TREASURY MANAGEMENT
User Guide
Account Reconciliation
and Positive Pay Services
Table of Contents
Introduction
1
Service Options: How They Work
2
Positive Pay
2
Reverse Positive Pay
4
Check Reconciliation
6
Deposit Reconciliation
7
Additional Services and Features
8
User Tool Kit
Sample Reports
15
Report Guide
15
Report Definitions & Samples
16
Confirmation Report
16
Consolidated Deposit Reconciliation Report17
Consolidated Reconciliation Report
17
Deposit Reconciliation Detail Report
18
Deposit Reconciliation Recap Report
18
8
Full Check Reconciliation Balance Sheet
19
Contact Information
8
Miscellaneous Credits Report
20
Deadlines
9
Miscellaneous Debits Report
20
Packing List
21
11
Paid Only Reconciliation Report
22
Pay/Return Decisions
11
Partial Reconciliation Balance Sheet
22
Issue File
12
Recap of Posted Items Reconciliation Report23
Manual Issues & Voids
13
Reconciliation Diagnostic Summary Report23
General Positive Pay
13
Unpaid Only Reconciliation Report
Reverse Positive Pay
14
Reconciliation Reports
14
Holiday Schedule
Frequently Asked Questions
TM-02-1001C rev. 06/16
10
Glossary
24
25
Introduction
Thank you for choosing BBVA Compass as your account reconciliation and/or positive pay service provider. We know
you will find our products easy to use and that you will let us know if there is anything we can do to help you use these
products more successfully. Our Business Relationship Services team is ready to respond promptly and knowledgeably
whenever you need assistance.
At BBVA Compass, we firmly believe in knowing our customers. While many of our competitors have streamlined
their operations to have different individuals working various functions within the reconciliation process, our account
reconcilers are responsible for end-to-end management of your reconciliation. This gives them a more thorough
understanding of your disbursement and deposit practices and preferences so that we can easily spot any discrepancies
(such as possible fraud on your account) and provide you with service that’s just a little better.
If you should have a question about a reported exception/suspect item, your reconciler will be able to provide you with
detailed information and perform any research you need— and in most cases, turn around your request within a few
hours.
1
Service Options: How They Work
Listed below is a short description of each account reconciliation and positive pay service offered by BBVA Compass,
and an overview of how the service works. If you would like additional information about any of the options listed, please
contact your local treasury management representative or Business Relationship Services.
Positive Pay
BBVA Compass’ positive pay service helps your company control losses from check fraud. Because we honor only those
checks that match the information you provide, you can feel confident that only those payments you authorize will
remain paid. You select the default disposition (e.g. “pay” or “return”) for your positive pay accounts during the service set
up process.
How It Works
1. Each time your company issues checks; you send a check-issue file to the bank. This file contains the check number,
dollar amount, and issue date.
Tip: The check-issue file should be sent to us on the same day that the checks are written.
2. As checks are presented to us for payment, they are verified against your issue file.
3. Each day you will receive a report (by fax or Internet) listing checks presented for payment the previous business day
that do not match the check issue data. This list will be delivered to you by 9:30 a.m. CT (known as the “notification
deadline”).
4. You tell us whether to pay, return, or pay and issue the item. If we do not hear back from you by 12:00 p.m local time
(known as the “decision deadline”) in the state where the ccount is housed, we will follow the default dispositoin
instructions you have on file with us.
Tip: There is a $2.00 per issue charge assessed for every item with a disposition of “issue” (considered an ‘afterthe-fact issue’). If you include after-the-fact issues in your issue file or send them in using the manual void process
on Compass e-Access®, there is no additional charge.
5. If requested, at the end of your statement cycle, the account reconciliation team will perform a full or partial check
reconciliation for your account.
2
Positive Pay Process
Check given
to payee
Check presented
for payment
Issue file sent
to Compass
Validated against
issue file
Paid list
transmitted to
client, if desired
Client issues
check
Exception items
sent to client using
Internet or fax
Disposition
Instructions
Issue
Pay
Return
No Response
Item remains
posted on
the account
and an issue
is created to
match the
paid item.
Item remains
posted on
the account.
Item returned
to bank of
first deposit.
Account
credited for
check amount.
Default
instructions
on file are
implemented.
Item(s) reconciled for cycle-end reports, if client subscribes to
full or partial check account reconciliation.
3
Optional (Additional) Features to Enhance Your Positive Pay Service
Maximum Dollar Notification*
You can specify the maximum dollar amount (e.g. $10,000) for which a check should be paid. In the event a check is
presented for payment that exceeds the maximum dollar amount you specified (e.g. $100,000), the check would be
included in your exception notification with the exception reason listed as “above maximum dollar amount.”
