egach
Automated Clearing House (EG-ACH)
 
ACH stands for Automated Clearing House, the ACH Network is a highly reliable and efficient nationwide electronic funds transfer system governed by the Egyptian Banks Company (EBC) under the supervision of the Central Bank of Egypt (CBE).

ACH is an electronic fund transfer system that enables inter-bank clearing of transactions among participating financial institutions. In others words ACH is a system that enables exchange of electronic transactions in batches of Direct Debit and Direct Credit payment Instructions to be exchanged between participants.

The ACH infrastructure in Egypt is called the Egyptian Automated Clearing House (EG-ACH).

The EG-ACH could be utilized basically to transfer funds between customer’s bank account, whatever this transfer is a Direct Credit or Direct Debit, the low transaction cost could be considered as the main advantage of accepting EG-ACH transactions.
 

EG-ACH Characteristics

  • High volume, Low value Transactions
  • Non-urgent Payments
  • Batch processing
  • Multi-lateral settlement
  • Session/Window concept
  • Direct Credit and Direct Debit
  • Cancellation or rejection prior to settlement at RTGS

EG-ACH Participants

  • The Originator: is the Customer who initiates Credit/Debit transactions through the originator bank
  • The Originator Bank: is the Participant that receives the Credit/Debit payment instruction from the Originator
  • The EG-ACH Operator: Provider of the inter-bank clearing of the payment instruction
  • The Receiving Bank: is the Participant that receives the Credit/Debit payment instruction from the Originator Bank and Credit/Debit the account of the Receiver
  • The Receiver: is the Customer who receive Credit/Debit transactions which was originally initiated by the Originator
  • Technical Agent: Delivers Direct Debit/Direct Credit batches to EG-ACH and handle their responses on behalf of originator banks

EG-ACH Transaction Workflow

In EG-ACH terminology, Originator and Receiver refer to the participants that initiate and receive the EG-ACH entries rather than the funds. Unlike a cheque, which is always a debit instrument, an EG-ACH entry may either be a Direct Credit or Direct Debit entry. By examining what happens to the Receiver's bank account, one can distinguish the difference between a Direct Credit and Direct Debit transaction. If the Receiver's account is debited, then the entry is an EG-ACH Direct Debit. If the Receiver's account is credited, then the entry is an EG-ACH Direct Credit. Conversely, the offset to an EG-ACH Direct Debit is a credit to the Originator's account and the offset to an EG-ACH Direct Credit is a debit of the Originator's account.

EG-ACH Services:

  1. Direct Credit
  2. Direct Debit
  3. CorPay (Corporate Bulk Payment)

Direct Credit

Direct credit service is a quick, easy and convenient method of making deposits into a beneficiary's account (e.g. pensions, dividend payments, inward remittance credit, etc…) through your bank in electronic manner. For more details please refer to Direct Credit Page

Direct Debit

Direct Debit service is a quick, easy and convenient method of collecting regular payments (e.g. bills, installments, subscriptions, etc…) from your bank account, in order to enable Direct Debit you have to authorize your bank to debit your account upon biller request, this authorization is called Mandate. For more details please refer to Direct Debit Page

CorPay

CorPay is a solution specifically designed to address the needs of high volume payments customers (Corporates). This solution allows a bank to target companies in order to initiate and submit transactions to the bank in bulk using the EG-ACH infrastructure. CorPay is an ideal solution for banks allowing them to avail new payment channel to their corporate customers. For more details please refer to CorPay Page

References