY PE ARC amp CHKNUM 456 Example ARC Response RESULT 0 amp PNREF V63
25. PayPal Payflow ACH Payment Service Guide For Professional Use Only Currently only available in English A usage Professional Uniquement Disponible en Anglais uniquement pour l instant Last updated June 2009 Payflow ACH Payment Service Guide Document Number 200000 en_US 200906 2009 PayPal Inc All rights reserved PayPal is a registered trademark of PayPal Inc The PayPal logo is a trademark of PayPal Inc Other trademarks and brands are the property of their respective owners The information in this document belongs to PayPal Inc It may not be used reproduced or disclosed without the written approval of PayPal Inc PayPal Europe S a r l amp Cie S C A is authorized and regulated by the Commission de Surveillance du Secteur Financier in Luxembourg as a bank PayPal RCS registration number 118349 Notice of non liability PayPal Inc is providing the information in this document to you AS IS with all faults PayPal Inc makes no warranties of any kind whether express implied or statutory with respect to the information contained herein PayPal Inc assumes no liability for damages whether direct or indirect caused by errors or omissions or resulting from the use of this document or the information contained in this document or resulting from the application or use of the product or service described herein PayPal Inc reserves the right to make changes to any information herein without further notice
26. Set up for first retry waiting period P04 1 First retry submitted P03 1 depends on retry interval Payment settled P03 N A 7 p m on Banking day NSF R01 is received N A within an hour Set up for second retry P04 2 Second retry submitted P03 2 depends on retry interval Payflow ACH Payment Service Guide 47 Testing ACH Payments Using the Payflow SDK Simulating NSF Retries TABLE 7 3 Generating a retry Continued Condition of Payment Status Code NSF Retries Timeline Payment settled P03 N A 7 p m on Banking day NSF return RO1 2 within an hour All retries failed 48 Payflow ACH Payment Service Guide Responses to ACH Payment Requests This chapter describes the contents of the responses to ACH payment requests In This Chapter e ACH Status Codes on page 49 e ACH NOC Codes on page 52 e Payment Responses on page 53 e RESULT Codes and RESPMSG Values on page 54 ACH Status Codes This section describes the values returned for ACH payment requests Payflow Status Codes STATUS values starting with the letter P are Payflow specific values that describe handling by PayPal TABLE 8 1 Payflow status codes Code Description Detail P02 Pending PayPal received the payment but the customer portion of the request has not yet been sent for settlement P03 Submitted The customer portion of the request has been sent to the ODFI The Settle request is believed to be settled unless
27. Simulating a Successful Settlement All properly formatted test payments with RESULT 0 show an initial status of P02 At 7 p m the status changes to P03 settlement Submit bank account number 1111111111 in a Debit or Credit payment to receive the associated status code The status is updated when the payment settles The status appears in the Status Code column of the PayPal Manager Transaction Detail page described on page 48 P status codes are described in Payflow Status Codes on page 49 TABLE 7 1 Generating a successful settlement status Bank Account Settled Status ABA Routing Number Number Initial Status Code 111111118 1111111111 P02 P03 Simulating Returns All properly formatted test payments with RESULT 0 show an initial status of P02 Once the payment is settled at 7 p m the status changes to P03 In the simulator returns are processed within the hour so the status changes to an R code at that time Simulating Returns Using the Payment Amount Return codes use the form Rxy where x and y are the digits 0 9 To generate a particular return value use account number 1111111111 and an amount of 1000 dollars plus the desired values of x and y as the value to the right of the decimal point 1000 lt 00 99 gt Example To generate a value of R12 send account number 1111111111 and an amount of 1000 12 Alternative Simulating Returns Using the Bank Account Number Note The method described in this secti
28. ation transaction that has already been captured 112 Failed AVS check Address and ZIP code do not match An authorization may still exist on the cardholder s account 113 Merchant sale total will exceed the sales cap with current transaction ACH transactions only 114 Card Security Code CSC Mismatch An authorization may still exist on the cardholder s account 115 System busy try again later 116 VPS Internal error Failed to lock terminal number 117 Failed merchant rule check One or more of the following three failures occurred An attempt was made to submit a transaction that failed to meet the security settings specified on the PayPal Manager Security Settings page If the transaction exceeded the Maximum Amount security setting then no values are returned for AVS or CSC AVS validation failed The AVS return value should appear in the RESPMSG CSC validation failed The CSC return value should appear in the RESPMSG Payflow ACH Payment Service Guide 57 az Responses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8 5 Payflow transaction RESULT values and RESPMSG text Continued RESULT RESPMSG and Explanation 118 Invalid keywords found in string fields 119 General failure within PIM Adapter 120 Attempt to reference a failed transaction 121 Not enabled for feature 122 Merchant sale total will exceed the credit cap with current transaction ACH transactions only 125 Fraud Protection Ser
29. authorization To clearly state the terms To state that the check will not be processed The method to revoke authorization does not need to be included As the customer can not revoke authorizations RO7 codes can not be received for POP payments POP Receipt Requirement The merchant must provide a receipt that contains the following information The Merchant s Name The Merchant s telephone number The date of the transaction The transaction amount The source document check serial number Some unique number that identifies the location of the transaction Terminal City Terminal State POP Formatting Requirements The following format requirements apply to an POP transaction Individual name is optional If used then it can include the consumer s name or a reference number As the individual name is optionally an RDFI cannot return a point of purchase entry using the return codes RO3 and R17 Check serial number is to be placed in the check serial number field of the POP entry An RDFI is required to print the check serial number on the consumer s bank statement A 4 character number or abbreviation is to be used to indicate the Terminal City field and will be passed in the Terminal City Field An RDFI is required to print the terminal City on the consumer s bank statement A 2 character abbreviation for the state in which the electronic terminal is located will be passed in the Terminal State field An RDFI i
30. ayments timeline 26 ACH Receiver 14 agreement service 10 ARC payments 8 14 requirements 18 authorization format 17 NACHA resource 23 requirements 17 B B2B lt Emphasis gt see Business to Business B2C lt Emphasis gt see Business to Consumer bank accounts changed account information 52 Banking Day 14 Business to Business format accounts 8 Business to Consumer format accounts 8 C CCD payments 14 Payflow ACH Payment Service Guide requirements 17 communications errors 60 consumer authorization 17 Credit payments 9 14 retries 10 credits exceeding original amount 9 maximum amount 9 non reference 9 D DDA 14 Debit Sale payments 9 14 debits maximum amount 9 Depository Account 14 E EDI 14 enrolling for Payflow ACH Payment Service 7 Inquiry 15 example 41 insufficient funds retrying 10 L logging payment information 42 M maximum amount credits 9 debits 9 63 N NACHA authorization requirements 17 regulations 17 status codes 50 NOC 15 31 lt Emphasis gt see Notification of Change non reference credits 9 Notification of Change 15 31 52 O ODFI 15 Operator ACH 14 Originator 15 ORIGRESULT value 53 P Payflow ACH Payment Service enrolling 7 payment logging 42 payment response ORIGRESULT parameter 53 PNREF parameter 53 RESPMSG parameter 53 RESULT parameter 53 STATUS parameter 54 payment types ARC 8 14 CCD 14 POP 8 15 PPD 8 15 Prenotification 15 RCK 8 15