Stale Date Notification*
You can specify that a check should be paid within a specific period of time (e.g. six months from issue date). In the event
a check is presented for payment that exceeds the specified pay period, the check will be included in your exception
notification with the exception reason listed as “stale dated item.”
Alert Notification*
You can select a message by e-mail, pager, phone or fax advising you that your positive pay exception reports are ready
for review.
*Additional monthly fees may apply with this option.
Reverse Positive Pay
Reverse positive pay is a service in which BBVA Compass provides you with a daily list of checks presented for payment
against your company’s account(s). You control which checks clear the accounts by notifying us of which checks to pay
and which ones to return. All checks remain paid unless you specifically instruct us to return an item.
How It Works
1. You receive a list of previous day paid checks from us each business day that you have paid checks.
Tip: If you do not have any checks presented for payment the previous business day, and you subscribe to our
Compass e-Access® service, you will receive a message saying that “no data found which matches your selection.”
2. You perform a daily match of paid checks to your check register (list of issued checks).
Tip: If an item does not match, it may be due to an encoding error made during item processing. Viewing an image of the item will determine if the mismatch is due to an encoding error.
3. You notify BBVA Compass of any items you wish to return. You need to contact us by the decision dead line of 12:00
p.m. local time in the state where the account is housed. If we do not hear from you by the decision deadline, all items
will remain paid.
4. We send your returned checks to the bank of first deposit and credit your account.
4
Reverse Positive Pay Process
Client Issues
Check
Check given
to payee
Check presented
for payment
Paid list sent
to client
Disposition
Instructions
Pay
Return
No Response
Item remains
posted on
the account.
Item returned
to bank of
first deposit.
Account
credited for
check amount.
Default
instructions
on file are
implemented.
Item(s) reconciled for cycle-end reports, if client subscribes to
full or partial check account reconciliation.
5
Check Reconciliation
Partial (Paid) Check Reconciliation
Having BBVA Compass verify your bank statements saves you valuable time and enhances your audit controls. With
partial check reconciliation, we provide a listing—either as a paper report or electronically—of all items paid for the
reconciliation cycle. This list can be sorted by check serial number or by paid date. In addition to including all paid
checks, these reports include outgoing wire transfers, ACH debits, and any miscellaneous debits.
How It Works
1. Your company continues to issue checks, originate wire transfers, etc., as usual.
2. At the end of your statement cycle, the account reconciliation team reviews all the items that have posted to your
account and will make corrections, as necessary. For example, if a check posted to your account without a serial
number, we will adjust your account reconciliation report to reflect the serial number.
3. Within five business days of your statement cutoff date you will receive:
a. Your bank statement.
b. A list of all paid items (available in electronic or paper format).
c. If requested, an electronic file of all paid items which may then be imported into your in-house accounting system.
Full Check Reconciliation
Full check reconciliation takes partial check reconciliation further by having BBVA Compass perform the reconciliation
process for you. With full check reconciliation, we match paid items with the items your company has issued. You will
receive a report that lists the checks paid, checks paid without a matching issue file, and outstanding checks issued – all
sorted by check serial number or paid date. All reports available for partial (paid) check reconciliation are also available
for full reconciliation.
How It Works
1. As your company issues checks, you provide an issue file to BBVA Compass. This file contains the check number,
dollar amount, and issue date.
2. At the end of your statement cycle, the account reconciliation team matches paid items to the issue file and then
produces a report. This report is balanced with your bank statement to ensure there are no discrepancies.
3. Within seven business days of your statement cutoff date, you will receive the following:
a. Your bank statement.
b. A hard copy list of all paid items, items paid without a corresponding issue record, cancelled items, stop payment
items, voided items, and outstanding items.
c. If requested, an electronic file of all items referenced above which may then be imported into your in-house
accounting system.
6
Deposit Reconciliation
Partial Deposit Reconciliation
Companies that have multiple locations making deposits into a single account have the challenge of trying to determine
which location made each deposit. Partial deposit reconciliation eliminates that challenge by establishing a unique
identification number for each location. At the end of your statement cycle, you will receive a report of all deposits
posted to your account – sorted by location number. This report also identifies the deposits made by credit card
merchant number.
How It Works
1. Your company’s deposit slips are encoded with a company-selected unique identification number for each location.
This number can be up to 10 digits long and is part of the deposit slip’s serial number.
