Wire Drawdown Service and Shorter Processing Windows

Kotapay is the bank that Pay-Net uses in order to facilitate direct debits and deposits via the National ACH (Automated Clearing House) Association/Network. As such, Kotapay acts as a third party in payroll processing involving electronic fund exchanges.

As an added layer of protection for our clients, the contract that a payroll client must sign with Kotapay in order to facilitate Direct Deposit, Tax Service, and automated Billing, is a three-way contract. This means if some catastrophic event left Pay-Net incapable of servicing clients, there would still be a direct relationship and contractual obligation active between Kotapay and the client.

There are a number of rules that must be adhered to in order for us to remain compliant with federal regulations. We appreciate you taking the time to review the materials below for a better understanding of some of these rules, and have also provided all current forms/contracts below.

Get to know Kotapay: https://www.kotapay.com/about 

More information about Direct Deposit: https://www.kotapay.com/directdeposit 

Learn more about NACHA here: https://www.nacha.org/content/about-us

These rules around electronic money movement are why our standard processing window is 2 business days. We can make limited exceptions, and run direct deposit for Next Day Service, but we pass on the fee that we are charged to do so, and can generally only allow three of these exceptions per quarter. 

At Pay-Net, we understand that some companies need greater flexibility in their processing windows, and may need to turn around direct deposit on a shorter window on a more frequent basis. We have a solution for you! 

With our Wire Drawdown Service, you can submit payroll as late as the business day before your check date. ACH files are sent at the close of business each day, then processed by Kotapay. Once Kotapay receives the file with your direct deposit in it, they automatically generate a wire drawdown request, which is sent to your bank. Your bank generates and releases the wire automatically, without you having to do so manually, and the payroll is funded same day (as long as the wire is received by Kotapay by 12 Noon, Pacific time).

In order to get started, review the instructions below, complete the required forms, and return to us.