Question

ACH File Encryption for Banks

  • 27 May 2020
  • 4 replies
  • 631 views
J
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We are looking to see what others may be doing when creating the ACH files out of IFS and then encrypting them before they are sent to the bank.

 

When we generate an ACH File  in APPS10, the file is created properly and it is placed in a specific location on the network.  They would then need to run it through an program to encrypt it, before they send it to the bank.  However, they would like to eliminate the need to have that file on the network first.  This would make it more secure knowing that no one could have opened it and changed it.

 

 

4 replies

NickPorter
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You could heavily restrict access to the folder and use an automated encryption tool to pick up and auto-encrypt the file before sending.  It isn’t fool proof but it should give what is requested here.

I don’t believe that IFS can output the file in any kind of encrypted format natively since you’re already (presumably) using the native ISO20022 or whichever output mechanism that doesn’t seem to have it as an option.

FWIW, we’re finding that the ISO20022 standard isn’t giving us an ACH file that aligns to our bank requirements… hopefully you have more luck with JPM.  For simplicity we’re looking at maybe needing to completely build a new ACH package and output to e.g. a CSV type file if we can’t figure out how to adjust it to be more aligned to the ISO standard.

Nick

Eranda
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Hi Nick,

NACHA has already released their ISO20022 conversion and it is possible to do ACH payment via ISO20022. I have attached some info herewith ( recent PPT which I presented)

Anyway, encryption is a challenge. IFS will provide a plain XML in the required format and if you don't directly upload the file to the bank portal, you might worry about the security of the contents. If the bank allows you to integrate the handover, it is possible to do an integration with the bank. 

Best Regards

Eranda

 

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Kind Regards, Eranda
NickPorter
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This is excellent Eranda - thank you so much for sharing.

Nick

Eranda
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You are welcome Nick. Try hard to go for a ISO20022 based Credit Transfer solution rather developing an old style ACH solution.Feel free to contact me if you have a doubt.

e.maldeniya@e-analytics.com

 

Kind Regards, Eranda

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