2. You distribute deposit slips to each location for their use. The merchant card number that is associated with each
location is supplied to us for inclusion in your reports.
3. Within five business days of your statement cutoff date, you will receive the following:
a. Your bank statement.
b. A report (available in electronic or paper format) of all posted deposits, sorted by location number. If desired, we
can also subtotal each location’s deposits for you.
c. If requested, an electronic file of all items referenced above which may then be imported into your in-house
accounting system.
Additional Services and Features
High Order Check Prefixing
Companies that have multiple locations writing checks off a single account have the unique challenge of trying to
determine which location wrote each check. With high-order prefixing, your company establishes a unique identification
number for each location, which is encoded on the check stock as part of the serial number. At the end of your
statement cycle, your reports will be sorted by location number. This add-on feature can be used with our partial check
reconciliation or full check reconciliation services.
Custom Reports
If you find that the standard reports do not meet your needs, we can create custom reports for you. These custom
reports may have different sort patterns (e.g. sort by amount) or criteria (e.g. additional data field). Custom output options
include:
• Data selection criteria
• Data sequencing
• Media and number of copies
• Frequency
• Totaling
7
User Tool Kit
Now that you’re ready to begin using your new services, we want to help get you up and running as soon as possible.
This section details some important information concerning the processing of your selected service(s).
Contact Information
File Creation Support
Compass e-Transmit®
1-800-239-2265 extension 1526
Compass e-Access® (CSV and fixed format only)
1-866-488-1858
SecurePay (through AP Technology)
1-800-652-2877 or 760-602-5423
Tip: SecurePay is positive pay file creation software offered by our partner, AP Technology. They have extensive experience with supporting a variety of accounting packages, such as QuickBooks, PeachTree, etc. If you are unsure
of how to create one of our standard reports or the CSV and/or fixed formats, we recommend that you contact AP
Technology for help in creating your positive pay issue file.
Testing and Other Technical Support
Positive Pay
1-800-239-2265 extension 1880
1-800-239-2265 extension 1220
Fax: 205-297-1288
205-297-7178
205-297-5070
Client Services
Business Relationship Services Voice
Fax
E-mail
Alabama and Florida
1-800-607-4444
205-297-6140
[email protected]
Arizona, California, Colorado,
New Mexico, and El Paso, TX
1-800-236-2059
1-866-710-5186
[email protected]
South Texas
1-800-570-2791
1-713-993-8551
[email protected]
North Texas
1-866-876-4922
1-877-527-9736
[email protected]
Tip: Changes to account processing instructions or your contact information must be sent to BBVA Compass in
writing, with signatures of authorized individuals on the account. The instructions can be sent either by fax or mail
(e-mail is not accepted at this time).
Fax: 205-297-1288 or 205-297-7178 or 205-297-5070
Mailing address: Attn: ARP Dept, 701 32nd Street South, Birmingham, Alabama 35233
8
Deadlines
Transmission of Issue Files
Files must be transmitted by 9:00 p.m. CT Monday through Friday. Any files received after the deadline will be processed
the next business day. Files sent on bank holidays will be processed the next business day.
Tip: Sending your files in on time helps you reduce processing time and monthly service fees.
Sending Manual Issues and Voids
Compass e-Access: 9:00 p.m. CT Monday through Friday. Any manual issues or voids created after the deadline will be
processed the next business day. Manual issues and voids sent on bank holidays will be processed the next business day.
Fax: 3:00 p.m. CT Monday through Friday. Any faxes received after the deadline will be processed the next business day.
Faxes sent on bank holidays will be processed the next business day.
Tip: There is a per item fee for sending in manual issues and voids by fax because it requires re-keying by bank
personnel. There is NO per item fee for sending in manual issues and voids using Compass e-Access.
Exception / Suspect and Paid List Notifications (Notification Deadline)
Compass e-Access: For positive pay clients, exception/suspect notifications will be available on the system by 9:30 a.m.
CT Monday through Friday. For reverse positive pay clients, paid list notifications will be available by 7:00 a.m. CT Monday
through Friday.
Fax: For positive pay clients, exception/suspect notifications will be sent at 9:30 a.m. CT Monday through Friday. For
reverse positive pay clients, paid list notifications will be sent at 8:30 a.m. CT Monday through Friday.
Pay or Return Decisions (Disposition Deadline)
Compass e-Access: 12:00 p.m. local time [where the account is housed] Monday through Friday. Accounts based in
Florida have until 1:00 p.m. ET to make pay or return decisions. If we do not receive your pay or return instructions by the
disposition deadline, we will follow the default instructions you have on file with us.