31. ayments are sent for settlement on Monday at 7 p m If a payment is unsuccessful for reasons such as a bad bank account number insufficient funds a dispute and so on PayPal gets a return from the ACH network usually within 2 4 business days of payment submission For Business to Business transactions a business has two days to dispute a charge For Business to Consumer the consumer can dispute a charge up to 60 days after the payment was processed Disputes are resolved through returns Payflow ACH Payment Service Guide 13 14 About ACH Payments ACH Terminology ACH Terminology TABLE 2 1 ACH terminology ACH Operator ACH Receiver ARC Automated Clearing House Network ACH Banking Day CCD Credit Debit Sale Demand Deposit Account DDA Depository Account EDI An ACH Operator is a central clearing facility that provides distribution and settlement of electronic payments ACH Operators clear debits and credits electronically rather than through the physical movement of checks Currently there are four ACH Operators the Federal Reserve System which clears approximately 80 of all ACH payments Visanet ACH New York ACH and American ACH All disbursements occur through the operator ACH receivers are customers employees and other businesses that have authorized electronic payments by Direct Deposit Direct Payment or Financial EDI to be applied against their depository bank accounts
32. ce Requirements on page 22 Telephone TEL indicates verbal customer authorization over the telephone See TEL Authorization Requirements on page 23 Over the Internet WEB indicates customer authorization over the Internet NOTE If you specify Over the Internet for a Credit payment then you must provide the Original Payment ID of an earlier Debit Sale payment and the Amount must be empty or the exact amount of the original Debit Sale payment Other PPD indicates another approved authorization method See the online help for guidance Mode Specify Live or Test payments Billing Information Company Name Account holder s company name Bill Address Street address for the account number and street name Bill City City of account holder s address Bill State State of account holder s address Bill Zip Code Account holder s 5 to 9 digit ZIP code Do not use spaces dashes or non numeric characters Bill Email Account holder s e mail address 34 Payflow ACH Payment Service Guide Using PayPal Manager to Perform ACH Payments bo Submitting a Single ACH Payment TABLE 5 1 Manual ACH Payments page fields Continued Field Description Shipping Information Fill in this section only if the shipping information differs from the billing information Ship First Name First Name for shipment Ship Last Name Last Name for shipment Ship Address Street address number and street name for shipment
33. cover the amount of the debit entry Previously active amount has been closed by the customer of RDFI Account number does not correspond to the individual identified in the entry or the account number designated is not an open account Account number structure is not valid ODFI requested the RDFI to return the entry Receiver has revoked authorization Receiver of a recurring debit has stopped payment of an entry Collected funds are not sufficient for payment of the debit entry Receiver has advised RDFI that originator is not authorized to debit his bank account To be used when returning a check truncation entry RDFI unable to post entry destined for a bank account maintained at a branch sold to another financial institution Financial institution does not receive commercial ACH entries The representative payee authorized to accept entries on behalf of a beneficiary is either deceased or unable to continue in that capacity Other than representative payee deceased 1 the beneficiary entitled to payments is deceased or 2 the bank account holder other than a representative payee is deceased Payflow ACH Payment Service Guide Responses to ACH Payment Requests ACH Status Codes TABLE 8 2 NACHA return codes Continued Code Description Detail R16 Bank account frozen Funds in bank account are unavailable due to action by RDFI or legal order R17 File record edit criteria Fields rejected by RDFI processing i
34. d missing or invalid PARES 1042 Buyer Authentication Service Validate Authentication failed PARES format is invalid 1043 Buyer Authentication Service Validate Authentication failed Cannot find successful Verify Enrollment 1044 Buyer Authentication Service Validate Authentication failed Signature validation failed for PARES 1045 Buyer Authentication Service Validate Authentication failed Mismatched or invalid amount in PARES 1046 Buyer Authentication Service Validate Authentication failed Mismatched or invalid acquirer in PARES Payflow ACH Payment Service Guide 59 60 Responses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8 5 Payflow transaction RESULT values and RESPMSG text Continued RESULT 1047 1048 1049 1050 1051 1052 RESPMSG and Explanation Buyer Authentication Service Validate Authentication failed Mismatched or invalid Merchant ID in PARES Buyer Authentication Service Validate Authentication failed Mismatched or invalid card number in PARES Buyer Authentication Service Validate Authentication failed Mismatched or invalid currency code in PARES Buyer Authentication Service Validate Authentication failed Mismatched or invalid XID in PARES Buyer Authentication Service Validate Authentication failed Mismatched or invalid order date in PARES Buyer Authentication Service Validate Authentication failed This PARES was al
35. dentified in return addenda R18 Improper effective entry date Entries have been presented prior to the first available processing window for the effective date R19 Amount field error Improper formatting of the amount field R20 Non payment bank account Entry destined for non payment bank account defined by reg D R21 Invalid company ID number The company ID information not valid normally CIE entries R22 Invalid individual ID number Individual id used by receiver is incorrect CIE entries R23 Credit entry refused by receiver Receiver returned entry because minimum or exact amount not remitted bank account is subject to litigation or payment represents an overpayment originator is not known to receiver or receiver has not authorized this credit entry to this bank account R24 Duplicate entry RDFI has received a duplicate entry R25 Addenda error Improper formatting of the addenda record information R26 Mandatory field error Improper information in one of the mandatory fields R27 Trace number error Original entry trace number is not valid for return entry or addenda trace numbers do not correspond with entry detail record R28 Transit routing number check digit Check digit for the transit routing number is incorrect error R29 Corporate customer advises not RDFI has bee notified by corporate receiver that authorized debit entry of originator is not authorized R30 RDFI not participant in check Financial institution not participating i
36. e ACH Operator Returns occur for a number of reasons See NACHA Return Status Codes on page 50 The Status Code of a payment reflects the return status and appears on the PayPal Manager Payment Detail page described on page 48 While setting up your Payflow ACH Payment account you specified one of the following configurations for retries e Disable retries for NSF payments the default setting for Payflow ACH Payment accounts e Enable retries for NSF payments with a maximum of two retries If you enabled retries then you also specified a retry interval of one to seven banking days Note For RCK format payments one retry maximum is performed regardless of this setting Payflow ACH Payment Service Guide How Payflow ACH Payment Works ES Notifications of Change Payment Cycle With Retries Disabled Upon submission for settlement the payment status is PO2 After submission of settlement files the status changes to P03 When an NSF return happens on the consumer bank account the status changes to RO1 The payment now ends and your bank account is not credited Payment Cycle With Retries Enabled If NSF retries are enabled for your Payflow ACH Payment account then when a debit entry on the consumer side is returned due to NSF the payment is retried up to a maximum of two times as summarized in Table 4 1 TABLE 4 1 Retry Cycle Status NSF Description of Activities and Status Code Retries Until the first retry the
