Treasury Management
Best Practices
Jacob Heugly – SVP Manager
Treasury Management
What is Treasury
Management?
Treasury Management solutions are proven to
help businesses operate as effectively as
possible by:
• Improving Receivables / Collection Processes
• Improving Payables / Disbursement Processes
• Accessing Financial Data Online
• Detecting and Preventing Fraud
• Short Term Investments
COLLECTIONS
Products that
streamline and
centralize a customer’s
accounts receivable
processes.
Remote Deposit
 An electronic check
clearing application that
allows organizations to
conveniently make
check deposits
electronically from the
safety and comfort of
their office.
 Accelerates cash flow by
submitting check
deposits electronically
and securely
How Your Business Benefits
 Software is easy to use
 Faster availability of
funds
 Reduces expenses
 Extended deposit
window
 Exportable files into
accounting programs
 Increased
management of funds
 Consolidation of
accounts
Merchant Services
Merchant Services Options
 Allows the client to accept credit card payments either
Over the
Phone
E-Commerce
In person
What to know before you sign!
 Pricing
 Have you done a side by side comparison?
 Interchange Plus Pricing or Bucket Pricing?
 Cancellation Fees
 Does your provider have a cancellation fee?
 Existing Lease Contract for Terminal
 Can your terminal be reprogrammed?
 Understanding of the Merchant Statement
 Fees are hidden in the statements.
 Understand the DOWNGRADES
What to know before you sign!
 Lease versus Buy


Make sure to analyze the best hardware acquisition for
what is best for your business.
Are you seasonal? Do you need a wireless machine?
 Who do you call when you have issues? Service is the
#1 complaint.
E-Commerce Merchant
Transactions
 Automate Monthly Payments

Businesses can set up automatic payments for
customers
 Receive payments online


Integrate with shopping cart to process transactions
Process credit card or ach payments (client’s want
the option)
 Virtual Terminal Capability
Solution for merchants who manually
enter credit card information
 Eliminate the expensive Terminal cost

Lockbox
Lockbox Options
 Image Lockbox


Daily imaging of all
checks, invoices, and
backup documentation.
Rather than receiving
copies of checks and
invoices via mail or
costly courier, clients
have online access to
images and reports the
day of deposit.
 Retail Lockbox


Captures data to update
an accounts receivable
system using a
computer readable scan
document (i.e.,
remittance stub,
coupon, or voucher).
A transmission file is
composed from
remittance information
contained in the scan
document and check
MICR line.
Retail Lockbox
Sample Coupon
OCR Line
OCR – Optical Character Recognition
Lockbox Benefits
 Improved Receivables Float



Mail Float
Processing Float
Clearing Float
 Reduced Staff Processing Time



Deposit Preparation
Bank Trips
Receivables Data Key Entry
 Increased Audit Controls


Separation of receivables/payables processes
Automated data entry for error reduction
DISBURSEMENTS
These tools allow a
customer to initiate
payments securely and
efficiently.
Automated Clearing House
ACH Payments
The ACH Network is an electronic funds transfer system governed
by NACHA which provides for the interbank clearing of electronic
payments for participating depository financial institutions. The
following are examples of common ACH transactions:

Direct Deposit of payroll, Social Security and other
government benefits, and tax refunds.

Direct Payment of consumer bills such as mortgages, loans,
utility bills and insurance premiums.

Business-to-business payments

E-commerce payments

Federal, state and local tax payments
Benefits of ACH
 Cost effective – typically less expensive to initiate
and reconcile than paper checks
 Flexible – later cutoff times
 Versatile – Business and Consumer transfers
 Pre-Funding – If you are a new business or have
credit issues you can pre-fund the transaction.
Positive Pay
Check and ACH
Fraud Statistics

Types of Check Fraud
 Altered Payee names on
the check issued
 Counterfeit checks that
had the organizations
own MICR line but used
another organization’s
name
 Lost, stolen or
counterfeit employee
pay checks
 Fraudulent checks
returned by Positive Pay,
then presented as ACH
debits

ACH Fraud
 Organizations are
reporting ACH payment
fraud activity on a more
regular basis
 Organizations that
suffered financial losses
from ACH say it was
because they failed to
use ACH Blocking or
Filtering service offered
by their bank.
 Business only have 48
hours to dispute an ACH
fraudulent transaction.
Payroll Cards
 Great solution for the non
bankable employee
 Reduces the risk of fraud
 Card-based, electronic paycheck
 Net pay loaded to account each
pay period – immediate access
to funds
 Visa signature-based to provide
increased utility to employee
 On-line access to balances,
transactions and current card
information
INFORMATION
REPORTING
Tools to manage and
view accounts securely
online, when it is
convenient for a
customer.
Treasury Management
Online System
Treasury Management Online
 Provides access to banking information, payment solutions,
and specialized reports available in a concise, one page
“dashboard”
 Built to fit a business’s needs and is easily customizable via
the “dashboard”
 Helps businesses effectively:

Collect funds from customers

Concentrate funds where they can be most efficiently
deployed

Disburse funds cost effectively to vendors, employees,
and investors.
 Allows businesses to conveniently manage user privileges
INVESTMENTS
Tools used to match
business’s investment
guidelines and help
capitalize on excess
cash to pay down
balances or earn
money.
Sweep Account
What is an Investment
Sweep Account?
 A tool used by customers to automatically
invest excess funds in their checking
accounts.
 Each night the excess funds are swept into
an investment account.
 If debits are presented to the checking
account, in the morning the funds will
sweep over from the investment account to
cover the debits.
Investment Sweep
Investment Sweep
ZBA Master
Account
ZBA #1
ZBA #2
What is a Cash
Manager Sweep?
 The cash manager sweep sweeps funds
from the investment account to pay down
the client’s line of credit.
 If the line of credit does not have a
balance, the funds remain in the
investment account earning interest.
Cash Manager Sweep
Investment Sweep
Line of Credit
ZBA Master
Account
ZBA #1
ZBA #2
What is a Credit Sweep?
 A credit sweep is a direct DDA to loan
sweep, which means that if there are
excess funds in the DDA and the line of
credit has a balance, it will sweep over the
funds to pay down the line.
Credit Sweep
DDA
Line of Credit