Fax: 12:00 p.m. CT Monday through Friday. If we do not receive your pay or return instructions by the disposition
deadline, we will follow the default instructions you have on file with us.
9
Holiday Schedule
Please keep holidays in mind when transmitting your positive pay and full account reconciliation issue files to BBVA
Compass for processing. While we can receive your issue file on a bank holiday, your issue file will not be processed until
the next business day.
The table below lists the observed Federal Reserve holidays, and indicates whether or not we are open for business.
FEDERAL RESERVE HOLIDAY
BBVA COMPASS OPEN?
New Year’s Day
No
Martin Luther King Jr. Day
No
Presidents’ Day
No
Memorial Day
No
Independence Day
No
Labor Day
No
Columbus Day
No
Veterans’ Day
No
Thanksgiving Day
No
Christmas Day
No
BBVA Compass will be OPEN the day before and the day after the observed Federal Reserve holiday, unless the day falls
on a weekend day.
Positive Pay users:
If your company will be closed on any days other than the holidays listed above, such as the day after Thanksgiving
or Christmas Eve, it is extremely important that you notify our positive pay team (refer to contact information on page
9). We need to know about any changes in your processing instructions or contact information for your positive pay
exception items and daily notification.
Tip: (Positive pay and reverse positive pay users only) Vacation schedules should also be taken into account
so that we will have signatures and contact information on file for any alternates and/or designates who will be
responsible for providing us with a “pay” or “return” decision on exception and paid list items.
Frequently Asked Questions
Pay/Return Decisions
Will I continue to receive a daily fax of my paid or exception items?
No. Once you convert to positive pay or reverse positive pay (a.k.a. check return) on Compass e-Access®, your manual
fax will be discontinued.
What is the latest time I can make my pay or return decision?
Disposition instructions for both positive pay and reverse positive pay services must be entered prior to 12:00 p.m. local
time where the account is housed. Clients in Florida have until 1:00 p.m. ET to make a pay or return decision.
10
When will my exception list be available on Compass e-Access?
Positive pay exception items will be available at 9:30 a.m. CT. It is up to you to go in and review your items every day
before the designated cutoff time (12:00 p.m. local time). In the event that we are late in providing the daily paid or
exception list, banner messages will be broadcast on Compass e-Access.
May I decision all of my items at once?
There are “Pay All” and “Return All” buttons available at the top of each page that will select all of the exception items on
that page. If there are multiple pages of exceptions, you need to submit instructions on the first page before going to the
next page.
Why is it that some items do not have the pay or return instructions that I submitted?
Pay or return instructions must be submitted on the first page before going to the next page. If you did not select
the submit button before moving to the next page of exception items, your instructions will not be saved. If there are
multiple pages of exceptions, you need to submit instructions on the first page before going to the next page.
May I make pay or return decisions on some items and go back in later to finish the outstanding items?
Yes, you can disposition as many or as few items as you want each time you review the items. Any items that you fail to
provide a pay or return disposition on by the cutoff time will be subject to your default disposition instructions on file.
What if someone enters a pay/return decision incorrectly?
Disposition instructions may be reviewed and revised as necessary before the 12:00 p.m. local time cutoff.
What happens if I do not make a pay/return decision by the cutoff time?
Positive pay – any items that you do not provide a pay or return disposition on by the cutoff time will be subject to your
default disposition instructions on file.
Reverse positive pay (check return) – all items remain paid unless you instruct us to return an item.
How can I see an image of the paid or exception item?
If you subscribe to image services for positive pay or reverse positive pay (check return), you will see an image icon next
to the paid or exception item. If you do not subscribe to image services, you will only see the paid data (no image icon
available).
May I view paid or exception items from previous days?
Yes, but you cannot make pay or return decisions. Disposition history will be maintained for 90 days on
Compass e-Access®.
Why do I get an error message when I hit the “back” button to look at the previous page of exceptions?
The application requires that you use the “next” and “previous” buttons to navigate through your positive pay exception
items.
Why do I need to provide a return reason when I mark something as “return”?
If you do not provide us with a return reason when dispositioning an item, we have to return it to the bank of first deposit
as “refer to maker.” Because this is a generic return reason, many banks will choose to redeposit the item thinking that it
may be due to insufficient funds or other non-fraudulent reasons. Marking the item as fraudulent, duplicate paid, or stop
payment on file will alert us to any fraud that may have been committed on your account and prevents the check from
being re-deposited over and over again. It also saves you the headache of having to review the same item multiple times.
11
If I have a question regarding a paid or exception item, who do I call?