37. e error message will be returned to the merchant if the amount is exceeded The error message will read RCK limit has been exceeded e Indicate on the document that the item has been returned for insufficient or uncollected funds e Be dated less than 180 days from the date the entry is transmitted to the RDFI e Be drawn on a consumer account e The item must have been presented no more than twice in paper form as well as no more than once in paper form if an RCK entry is to be retried once No more than one retry is allowed e For NSF Retry logic RCK transactions can only be retried once e Only the face amount of the item can be submitted Payflow ACH Payment Service Guide 21 Summary of Authorization Requirements Summary of TEL Requirements RCK Notice Requirements The merchant must provide notice to the check writer prior to resubmitting via ACH of the intention to submit electronically The notice must clearly state the terms of the Re presented Check Entry policy RCK Retention of Item The merchant must retain a copy of the front and back of the item for seven years from the settlement date of the RCK entry If the check has finally been paid this must be indicated on the copy 60 day return policy applies to RCK RCK Formatting Requirements The following format requirements apply to an RCK transaction e REDEPCHECK appears in the Company Entry Description Field of the Company Batch Header Record
38. e made in person at the point of purchase Because you must obtain the ABA routing number account number and check serial number from the check using a check reader device you can submit POP payments only using the Payflow Pro SDK and not from PayPal Manager See Summary of POP Requirements on page 19 for other requirements e RCK Re Presented Check Entry Re present a returned check into an electronic debit RCK payments have a payment limit of 2500 and can be retried only once See Summary of RCK Requirements on page 21 for other requirements Electronic check payment types e TEL Telephone Initiated Entry Single entry Debit Sale with verbal telephone authorization by the consumer See Summary of TEL Requirements on page 22 for other requirements e WEB Internet Initiated entry Single entry Debit Sale with authorization by the consumer over the Internet Additionally you can perform referenced credits for the same amount as the original Debit Sale amount In accordance with NACHA regulations you must specify that authorization for payment was received through the Internet This option is described in Table 5 1 Manual ACH Payments page fields on page 33 Other payment type e PPD Prearranged Payment and Deposit Entry PPD payments Use PPD when the payment is An independent credit 8 Payflow ACH Payment Service Guide Signing Up for Payflow ACH Payment Service How To Sign Up A
39. e of the payment The payment is batched at the end of each banking day at 7 p m Day 5 The ODFI submits the payment to the ACH Network operator Federal Reserve The customer bank account is credited Example of a Business to Consumer Credit Payment With a Customer Side Return This timetable describes a typical successful Business to Business credit payment in which a merchant credits the customer bank account for returned goods or a company depositing payroll deposit into employee bank account with an ACH payment and the Payflow ACH Payment account is configured for three posting days Day 1 You send the payment to PayPal PayPal validates the payment format logs the payment and initiates merchant side of the payment to debit your bank account Payments are batched at the end of each day prior to a banking day and at 7 p m normally Sunday through Thursday Payflow ACH Payment Service Guide How Payflow ACH Payment Works ES ACH Payment Types Day 2 The ODFI submits the payment to the ACH Network operator Federal Reserve Your bank account is debited This is the first day of the three posting days before depositing into customer bank account Day 3 This is a wait day Day 4 This is the third day of the three posting days PayPal initiates the customer side of the payment The payment is batched at the end of each banking day at 7 p m See Payment Batch Settlement Time on page 25 Day 5 The ODFI submits the
40. ed and the transaction was approved e A value less than zero indicates that a communication error occurred In this case no transaction is attempted e A value greater than zero indicates a decline or error The response message RESPMSG provides a brief description for decline or error results 54 Payflow ACH Payment Service Guide Responses to ACH Payment Requests aa RESULT Codes and RESPMSG Values RESULT Values for Transaction Declines or Errors For non zero Results the response string includes a RESPMSG name value pair The exact wording of the RESPMSG shown in bold may vary Sometimes a colon appears after the initial RESPMSG followed by more detailed information TABLE 8 5 Payflow transaction RESULT values and RESPMSG text RESULT RESPMSG and Explanation 0 Approved 1 User authentication failed Error is caused by one or more of the following e Login information is incorrect Verify that USER VENDOR PARTNER and PASSWORD have been entered correctly VENDOR is your merchant ID and USER is the same as VENDOR unless you created a Payflow Pro user All fields are case sensitive e Invalid Processor information entered Contact merchant bank to verify e Allowed IP Address security feature implemented The transaction is coming from an unknown IP address See PayPal Manager online help for details on how to use Manager to update the allowed IP addresses e You are using a test not active account to submit a transacti
41. er s Notifications of Change report described in PayPal Manager online help to help you in updating your organization s records TABLE 8 3 Notification of Change codes Code Col C02 C03 C04 COS C06 Reason Incorrect bank account number Incorrect transit routing number Incorrect transit routing number and bank account number Bank account name change Incorrect payment code Incorrect bank account number and transit code Description Bank account number incorrect or formatted incorrectly Once valid transit routing number must be changed Once valid transit routing number must be changed and causes a change to bank account number structure Customer has changed name or ODFI submitted name incorrectly Entry posted to demand account should contain savings payment codes or vice versa Bank account number must be changed and payment code should indicate posting to another account type demand savings Payflow ACH Payment Service Guide Responses to ACH Payment Requests Payment Responses TABLE 8 3 Notification of Change codes Continued Code Reason Description C07 Incorrect transit routing number bank account number and payment code C09 Incorrect individual ID number C10 Incorrect company name Cll Incorrect company identification C12 Incorrect company name and company ID valid and must be changed Changes required in three fields indicated Individual s ID number is
42. igning Up for Payflow ACH Payment Service How To Sign Up NoTE To support both payment formats you must register for a separate Payflow ACH Payment account for each format Business to Business Payment Format Account Business to Business format accounts support payments for which the target bank account belongs to a business These Cash Concentration or Disbursement CCD payments are authorized in a paper transaction with offline authorization Businesses can dispute that they authorized a CCD payment for 48 hours Business to Business format is also known as B2B Business to Consumer Payment Format Account Business to Consumer format accounts support payments for which the target bank account belongs to a consumer Consumers can dispute that they authorized a payment resulting in a return for up to 60 days Business to Consumer format is also known as B2C Business to Consumer format accounts allow the following payment types Paper check payment types e ARC Accounts Receivable Entry Convert a single check received by US mail or by drop box into an electronic Debit Sale Because you must obtain the ABA routing number account number and check serial number from the check using a check reader device you can submit ARC payments only using the Payflow Pro SDK and not from PayPal Manager See Summary of ARC Requirements on page 18 for other requirements e POP Point of Purchase Entry Single entry Debit Sale for purchas
