Patent ID: 8249963

Claim:
A computer-implemented method executed by an automated system for providing automated clearing house (ACH) payroll vender services by a payroll services provider that limit financial risk to a payroll vendor, the method comprising: receiving a plurality of transaction files from a payroll vendor for a plurality of clients, each of the plurality of transaction files including a set of automated clearing house (ACH) transactions and client master file (CMF) data defining payroll data for a given client, the plurality of transaction files received through a web-based interface of the automated system; processing each transaction file by a scheduling/receiving/balancing (SRB) system in the automated system to check for errors and to verify against prior balance data; generating an exception report identifying errors in the plurality of transaction files, the exception report provided to the payroll vendor through the web-based interface; and executing each ACH transaction in the transaction file by a risk management system of the automated system, such that an ACH transaction resulting in a non-sufficient fund (NSF) are initially a responsibility of the payroll service provider, where the payroll services provider manages NSF risk allotment for each ACH transaction by application of any one of a plurality of payroll vendor specific risk management schemes, the plurality of payroll vendor specific risk management schemes including limited advanced processing of the transactions, client preprocessed funds transfer, client bank funds guarantee, direct debit executions, vendor guarantee, reserve account usage, full advanced processing of the ACH transactions, federal reserve bank (FRB) notification monitoring, ACH transaction reversal, account offset, officer guarantee or NSF insurance.