Contact the account reconciliation team at (205) 297-1220.
Issue File
What are the formats available to me to send my issue file?
If you send your issue file through Compass e-Access, you can send it in CSV (comma-separated values or commadelimited) or fixed text format. Refer to your Compass e-Access user guide for more details.
If you created your issue file using the Secure Pay software, you will need to send it using Compass e-Transmit®.
If you create your issue file using other software and it is in the BBVA Compass input file standard or custom format, you
will need to continue sending it through Compass e-Transmit.
May I submit in my main issue file through Compass e-Transmit® and create manual issues/voids in Compass
e-Access®?
Yes, we strongly encourage you to do this whenever possible as we charge a $2 per issue fee for any issues that are
faxed to us that we need to manually key into the system.
May I use Compass e-Access instead of Compass e-Transmit to send my issue file?
It depends. If you are willing to change your file format to CSV or fixed text, then yes, you can send it using Compass
e-Access instead. If you want to keep your current file format, you will need to continue to send it using Compass
e-Transmit.
I did everything correctly when importing an issue file, yet the import process failed. Why?
If you sent an issue file in the fixed record/text format, do not select the “Strip Leading Zeroes” option because the
account number field requires 10 characters and your account number may really start with a zero. If you sent an issue
file in the CSV format, ensure that you have the fields formatted to include leading zeroes and no decimal points. If you
still have a problem importing your issue file, please contact our Compass e-Access support team.
Why does the status of the file I imported show as “pending” on Compass e-Access?
On the day an issue file is uploaded into the positive pay module on Compass e-Access, it will show the items as
“pending” in the status column. The status will change to “processed” the next business day.
How can I get confirmation that my issue file was received?
After uploading the file, go into the Import Review section and select the file name and date. If the upload was successful,
it will go to a screen that shows the number of items uploaded in the file.
How often should I submit an issue file?
You should send in an issue file the same day checks are written.
What happens if I send a duplicate file?
Compass e-Access will accept the duplicate file but it will reject when it tries to post to the account reconciliation system
during the nightly batch processing.
Do I need to call each time I transmit a file?
No.
12
What is the latest time I can submit an issue file through Compass e-Access?
Files must be imported no later than 9:00 p.m. CT, Monday through Friday, excluding bank holidays. It is highly
recommended that you upload your issue file at least 10 minutes before the cutoff time to avoid missing the cutoff due
to connectivity delays.
Can I back-out a file if I uploaded the wrong file?
No. Please contact the account reconciliation team at (205) 297-1220 so they can back the file out of the account
reconciliation system.
Manual Issues and Voids
Can I send in a void instead of a stop payment?
Yes. However, voids drop out after the current account reconciliation cycle, so if a check is presented for payment after
the current cycle, the item will be reported to you as a paid-no-issue. It is highly recommended that you place stops on
checks that are no longer in your possession.
What is the difference between creating a manual issue on Compass e-Access® and faxing in my manual issue to my
account reconciler (or ARP department)?
There will be a $2 per issue fee for items that are faxed in to your account reconciler or ARP department. There is no
additional charge for submitting manual issues using Compass e-Access.
General Positive Pay
What is a PNI?
PNI is an acronym for paid-no-issue and it refers to any item presented for payment that does not have corresponding
check issue information on file at the bank.
Is it possible to flag items presented for payment that are above a specified dollar amount as exception items?
Yes, we offer a maximum dollar notification service that allows you to specify the dollar amounts for which you would
like to be notified if something is presented for payment, even if it matches your issue file. Contact your treasury
management sales officer for more details.
How do I prevent items that are more than x days old (from date of issue) from paying against my account?
We offer a stale date notification service that allows you to specify the number of days that an item should be
considered “stale dated.” For example, you may choose to be notified of all checks presented for payment that are over
90 days from the date they were issued to the payee. We can notify you of this even if the information matches your
issue file. Contact your treasury management sales officer for more details.
Reverse Positive Pay
Where do I find my daily list of reverse positive pay items?
Go to the tab titled “Check Return” in the positive pay module of Compass e-Access®.
Why do I not see the return check boxes on my check return services report?
Please verify the date range on your report. You may only make return decisions on items that posted the previous
business day and prior to the disposition cutoff. All other times, the return check boxes will not be displayed.
13
I can see paid checks in my information report for yesterday’s posting that are not included in my reverse positive
pay (or check return) report. Why are some items excluded? Can I still return them even if they are not on this
screen?
Checks cashed at our branches are excluded from the reverse positive pay reporting. These items should not be
returned.