43. ion over the Internet 16 Payflow ACH Payment Service Guide Summary of Authorization Requirements Before submitting an ACH payment you must first obtain authorization from the customer to debit their bank account for the amount due The following summary of authorization and other requirements is abstracted from ACH Compliance Manual How to Comply with ACH Related Rules and Regulations copyrighted 2003 by NACHA and available from NACHA at www nacha org The purpose of this chapter is not to replace your research into NACHA regulations but to provide a basis of understanding Summary of CCD and PPD Authorization Requirements Before you submit an ACH Payment to PayPal you are required to receive full authorization from the customer for the payment CCD and PPD Debit Authorization For CCD or PPD payments the requirements of NACHA are in line with the Regulation E requirements of the Federal Reserve Board You should be aware however that NACHA s rules apply to authorizations for both one off and recurring transactions while Regulation E covers only authorizations for recurring transactions When obtaining authorization for payment include the following key items e A payment cannot be revoked by the customer unless you the merchant have first been notified e Specify the manner in which a customer can revoke payment Format of CCD and PPD Authorization e Authorization for the transaction either can be in
44. ion type 25 Failed to create a socket 26 Failed to initialize socket layer 27 Parameter list format error invalid name length clause 28 Parameter list format error name 29 Failed to initialize SSL connection 30 Invalid timeout value 31 The certificate chain did not validate no local certificate found 32 The certificate chain did not validate common name did not match URL 40 Unexpected Request ID found in request 41 Required Request ID not found in request 99 Out of memory 100 Parameter list cannot be empty 103 Context initialization failed 104 Unexpected transaction state 105 Invalid name value pair request 106 Invalid response format 107 This XML Pay version is not supported 108 The server certificate chain did not validate Payflow ACH Payment Service Guide 61 az Responses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8 6 RESULT values for communications errors Continued RESULT Description 109 Unable to do logging 111 The following error occurred while initializing from message file lt Details of the error message gt 113 Unable to round and truncate the currency value simultaneously 62 Payflow ACH Payment Service Guide Index A ABA Routing Number test 45 account formats Business to Business 8 Business to Consumer 8 account number for testing 45 account settings 9 ACH 14 Operator 14 overview 11 parameters 37 ACH Payment server 37 ACH p
45. k eed Beier id Stuer tee Gad epee aA 45 Test ABA Routing Number 2 2 2 e 45 Test Bank Account Numbers 0 000 eee ee 45 Simulating a Successful Settlement 2 e 46 Simulating Returns iae aa a A aa D a pi a a E a a e aa 46 Simulating Returns Using the Payment Amount 46 Alternative Simulating Returns Using the Bank Account Number 46 Simulating NSF Retries aoaaa aaa a 47 Chapter 8 Responses to ACH Payment Requests 49 AGH Statuis Codes i iia nac e eth Bel aoe tee AE ee eo ar i Bye eg a 49 Payflow Status Codes 000 0 2 ee 49 NACHA Return Status Codes 2 1 2 a a a a a 50 ACH NOC Codes 2 1 a 52 Payment Responses 2 0 0 eee 53 PNREF Value 54 RESULT Codes and RESPMSG Values 2 2 000022555 54 RESULT Values for Transaction Declines or Errors ooo a a 55 RESULT Values for Communications Errors aoaaa a a 60 Inde ee aos ss rc id Bee e a a ra a e DS Payflow ACH Payment Service Guide 5 fon Contents 6 Payflow ACH Payment Service Guide Signing Up for Payflow ACH Payment Service IMPORTANT Be sure to read the steps involving account setup even if you are already enrolled for a Payflow ACH Payment account The Payflow ACH Payment Service enables you to process payments through the ACH network allowing you to request a credit or debit from a
46. n automated truncation program check safekeeping application R31 Permissible return entry CCD and RDF has been notified by the ODFI that it agrees to CTX only accept a CCD or CTX return entry R32 RDFI non settlement RDFT is not able to settle the entry Payflow ACH Payment Service Guide 51 52 Responses to ACH Payment Requests ACH NOC Codes TABLE 8 2 NACHA return codes Continued Code R33 R34 R35 Description Return of XCK entry Limited participation RDFI Return of improper debit entry Detail RDFI determines at its sole discretion to return an XCK entry an XCK return entry may be initiated by midnight of the sixtieth day following the settlement date if the XCK entry RDFI participation has been limited by a federal or state supervisor ACH debit not permitted for use with the CIE standard entry class code except for reversals ACH NOC Codes The ACH network provides Notifications of Change NOCs notification that something about a bank account has changed For example if you submit a payment for which the name on the bank account has changed then PayPal receives a NOC that lists the corrected information After receiving a NOC PayPal corrects subsequent payments for the affected bank account using the updated information This means that even if you submit a new payment using the old information PayPal submits the payment using the updated information You can use PayPal Manag
47. n is received orally the merchant must tape record the authorization or have at an earlier date provided written notice that is followed up with an oral authorization The following information must be included in the authorization The date on or after which the consumer s account will be debited The amount The customer s name A telephone number that is available to the customer and answered during normal business hours The date of the customer s oral authorization A statement by the merchant that the authorization obtained will be used to originate an ACH debit TEL Risk Management Merchants must implement risk management procedures relating to TEL entries Commercially reasonable procedures to verify the identity of the customer Commercially reasonable procedures to verify routing numbers are valid TEL Returns RO7 is not an applicable return codes for a TEL transactions Further Reading The summary information that appears in this chapter is taken from ACH Compliance Manual How to Comply with ACH Related Rules and Regulations copyright 2003 by NACHA Electronic Funds Transfer Act Regulation E Uniform Commercial Code Federal Reserve Regulation CC Payflow ACH Payment Service Guide 23 Summary of Authorization Requirements Further Reading 24 Payflow ACH Payment Service Guide How Payflow ACH Payment Works This chapter describes Payflow ACH Payment in detail In This Chapter e
48. ncial institution that provides depository bank account services to customers employees and businesses and accepts electronic debits and credits to and from those bank accounts The time interval between and 7 banking days between receiving an NSF return and retrying the payment You specify this value when configuring your Payflow ACH Payment Service account Payment that is returned due to reasons like Non sufficient Funds NSF Returns are initiated by the RDFI Payflow ACH Payment Service Guide 15 ae About ACH Payments ACH Terminology TABLE 2 1 ACH terminology SEC Code Standard Entry Class code Three letter code that uniquely identifies the type of ACH payment for example TEL TEL Telephone Initiated Entry Single entry Debit Sale with verbal telephone authorization by the consumer See Summary of TEL Requirements on page 22 for other requirements Payflow ACH Payment PayPal is a third party processor originating ACH payments on behalf of the biller Service Void A Void payment cancels a Debit Sale payment A Void payment requires the Original Payment ID of an earlier Debit Sale payment You can Void any payment in status P02 or P04 P02 is the state of a transaction waiting to settle the first time P04 is the state of a retried transaction waiting to be settled You cannot void a Void payment WEB payment A class of Business to Business payment for which you obtained customer authorizat
49. nt Information on page 42 Payflow ACH Payment Server Submit ACH payment requests to the ACH servers at payflowpro paypal com ACH Payment Parameters Use the parameters listed in Table 6 1 to perform ACH payment activities Required and optional parameters are noted Note Payflow Pro Developer s Guide provides a list of parameters that you can pass for reporting purposes TABLE 6 1 ACH payment parameters Parameter Description Required Type Length ABA Target Bank s transit ABA routing number Yes Numeric 9 ACCT Customer s bank account number Yes Numeric 17 Payflow ACH Payment Service Guide 37 az Using the Payflow Pro SDK to Perform ACH Payments ACH Payment Parameters TABLE 6 1 ACH payment parameters Continued Parameter ACCTTYPE AMT AUTHTYPE CHKNUM COMMENT COMMENT2 CUSTREF DESC Description Customer s bank account type Savings S or Checking C Dollar amount US dollars The type of authorization received from the payer Defaults to CCD for B2B format accounts Defaults to PPD standard customer authorization method for B2C format accounts You can specify the following values for B2C format accounts TEL Debit authorization obtained by telephone POP Point of Purchase check entry for a single entry debit ARC Accounts Receivables check entry for a single entry debit RCK Re presented check entry for a single entry debit WEB The customer authori
