How To: Request an Outgoing Wire Transfer or ACH Payment

Who does this?  Staff

When?  When funds can be electronically transferred. ACH payments are preferred over wire transfer.

How?  Making request through Expense Requests or iProcurement and providing required information to Disbursements

Important Notes before you begin:

ACH (Automated Clearing House) is a system that provides electronic funds transfer (EFT) between banks. It is used for all kinds of fund transfer transactions, including direct deposit of paychecks and business-to-business payments. ACH operations are done in a batch mode, and normally take 24 to 72 hours for transfer of funds. ACH payments are efficient and cost effective and are the preferred payment method whenever possible. Typically, a supplier or payee will specify when they wish to be paid by ACH. Also, most governmental agencies pay and are paid by ACH when transactions involve large institutions like Stanford.

Wire transfers should only be used when:

• Wire transfer is the only acceptable method of payment
  • Items that cannot be paid by means other than wire transfer include payments to countries where mail delivery is unreliable or banking restrictions pose problems. Examples include:
    • Russia
    • China
    • most African countries
• Funds must be transferred immediately (funds typically arrive same day if requested before noon; for ACH payments, funds typically arrive next day)
• Payment to be made is greater than $1,000.00
  • Payments for less than $1,000 to other countries (such as European countries) should be made by check or foreign draft whenever possible.

Outgoing wires may be requested as a "Special Payment Handling Option" in Expense Requests (expense report / reimbursements) or specified on the invoice.

 

Request an Outgoing Wire Transfer or ACH Payment (3 steps)

When indicating payment method in Expense Requests or iProcurement (standard non-catalog requisition):

1. Specify Wire Transfer or ACH method in Special Payment Handling Option step when requesting an expense report / reimbursement. See Expense Requests How To page.


~ OR ~

1. Specify Wire Transfer or ACH method as notation when creating Standard Non-Catalog purchase requisition in iProcurement.

Note:  Transfers requested via Expense Requests will be reviewed by Travel and Reimbursement Department; transfers requested via iProcurement will be reviewed by Accounts Payable. Cash Management cannot process the transfer until these reviews and approvals are complete.

Instruct the payee to:

1. Provide you with electronic fund transfer instructions on the payee's letterhead.


~ OR ~

1. Provide you with electronic fund transfer instructions in an email originating from the payee.

Note – Electronic fund transfer instructions must include:

• For domestic transfers:
  • Name of the Bank
  • Address of the Bank
  • ABA Number
  • Name of the Account Holder
  • Account Number
• For foreign transfers:
  • Name of the Bank
  • Address of the Bank
  • BIC Code
  • Account Number (IBAN for transfers to the United Kingdom or if the payment is in Euros, CLAB number if the transfer is to Mexico)
  • Name of the Account Holder

Submit the instructions to Disbursements:

For expense reports and Non-PO payment requests:

1. Request "Special Payment Handling" on the expense report / reimbursement or Non-PO payment request. The Supplier Enablement team will contact the supplier / payee to collect the wire or ACH information securely via the Supplier / Payee Request Portal.

Note:  Do not attach or fax wire or ACH payment information with the transaction.

For Payments against invoices:

1. Include the instructions in the notations section of Standard Purchase Requisition and fax or email the instructions to Accounts Payable, referencing the Purchase Requisition number.

IMPORTANT NOTE:  The instructions MUST reference the appropriate Expense Requests transaction number or Purchase Requisition Number to expedite any research or searches that may be required by Cash Management or the Bank.

 

What Happens Next?

• Once approved, Disbursements will forward electronic transfer request and instructions to Cash Management for transfer of funds.

Questions?

• Contact the Financial Support Center (3-2772).