Reconciliation Reports
What would cause my account reconciliation report to be delayed?
If we have trouble with your issue file (for example, because we never received it from you, it is unreadable, or it is a
duplicate of another file you sent to us), your reconciliation report may be delayed.
May I get an electronic copy of my month/cycle-end reports?
Yes. There are two options:
a. Compass e-Access: view or print a copy of your full or partial reconciliation reports using the electronic report
delivery (ERD) module. There are 2 reports: “ARP Summary” which is your cover sheet providing you with activity
totals; and “ARP Detail” which gives you the detailed reconciliation reports such as the consolidated reconciliation,
recap of posted items, etc.
b. Compass e-Transmit®: download a file listing all of your paid and/or outstanding items for the reporting cycle. This
can be uploaded to your accounting software.
I am having trouble understanding my reconciliation report. Who do I call?
Contact the account reconciliation team at (205) 297-1220.
Sample Reports
The next few pages detail the various reports that accompany BBVA Compass’ account reconciliation and positive
payment services. If you would like to add any of the reports listed here, please contact your treasury management
representative.
Report Guide
The following table lists the various account reconciliation services and the types of reports available. “S” indicates a
standard report; “O” indicates an optional report. Optional reports are available at no additional charge.
Report Name
Full Check
Partial Check
Range Check
Consolidated
S
S
Unpaid Only
O
O
Paid Only
O
S
O
Misc. Debits
S
S
S
Misc. Credits
S
S
S
Recap of Posted Items
S
S
S
Cover Sheet
S
S
S
Partial Deposit
Consolidated Deposit
Detail
S
Recap
S
14
Report Definitions & Samples
Listed below is a definition of the reports available to account reconciliation users.
Confirmation Report
The confirmation report is a text file that is available for you to retrieve moments after your file has been successfully
transmitted using Compass e-Transmit®. This report is your confirmation that the file has been successfully transmitted
and contains the total number and dollar amount of the items included in the file. Please use this report to verify that you
have transmitted the correct file.
15
Consolidated Deposit Reconciliation Report
This report lists all matched and unmatched deposits that have posted during the statement cycle.
Consolidated Reconciliation Report
This report contains all checks issued, items cancelled, and checks posted during the statement period.
16
Deposit Reconciliation Detail Report
The detail of each deposit is listed and sorted by location code. If requested, this report can also be subtotaled by
location number.
Deposit Reconciliation Recap Report
The total number and amount of deposits are listed for each day and are sorted by location number. If requested, this
report can also be sub-totaled by location number.
17
Full Check Reconciliation Balance Sheet
This report is used to balance your posted items to your bank statement. All account debits, credits, and adjustments are
provided.
18
Miscellaneous Credits Report
This report provides a listing of all non-deposit credits posted to your account during the statement period.
Miscellaneous Debits Report
This report provides a listing of all non-check debits posted to your account during the statement period..
19
Paid Only Reconciliation Report
This report lists all checks that have posted during the statement period along with any paid-no-issue items. Upon
request, partial reconciliation and high-order prefixing customers may receive a modified version of this report, which
lists all posted items.
Partial Reconciliation Balance Sheet
This report is used to make any adjustments to your bank statement. All account debits, credits, and adjustments are
provided.
20
Recap of Posted Items Reconciliation Report
This report lists the total number and dollar amount of transactions for the reconciliation period by date. It provides
a clear picture of the number of checks/deposits and the dollar value of those checks/deposits that posted to your
account on each business day of the statement period.
Unpaid Only Reconciliation Report
This report lists all outstanding and cancelled items for the reconciliation period.
21
Glossary
ABA/Routing Number
The number on a check or draft that identifies the bank on which the item is drawn. The ABA/Routing number facilitates
the collection of funds through the check clearing system. The ABA/Routing number appears in the MICR line at the
bottom of the check or draft.
Account Number/DDA
A unique number assigned when an entity/corporation opens a demand deposit account (DDA) at a financial institution.
Used to identify the entity’s bank information. BBVA Compass uses this number to identify the bank account to which
disbursement information is reconciled.
Account Reconciliation Product/Program (ARP)
Services providing assistance in reconciling bank statements to company records. May include listing and/or tapes of
paid checks, listing of outstanding checks, deposit reporting, and other specialized reports.
“After-the-Fact Issue”
Occurs when a client fails to send in an issue corresponding with a check presented for payment and is reported to the
customer as a paid-no-issue.
BAI (Bank Administration Institute) Format
A structured computer-processable data format for the input of issue data to mainframe systems developed by the Bank
Administration Institute (BAI) and accepted by most financial institutions.