50. nt of purchase The consumer presents a check or share draft that has not been previously voided or negotiated You use a check reading device to capture the MICR information from the check The amount is keyed in The source document is returned to the customer voided POP Legal Framework The POP entry is subject to NACHA operating rules the Electronic Funds Transfer Act and Regulation E The POP entry is considered to be an ACH transaction throughout the processing of the payment and does not need to be abide by Check law or the Uniform Commercial Code POP Eligibility An item must comply to the following if the item is to be eligible as an POP entry e The check or source document has not been previously negotiated e The check or share draft has not been previously voided e The check or share draft contains a pre printed serial number e The check or share draft is drawn only a consumer account e The check or share draft is not a corporate check third party check credit card check money order or travelers check Payflow ACH Payment Service Guide 19 20 Summary of Authorization Requirements Summary of POP Requirements POP Authorization Requirements The merchant must obtain authorization of the payment through compliance with NACHA guidelines and a copy is to be provided to the customer The authorization is required To be in writing signed or similarly authenticated by the Merchant To be identifiable as an ACH debit
51. nto your the merchant s bank account Generic term for Checking or Savings bank account See Demand Deposit Account Computer to computer transmission of a payment and related information in a standard format Payflow ACH Payment Service Guide About ACH Payments ACH Terminology TABLE 2 1 ACH terminology Inquiry NACHA Notification of Change NOC Originating Depository Financial Institution ODFI Originator POP PPD Prenote Prenotification RCK Receiving Depository Financial Institution RDFI Retry Interval Return The Inquiry function returns the consumer side result You can run an Inquiry against a Debit Credit or Void payment type You can look up the information either by submitting a PNREF in the ORIGID field or by submitting the CUSTREF with the value that you created while submitting the payment National ACH Association Rule making standards body for the ACH Network and other payments systems See_www nacha org for details Response from an ODFI indicating that bank account information has changed and should be updated in merchant records ODFT is a financial institution that initiates and warrants electronic payments through the ACH network on behalf of its customers PayPal connects to an ODFI to implement ACH service The ACH Originator is a company or other business entity that creates entries for introduction into the ACH network for example a billing company
52. on is limited in that it can only return values of RO1 R02 and R03 Submit a bank account number from Table 7 2 in a Debit or Credit payment to receive the associated status code The status appears in the Status Code column of the PayPal Manager Transaction Detail page described on page 48 46 Payflow ACH Payment Service Guide Testing ACH Payments Using the Payflow SDK Simulating NSF Retries R status codes are described in NACHA Return Status Codes on page 50 TABLE 7 2 Generating a particular settlement status ABA Routing Settled Number Bank Account Number Initial Status Status Code 111111118 1234567801 P02 ROI 111111118 1234567802 P02 R02 111111118 1234567803 P02 R03 111111118 Any account number other than P02 R03 1111111111 1234567801 or 1234567802 Simulating NSF Retries If your Payflow ACH Payment account is configured to perform NSF retries then you can use simulated payments to move through the sequence of status codes shown in Table 7 3 The status codes appear on a schedule based on the retry interval that you specified when configuring your Payflow ACH Payment account To simulate this process submit a payment that generates an RO1 result Table 7 3 reflects the sequence of Status Codes TABLE 7 3 Generating a retry Condition of Payment Status Code NSF Retries Timeline Payment submitted P02 N A 0 Payment settled P03 N A 7 p m on Banking day NSF R01 is received N A within an hour
53. on to the live PayPal servers Change the host address from the test server URL to the live server URL 2 Invalid tender type Your merchant bank account does not support the following credit card type that was submitted 3 Invalid transaction type Transaction type is not appropriate for this transaction For example you cannot credit an authorization only transaction 4 Invalid amount format Use the format 4 Do not include currency symbols or commas 5 Invalid merchant information Processor does not recognize your merchant account information Contact your bank account acquirer to resolve this problem 6 Invalid or unsupported currency code 7 Field format error Invalid information entered See RESPMSG 8 Not a transaction server 9 Too many parameters or invalid stream 10 Too many line items 11 Client time out waiting for response 12 Declined Check the credit card number expiration date and transaction information to make sure they were entered correctly If this does not resolve the problem have the customer call their card issuing bank to resolve Payflow ACH Payment Service Guide 55 56 Responses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8 5 Payflow transaction RESULT values and RESPMSG text Continued RESULT 13 14 19 20 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 50 51 99 RESPMSG and Explanation Referral Transaction cannot be a
54. otifications of Change 32 Payflow ACH Payment Service Guide Using PayPal Manager to Perform ACH Payments This chapter provides instructions for submitting a single ACH payment using PayPal Manager For details on using PayPal Manager see PayPal Manager online help For instructions on submitting ACH payments using the Payflow Pro SDK see Chapter 6 Using the Payflow Pro SDK to Perform ACH Payments IMPORTANT You must comply with NACHA rules regarding how you obtain permission from the bank account holder to submit an ACH payment See Chapter 3 Summary of Authorization Requirements Submitting a Single ACH Payment Follow these instructions to submit a single ACH payment using PayPal Manager 1 From the Perform Transactions page click Single Transaction The Perform Transaction Step 1 page opens 2 Select ACH for Tender Type 3 Select the Transaction Type and the Transaction Mode Test or Live Then click Submit 4 In the Perform Transaction Step 2 page that opens fill in the fields described in Table 5 1 and click Submit TABLE 5 1 Manual ACH Payments page fields Field Description Payment Type Debit Sale Credit Void or Prenote Original Payment Identifies the payment to be voided This value is required only for Void ID payments or WEB Credits The value is optional for CCD Credits For WEB Credits the credit amount must be exactly the same as the original Debit Sale First Name
55. p ORIGRESULT 0 amp STATUS R02 amp RESPMSG Accou nt closed Payflow ACH Payment Service Guide 41 42 Using the Payflow Pro SDK to Perform ACH Payments Logging Payment Information RESULT 0 amp TRANSSTATE 6 amp CUSTREF amp ORIGRESULT 0 amp STATUS P04 amp RESPMSG Settle RESULT 0 amp TRANSSTATE 1 amp CUSTREF amp ORIGRESULT 1 amp STATUS P15 amp RESPMSG PNI front end edit failed RESULT 0 amp TRANSSTATE 6 amp CUSTREF amp ORIGRESULT 0 amp STATUS P02 amp RESPMSG Pending waiting to settle RESULT 0 amp TRANSSTATE 8 amp CUSTREF amp ORIGRESULT 0 amp STATUS P03 amp RESPMSG Submitted for settlement Example Void Use TRXTYPE V and the ORIGID of the previously submitted ACH payment to Void a payment You must perform a Void before the first settlement TRXTY PE V amp TENDER A amp PARTNER PayPal amp ACCT 6355059797 amp ACCTTY PE C amp ABA 0 9100001 9 amp VENDOR SuperMerchant amp USER SuperMer chant amp PW D xly2z3 amp 0RIGID VXYZ01475826 Example Void Response RESULT 0 amp PNREF V63D15597698 amp RESPMSG Approved Example Prenote Payment A prenotification is a payment with no amount that you can use to verify bank account validity Receiving banks are not required to respond to prenotification payments Use PRENOTE Y and AMT 0 00 TRXTY PE S amp PRENOTE Y amp AC
