Northern Virginia Management, Inc. Associates has greatly reduced the delinquency and aggravating paperwork associated with collecting assessments through its Automated Clearing House (ACH). ACH is an electronic transfer of funds by the Federal Reserve Banking Commission from one bank account to another. Funds are handled like checks, but only banks can initiate ACH electronic transfers.
To implement ACH, Association members must provide the Association with written authorization to transfer funds from their bank account to the Association’s operating account. This is done by providing a standard agreement for Association members to sign that includes the amount to be transferred, frequency and dates, and pertinent information about members’ bank accounts. For the first ACH electronic transfer, the banks do a test run. Funds are then transferred automatically after Northern Virginia Management, Inc. supplies the Association’s bank with an up-to-date database from members’ standard agreements via modem.
Northern Virginia Management, Inc. is confident that members of Sample Homeowners Association will like ACH electronic transfers. The Association will use fewer fee coupons, deposit books, stationary, and stamps. Delinquent letters will decline in number and administrative costs will go down as well. Association members will enjoy paying by ACH because it saves time, energy, and brings them peace of mind. They no longer have to worry about assessment dates and the postal system. All they need to do is record payments in their check registers.