Bank of First Deposit
Bank where a check is initially presented for payment by the payee.
Bulk Storage
Mass storage of all the checks within a particular paid date in random order.
Check Image
Advanced technology which makes it possible to optically scan and capture a digitized image of the check. Grayscale
images contain the details on the front of the check, such as the background and any other peripheral data. Black-andwhite images generally contain just the fields on the check containing text and do not show background detail.
Check Reconciliation
Process by which checks presented for payment are balanced against a company’s check register (list of issued checks)
within a given statement cycle (usually monthly).
Check Reject
A check that is rejected by a financial institution’s sorter machine due to factors such as poor quality paper or ink and
MICR line misreads.
Check Retention
The bank retains paid checks and check or draft image records. Copies of checks can be obtained when needed.
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Check Serial Number
The unique number used to identify a check or draft presented to the bank for payment. The serial number is usually
located in the upper right hand corner of a check or draft.
Check Truncation
The process by which essential information contained on a conventional paper check is captured electronically and the
electronic information, not the paper check, is sent through the clearing system.
Comparative Negligence (UCC, Article 3-406)
A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the
making of a forged signature on an instrument is precluded from asserting the alteration or the forgery against a person
who, in good faith, pays the instrument or takes it for value or for collection. If the person fails to exercise ordinary care
and that failure substantially contributes to loss, the loss is allocated between the person precluded and the person
asserting the preclusion according to the extent to which the failure of each to exercise ordinary care contributed to the
loss.
Compass e-Transmit®
Internet-based treasury management system that enables clients to perform a variety of treasury-related activities, such
as wires, ACH, balance reporting, positive pay exception reporting, stop payments, etc.
Credit
A transaction reflecting an increase of funds in an account.
Custom Report
Report generated out the account reconciliation system that is specific to a particular company’s needs and
requirements. It usually has special sort patterns or additional information fields.
Debit
A transaction reflecting a decrease of funds in an account.
Decision Deadline
The hour by which you, the client, must inform BBVA Compass whether to return or pay items.
Deposit Detail
A report that lists the detailed information on each item presented for payment. Data from the MICR line or other
information may be included in the report.
Deposit Reconciliation
Provides the complete reconciliation function for accounts that deposit at multiple sites into a single account. The
deposit tickets are MICR-encoded with location identification and a sequential serial number for maximum control of
account activity.
Duplicate Check
A check that is presented for payment against an account more than one time. Criteria for defining what constitutes a
duplicate check include identical serial/check numbers, amounts, and issue dates.
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Exception Items
Checks or drafts that do not match a client’s issue file information because of discrepancies in any of the following fields:
check/serial number, amount, issue date, and account number. (For example, ABCDE client issues check number 123456
on August 31, 2003, in the amount of US $1,000.00 and transmitted the issue information to BBVA Compass. On January
3, 2004, check number 123456 in the amount of $10,000.00 is presented for payment. When this is matched against
ABCDE client’s issue file, it shows that there is a discrepancy in the check amount. The bank then contacts client ABCDE
to verify the authenticity of the check.)
Exception Notification
Daily written notification to clients listing their exception items from the prior day’s check or draft presentments.
Notification may be sent by fax, transmission, or internet connection. Clients must provide the bank with a pay or return
decision by the decision deadline.
Full Reconciliation
Provides the client with a consolidated list of paid and outstanding checks, as well as other information reports. The
client provides BBVA Compass with issue information listing the check serial number, check amount, and issue date for
each check issued, as well the total dollar amount and total number of checks. We match paid check data against the
client issue file.
Information Deadline
The hour by which all items and issue data to be presented for payment must be delivered to us.
Manual Issues
Check issue information for a client that is not included in the automated and/or main transmission that the client sends
to the bank. Manual issues are usually transmitted to the bank using Compass e-Access® or facsimile transmission.
Manual Voids
Voided check information for a client that is not included in the automated and/or main transmission that the client
sends to the bank. Manual voids are usually transmitted to the bank using Compass e-Access or facsimile transmission.
Maximum Dollar
An optional feature of the account reconciliation program (ARP) that allows clients to specify the maximum dollar
amount for which a check may be cashed (for example, “Do not pay checks over $10,000.00”). Checks presented over
the maximum dollar amount will be rejected from the ARP system and the client will be contacted for a pay or return
decision. In the event that the bank cannot contact the client before the decision deadline, the default instructions filed
upon implementation will be followed.