56. payment to the ACH Network operator Federal Reserve The customer bank account is credited Day 6 PayPal receives a return for the customer debit from ODFI Returns occur for a number of reasons See NACHA Return Status Codes on page 50 Since the merchant side of the payment has settled PayPal initiates an offset payment to credit your bank account Day 7 The ODFI submits the payment to the ACH Network operator Federal Reserve Your bank account is credited ACH Payment Types Payments are collected daily until the merchant specified settlement time is reached at which time all payments are submitted to the ODFI for settlement Debit Sale A Debit Sale payment transfers funds from the customer s bank account into your the merchant s bank account Credit A Credit payment transfers funds from your bank account into the customer s bank account A Credit payment requires the Original Payment ID of an earlier Debit Sale payment and the submitted Amount must be empty or the exact amount of the original Debit Sale payment Inquiry The Inquiry function returns the consumer side result You can run an Inquiry against a Debit Credit or Void payment type You can look up the information either by submitting a PNREF in the ORIGID field or by submitting the CUSTREF with the value that you created while submitting the payment Payflow ACH Payment Service Guide 29 30 How Payflow ACH Payment Works Retrying Returned
57. pproved electronically but can be approved with a verbal authorization Contact your merchant bank to obtain an authorization and submit a manual Voice Authorization transaction Invalid Client Certification ID Check the HTTP header If the tag X VPS VIT CLIENT CERTIFICATION ID is missing RESULT code 14 is returned Original transaction ID not found The transaction ID you entered for this transaction is not valid See RESPMSG Cannot find the customer reference number Invalid ABA number Invalid account number Check credit card number and re submit Invalid expiration date Check and re submit Invalid Host Mapping You are trying to process a tender type such as Discover Card but you are not set up with your merchant bank to accept this card type Invalid vendor account Login information is incorrect Verify that USER VENDOR PARTNER and PASSWORD have been entered correctly VENDOR is your merchant ID and USER is the same as VENDOR unless you created a Payflow Pro user All fields are case sensitive Insufficient partner permissions Insufficient user permissions Invalid XML document This could be caused by an unrecognized XML tag or a bad XML format that cannot be parsed by the system Duplicate transaction Error in adding the recurring profile Error in modifying the recurring profile Error in canceling the recurring profile Error in forcing the recurring profile Error in reactivating the recurring profile OLTP Transac
58. produces debit entries from customers financial institution bank accounts who have authorized direct payment for products and services Point of Purchase Entry Single entry Debit Sale for purchase made in person at the point of purchase Because you must obtain the ABA routing number account number and check serial number from the check using a check reader device you can submit POP payments only using the Payflow Pro SDK and not from PayPal Manager See Summary of POP Requirements on page 19 for other requirements Prearranged Payment and Deposit Entry One of the SEC payment types supported by PayPal PPD payments perform business to customer transfers Common applications Direct deposit a credit transfer into a customer s bank account at the RDFI Pre authorized bill payment is a debit application in which the customer grants authority to initiate periodic charges to the customer s bank account Prenote refers to a Prenotification payment with no monetary amount transferred that you can use to verify bank account validity Receiving banks RDFIs are not required to respond to a Prenotification payment Prenotifications are not settleable payments however they can be voided Re Presented Check Entry Re present a returned check into an electronic debit RCK payments have a payment limit of 2500 and can be retried only once See Summary of RCK Requirements on page 21 for other requirements An RDFT is a fina
59. r to a banking day and at 7 p m normally Sunday through Thursday Day 5 The ODFI submits the payment to the ACH Network operator Federal Reserve your bank account is credited Example of a Business to Business Sale Debit Payment With a Customer Return Within Three Posting Days This timetable describes a Business to Business sale debit payment in which a customer pays a company with an ACH payment and the Payflow ACH Payment account is configured for three posting days The ODFI generates a customer side return i e payment is reversed within 48 hours Day 1 The customer initiates payment and you submit a payment to PayPal PayPal validates the payment format initiates the customer side of the payment Payments are batched at the end of each day prior to a banking day and at 7 p m normally Sunday through Thursday Payflow ACH Payment Service Guide How Payflow ACH Payment Works ES Timetable for a Typical ACH Payment Day 2 The ODFI submits the payment to the ACH Network operator Federal Reserve The customer bank account is debited This is the first day of the three posting days Day 3 PayPal receives a return for the customer debit from ODFI Returns occur for a number of reasons See NACHA Return Status Codes on page 50 Assume that this return is not retried The payment status shows the return code indicating the failure Since the merchant side of the payment is not settled the payment is voided and is not
60. rMerchant amp USER SuperMerch ant amp PWD x1y2z3 amp ORIGID VXYZ01475826 Example Credit Response RESULT 0 amp PNREF V63D15597698 amp RESPMSG Approved Example Inquiry Unlike credit card processing the ACH system does not immediately return payment status Use the INQUIRY function to determine the status of a payment You perform inquiries using a reference to the original payment either the PNREF value returned for the original payment or the CUSTREF value that you specified for the original payment The results reflect the customer side of the payment and not the merchant side Norte The status of any payment does not change more than once per day so more frequent inquiries are unnecessary Using the PNREF to Perform Inquiry Transactions Set ORIGID to the PNREF Transaction ID value returned for the original payment Using the CUSTREF to Perform Inquiry Transactions Specify the CUSTREF value and optionally the STARTTIME and ENDTIME parameters IMPORTANT f there are multiple payments with a particular CUSTREF value then the Inquiry transaction returns only the first payment with the specified CUSTREF To ensure that an Inquiry accesses the correct payment you must use a unique CUSTREF when submitting any payment including retries Example Inquiry TRXTYPE I amp ORIGID V33D00004098 amp PWD 12 3password amp USER Admin Example Responses RESULTRESULT 0 amp TRANSSTATE 1 1 amp CUSTREF am
61. ready validated for a previous Validate Authentication transaction RESULT Values for Communications Errors A value for RESULT less than zero indicates that a communication error occurred In this case no transaction is attempted A value of 1 or 2 usually indicates a configuration error caused by an incorrect URL or by configuration issues with your firewall A value of 1 or 2 can also be possible if the PayPal servers are unavailable or an incorrect server socket pair has been specified A value of 1 can also result when there are internet connectivity errors Contact customer support regarding any other errors TABLE 8 6 RESULT values for communications errors RESULT 1 Description Failed to connect to host Failed to resolve hostname Failed to initialize SSL context Parameter list format error amp in name Parameter list format error invalid name length clause SSL failed to connect to host SSL read failed SSL write failed Payflow ACH Payment Service Guide Responses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8 6 RESULT values for communications errors Continued RESULT Description 11 Proxy authorization failed 12 Timeout waiting for response 13 Select failure 14 Too many connections 15 Failed to set socket options 20 Proxy read failed 21 Proxy write failed 22 Failed to initialize SSL certificate 23 Host address not specified 24 Invalid transact
62. recurring Debit Sale payment and authorization is not provided over the Internet A Business to Consumer Debit Sale payment and authorization is not provided over the Internet or over the telephone or it is not a reprocessed check Step 5 Work with your Account Representative to configure your account s transaction preferences You can specify the following settings for your Payflow ACH Payment account Processing Limits and Posting Days e ACH Credit processing limit The aggregate Credit transaction amount to allow for any single settlement period e ACH Credit posting days The number of days for which PayPal holds the funds Typically three days e ACH Debit Sale processing limit The aggregate Debit Sale transaction amount to allow for any single settlement period e ACH Debit Sale posting days The number of days for which PayPal holds the funds Typically three days ACH Transaction Settings These settings enable you to configure transaction limits that enhance your Payflow ACH Payment account s security These settings are separate from your credit card transaction settings e Maximum Amount for ACH debits Default setting unlimited Specify the maximum amount to allow per single payment e Maximum Amount for ACH credits Default setting unlimited Specify the maximum amount to allow for credit payments Specify 0 zero to disable credit payments for your Payflow ACH Payment account e Allow non reference
63. returned P04 Pending A re tried payment is pending settlement P05 Will not settle Status for inquiry and voided payments P06 Will not settle Status for void payments P15 Rejected Payflow server rejected the payment immediately invalid ABA Check submitted payment data Payflow ACH Payment Service Guide 49 50 Responses to ACH Payment Requests ACH Status Codes NACHA Return Status Codes Status values starting with the letter R are NACHA specification reject and return reason codes that indicate that the consumer portion of the payment has been returned typically a closed bank account invalid bank account insufficient funds or dispute If a payment is unsuccessful PayPal usually gets the return message from the ACH network within 2 to 4 business days of payment submission TABLE 8 2 NACHA return codes Code ROI R02 R03 R04 R06 R07 ROS R09 R10 R11 R12 R13 R14 R15 Description Insufficient funds Bank account closed No bank account unable to locate account Invalid bank account number Returned per ODFI request Authorization revoked by customer Payment stopped Uncollected funds Customer advises not authorized Check truncation entry return Branch sold to another RDFI RDFI not qualified to participate Representative payee deceased or unable to continue in that capacity Beneficiary or bank account holder Detail Available balance is not sufficient to
64. s not retried The payment status shows the return code indicating the failure Since the merchant side of the payment has settled PayPal initiates an offset payment to debit your bank account to reverse the payment Payflow ACH Payment Service Guide 27 28 How Payflow ACH Payment Works Timetable for a Typical ACH Payment Day 7 The ODFI submits the payment to the ACH Network operator Federal Reserve your bank account is debited for the returned customer payment Example of a Successful Business to Consumer Credit Payment This timetable describes a typical successful Business to Business credit payment in which a merchant credits the customer bank account for returned goods or a company depositing payroll deposit into employee bank account with an ACH payment and the Payflow ACH Payment account is configured for three posting days Day 1 You send the payment to PayPal PayPal validates the payment format logs the payment and initiates merchant side of the payment to debit your bank account Payments are batched at the end of each day prior to a banking day and at 7 p m normally Sunday through Thursday Day 2 The ODFI submits the payment to the ACH Network operator Federal Reserve Your bank account is debited This is the first day of the three posting days before depositing into customer bank account Day 3 This is a wait day Day 4 This is the third day of the three posting days PayPal initiates the customer sid
65. s required to print the terminal state on the consumer s bank statement Payflow ACH Payment Service Guide Summary of Authorization Requirements bey Summary of RCK Requirements POP Returns R03 R17 and RO7 are not applicable return codes for a POP transaction A merchant will need to develop procedures to handle POP returns as the consumer s name has not been captured Returns for NSF can be retried up to two more times Summary of RCK Requirements The RCK Re Presented Check Entry format is used to represent a returned check through the generation of a single entry ACH debit The RCK SEC allows for a single entry ACH debit transaction to re present a paper check after the paper check has been returned for either insufficient or uncollected funds RCK Legal Framework The RCK entry is subject to NACHA operating rules the Uniform Commercial Code and Federal Reserve Regulation CC The RCK entry is not subject to Electronic Funds Transfer Act or Regulation E RCK Eligibility An item must comply to the following if the item is to be eligible as an RCK entry e Bean item within the meaning of the Revised Article 4 of the Uniform Commercial Code e Beanegotiable demand draft drawn on or payable through or at a participating DFI This does not include a Federal Reserve Bank or a Federal Home Loan Bank e Contains a pre printed serial number e Bein an amount up to and including 2 500 e To enforce the amount limit a declin
66. sponses to ACH Payment Requests RESULT Codes and RESPMSG Values TABLE 8 4 Payment responses common to all payment types Field Description Type Length STATUS All STATUS values with the exception of values Alpha 3 starting with the letter P are NACHA National numeric Automated Clearing House Association specification reject and return reason codes Values starting with the letter P are Payflow specific values describing handling by PayPal STATUS codes are described in ACH Status Codes on page 49 PNREF Value The PNREF is a unique transaction identification number issued by PayPal that identifies the transaction for billing reporting and transaction data purposes The PNREF value appears in the Transaction ID column in PayPal Manager reports The PNREF value is used as the ORIGID value original transaction ID in credits TRXTYPE C inquiries TRXTYPE D and voids TRXTYPE V PNREF Format The PNREF is a 12 character string of printable characters for example e VADE0B248932 e ACRAF23DB3C4 Note Printable characters also include symbols other than letters and numbers such as the question mark A PNREF typically contains letters and numbers only RESULT Codes and RESPMSG Values RESULT is the first value returned in the PayflowPayPal server response string The value of the RESULT parameter indicates the overall status of the transaction attempt e A value of 0 zero indicates that no errors occurr
67. status of the payment is P04 P04 0 changing to 1 Upon submission for settlement status changes to P03 If there are no P03 1 returns then after the configured number of posting days from the date of resubmission you are credited If there is once again a return due to NSF then the payment is retried fora P04 2 second time The status changes to P04 Upon submission for settlement the status changes to P03 If there are no P03 2 returns then after the configured number of posting days from the date of resubmission you are credited If there is once again a return due to NSF then the payment fails and ROI 2 status changes to R01 Notifications of Change The ACH network provides Notifications of Change NOCs notification that something about a bank account has changed For example if you submit a payment for which the name on the bank account has changed then PayPal receives a NOC that lists the corrected information NOC codes are described in ACH NOC Codes on page 52 As part of your Payflow ACH Payment service PayPal corrects subsequent payments for the affected bank account using the updated information from the NOC This means that even if you submit a new payment using the old information PayPal submits the payment using the updated information See PayPal Manager online help for a description of the Notifications of Change report Payflow ACH Payment Service Guide 31 oe How Payflow ACH Payment Works N