MICR-Encoding (Magnetic Ink Character Recognition)
Machine and human recognizable characters on the bottom of a check. The ink is treated so that magnetically sensitive
equipment can “read” the information, and thus expedite the clearing process. A fully encoded MICR line may contain
the check serial number, payor bank transit routing number, account number, and check amount.
MICR Specifications
A form detailing a bank’s specifications and tolerance of MICR encoding. A company’s check printer will need the MICR
specifications to ensure that their encoding meets the bank’s requirements.
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Ordinary Care (UCC, Article 3-103)
Ordinary care in the case of a person engaged in business means observance of reasonable commercial standards,
prevailing in the area in which the person is located, with respect to the business in which the person is engaged. In
the case of a bank that takes an instrument for processing for collection or payment by automated means, reasonable
commercial standards do not require the bank to examine the instrument if the failure to examine does not violate the
bank’s prescribed procedures and the bank’s procedures do not vary unreasonably from general banking usage not
disapproved by this Article or Article 4.
Off-Us Checks
Deposited checks drawn on banks other than the service bank (BBVA Compass) and its associated branches/affiliates.
On-Us Checks
Deposited checks drawn on the service bank (BBVA Compass) and its associated branches/affiliates.
Over-the-Counter/Teller Line Cashing
Checks that are presented at the bank’s branch office window/counter for immediate payment to the payee.
Paid Date
The date a check or draft is presented for payment at a bank.
Paid (Partial) Reconciliation
Provides the client with listing of checks paid in serial number order or paid date order and requires no input by client.
The reconciliation involves balancing the grand total of the paid list against the bank statement.
Payee
An entity or person named on a check as the recipient of the funds. When the payee endorses a check, (s)he warrants
that (s)he is the rightful beneficiary of the funds, that the check has not been altered, and that (s)he is not aware of any
reason why the check should not be honored.
Payor
The party who writes or draws a check. Also known as the issuer.
Positive Pay
Positive pay is a customer authorization allowing the bank to pay specific checks. Upon issuing checks, the bank
customer provides the bank with the issued check information. If an attempt is made to cash a check, the bank will not
pay if the check information does not match the information provided by the customer. Positive pay has proven to be
the most effective weapon against check fraud to date, preventing multiple major incidences of fraud against a single
bank account.
Positive Pay No Issue (PNI)
Per item charge of items presented for payment to BBVA Compass that do not have a corresponding issue on the
positive pay issue file.
Positive Pay Notification
See exception notification.
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Posted Items
Debits (including checks and drafts) or credits applied against a client’s bank account.
Return Item
A check that is rejected by the institution on which it is drawn.
Routing Number (ABA Routing Number)
The number on a check or draft that identifies the bank on which the item is drawn. The ABA/routing number facilitates
the collection of funds through the check clearing system. The ABA/routing number appears in the MICR line at the
bottom of the check or draft.
SecurePay
Software offered by AP Technology that creates issue files from a variety of software accounting packages. Most
accounting applications are able to generate some kind of report containing issued check data (check register, check
history, etc.). This is the file that SecurePay would use to capture the data that will be sent to the bank. The main
advantage of SecurePay is that it does not require any custom programming. Most of the customers who install the
software themselves are controllers and accountants who do not have advanced computer skills, but nevertheless have
no problem getting SecurePay up and running.
Stale-Dated Check
Generally a check dated six months or more prior to presentment for payment.
Suspect Items
Items rejected by an automated exception detection agent due to a mismatch between the standard parameters (for
example, issue file, set thresholds, or check stock) and the presented item.
Transmission – Inbound/Input
Files containing a client’s issue data (check serial number, check amount, issue date, and payee) sent to BBVA Compass
from the client using PC-to-mainframe or mainframe-to-mainframe transmission (on a daily basis for positive pay
accounts, on a monthly/weekly basis for non-positive pay accounts).
Transmission – Outbound/Output
Daily/weekly/monthly account reconciliation reports (without check images) delivered to the client using scheduled
mainframe transmissions.
Uniform Commercial Code (UCC)
A uniform set of laws governing commercial transactions enacted separately in each state. It defines the rights and
duties of the parties in a commercial transaction and provides a statutory definition of commonly used business
practices.
Void
A check that is declared no longer valid and thus cancelled. Checks should only be “voided” if they are still in the
possession of the issuer. Checks that have been distributed should have stop payments placed on them to prevent the
item from being cashed upon presentment.
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TM-02-1001C rev. 06/16
BBVA Compass is a trade name of Compass Bank, a member
of the BBVA Group. Compass Bank, Member FDIC.