68. t Time Because the ACH network operates only on banking days not on banking holidays PayPal settles at 7 p m the night before each banking day Sunday Monday Tuesday Wednesday and Thursday at 7 p m Payments submitted Thursday after 7 p m are not sent for settlement until Sunday at 7 p m Payflow ACH Payment Service Guide 25 26 How Payflow ACH Payment Works Timetable for a Typical ACH Payment Timetable for a Typical ACH Payment This section presents several example timetables Example of a Successful Business to Business Debit Sale Payment This timetable describes a typical successful Business to Business sale debit payment in which a customer pays a company with an ACH payment and the Payflow ACH Payment account is configured for three posting days Day 1 The customer initiates payment and you submit a payment to PayPal PayPal validates the payment format and initiates the customer side of the payment Payments are batched at 7 PM for each day that is prior to a banking day normally Sunday through Thursday See Payment Batch Settlement Time on page 25 Day 2 The ODFI submits the payment to the ACH Network operator Federal Reserve The customer bank account is debited This is the first day of the three posting days Day 3 This is a wait day Day 4 This is the third day of the three posting days PayPal initiates the merchant side of the payment Payments are batched at the end of each day prio
69. tion failed Invalid recurring profile ID Insufficient funds available in account Exceeds per transaction limit General error See RESPMSG Payflow ACH Payment Service Guide Responses to ACH Payment Requests c RESULT Codes and RESPMSG Values TABLE 8 5 Payflow transaction RESULT values and RESPMSG text Continued RESULT RESPMSG and Explanation 100 Transaction type not supported by host 101 Time out value too small 102 Processor not available 103 Error reading response from host 104 Timeout waiting for processor response Try your transaction again 105 Credit error Make sure you have not already credited this transaction or that this transaction ID is for a creditable transaction For example you cannot credit an authorization 106 Host not available 107 Duplicate suppression time out 108 Void error See RESPMSG Make sure the transaction ID entered has not already been voided If not then look at the Transaction Detail screen for this transaction to see if it has settled The Batch field is set to a number greater than zero if the transaction has been settled If the transaction has already settled your only recourse is a reversal credit a payment or submit a payment for a credit 109 Time out waiting for host response 110 Referenced auth against order Error 111 Capture error Either an attempt to capture a transaction that is not an authorization transaction type or an attempt to capture an authoriz
70. uthorization Requirements You are to have provided notice to the customer that on receipt of the check the check will be used as a source document for an ACH debit transaction Retention of source document You must retain an image microfilm or other copy of the front and back of the source document for a period of two years from the Settlement date of the entry Formatting Requirements The following format requirements are required to process ARC entries Payflow ACH Payment Service Guide Summary of Authorization Requirements pee Summary of POP Requirements e The original payee name is to appear in the Company Name Field of the Company Batch header e Check serial number is placed in the Check Serial Number field e Individual name is optional for the Individual Name Field but if the field is used the field can only be used to either e The consumer s name or A reference number identification number or code that you use to identify a particular transaction A generic description is not acceptable Summary of POP Requirements The POP point of purchase entry format will allow an integration with a point of purchase or swipe terminal providing an alternative to accepting consumers checks as a method of payment The POP SEC allows for a single entry ACH debit transaction for in person purchases made at the point of purchase A source document is required for written authorization and account information at the poi
71. vices Filter Declined by filters 126 Fraud Protection Services Filter Flagged for review by filters Important Note Result code 126 indicates that a transaction triggered a fraud filter This is not an error but a notice that the transaction is in a review status The transaction has been authorized but requires you to review and to manually accept the transaction before it will be allowed to settle Result code 126 is intended to give you an idea of the kind of transaction that is considered suspicious to enable you to evaluate whether you can benefit from using the Fraud Protection Services To eliminate result 126 turn the filters off For more information see the Fraud Protection Services documentation for your payments solution It is available on the PayPal Manager Documentation page 127 Fraud Protection Services Filter Not processed by filters 128 Fraud Protection Services Filter Declined by merchant after being flagged for review by filters 131 Version 1 Payflow Pro SDK client no longer supported Upgrade to the most recent version of the Payflow Pro client 132 Card has not been submitted for update 133 Data mismatch in HTTP retry request 150 Issuing bank timed out 151 Issuing bank unavailable 200 Reauth error 201 Order error 402 PIM Adapter Unavailable 403 PIM Adapter stream error 404 PIM Adapter Timeout 600 Cybercash Batch Error 58 Payflow ACH Payment Service Guide Responses to ACH Payment
72. yments How Does ACH Work The following steps occur for an ACH payment Payflow ACH Payment performs the payment in two parts In this example a Debit Sale payment the Payflow ACH Payment service first moves the money from your customer s bank account and then moves the money to your bank account 1 A customer visits the biller s Web site After customer authentication user name and password the biller s Web server presents the billing information 2 The customer reviews the bill When the customer schedules a payment your website collects the payment information and using Payflow Pro securely sends it to PayPal for processing on the date specified by the customer 3 PayPal prepares the ACH payment information and delivers it for ACH submission to the originating depository financial institution ODFI by electronic transmission over a secure connection The ACH payments are submitted to the ODFI on the customer specified payment date 4 The ODFI processes the ACH payment information and electronically delivers the information to the ACH network operator Federal Reserve The ACH network operator electronically distributes the ACH items to the customer s bank RDFI 5 The Federal Reserve credits the ODFI s bank account on settlement day for the value of all ACH debits deposited and debits the RDFI s bank account for the value of ACH items received 6 PayPal then initiates a secondary transaction to move the money
73. ype 8 16 Payflow ACH Payment Service Guide 65 66 Payflow ACH Payment Service Guide
74. zed the payment over the Internet The check serial number Required for POP ARC and RCK Optional text that you can provide for reporting auditing This text appears in the PayPal Manager ACH Settlement report described in PayPal Manager online help See COMMENT 1 Payment identifier that you the merchant provide You can search for payments in PayPal Manager using this value Optional description of the goods or services being purchased This parameter is required only for Business to Business Payflow ACH Payment accounts Required Type Yes Alpha uppercase Yes unless Numeric PRENOTE Yes if the Alpha customer uppercase authorized the payment over the Internet No otherwise No Alpha numeric No Alpha numeric No Alpha numeric Required Alpha for CCD numeric Optional for PPD WEB Length 10 with decimal point 3 128 128 80 38 Payflow ACH Payment Service Guide Using the Payflow Pro SDK to Perform ACH Payments em Example ACH Payments TABLE 6 1 ACH payment parameters Continued Parameter FIRSTNAME PRENOTE TENDER TERMCITY TERMSTATE TRXTYPE Description Bank account holder s first and last name NOTE Even though the parameter name indicates only the first name this single parameter holds all of the person s name information both first and last name at a minimum PRENOTE Y indicates a prenotification payment with no amount

PayPal Payflow - 2009 - ACH Payment Service User Guide

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