EFT and Online Payments                   ZZall 0072-02

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                           TO:  Interested Ministries                                                                                                        FROM: Jim Bramer, Retired Auditor:CPA
                                                                                                                                                                                  FILE:  0072-02/all

                           RE:  EFT and Online Payments                                                                                             Originated:  January 2001

        Below is a transcript of another hypothetical Online conversation, or THRD WRITING, between Jim@bcidot.org   and members of a M)inistry F)inance Team - MFTeam: the MFTeam members are PAT .. the Ministry Executive, LEE .. the Volunteer Board Treasurer, and FRAN .. the Ministry Computer Bookkeeper. 

FR: LEE

    You have mentioned EFT and Online Payments.  Please provide more information about such things, Jim.


FR:   Jim@bcidot.org  

    Right, we are convinced that you should be using the following tools when appropriate.  

  •    EFT stands for Electronic Funds Transfers  that happens when you make arrangements to have the bank write a check equivalent (kinda like the existing debit cards of today) to a approved payee.  Usually this is done automatically each month so that the payee does not have to remember, etc. Access 0907 for more on the topic of the Ministry being in charge of receiving monthly payments, etc, as mentioned below..
  •    The means for ONLINE PAYMENTS are built in to such software as QBooks.  Arrangements are made with the agent (like Intuit) so that the Ministry can, within the software, write a check equivalent and your agent will then produce the check and snail mail it to the payee. This means that the Ministry does not have to write a paper check and process on via a stamped envelope. 

FR: LEE

        I think I get the idea.  Please share the approximate monthly cost and examples of potential payees involved.  
    Oh also, does any of this apply when an employee has their net pay automatically deposited to their checking account?

FR: JIM

        Please go to  4036  for possible use in pursuit of someone's Righteous Personal Finance, but in regard to use at a Ministry .....

  •   Online Payments costs some $10.00 a month; EFT fees vary with each bank, so you would need to check that out.
  •   Online Payments and EFT apply largely to repetitive payees; like utilities, phone, at a church - missionary commitments, plastic - or credit card - monthly settlements, etc.
  •   Direct Deposit, as indicated in the links below, is the term we use when an employee has their net pay go directly to their bank. 0035 and  ;0607.  

FR: LEE

    Hmmmmm..... what about at the other end of the spectrum.  What about a Ministries using Electronic resources for money coming in?  

FR: JIM

        Exactly.  Am glad you picked up on this.  As you will notice below, we have included a link that speaks to this subject.  You will note that 0907 emphasizes the value of the Ministry taking the financial transaction initiative, etc.

FR: LEE

      OK .... thanks, Jim.  Will look into these matters.

    Applicable references to "EFT" and/or "Online Payments" on this web site include the following:

    RE: E-Ministry 0035; 5016; If Jim B were voluntary treasurer: 0089; Buying Cycle: 7003; QB and Electronics: 5005; Bank Sweep setting: 0006; Ministry Receipts initiative: 0907;  School tuition receipts, etc: 7005; 7016; 7888

     --MINISTRY FINANCE "LINGO"  INCLUDE--, included within our Glossary  and appearing within our web site , include: 

E-Ministry, etc  = Electronic financial transactions at a Ministry, etc.
EFT = Electronic Funds Transfer
MFT or MFTeam = Ministry Finance Team
Online Payments = payments paid electronically
QB = QuickBooks
QBOE = QuickBooks Online Edition for the Web
Schar = School Accounts Receivable

   . The bulk of this Publication originated in January 2001 and was  UPTD: May 03, 2008    

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        (1) An Onliner Document, or  WRIT (Writing), may be applicable to all Ministries, or it may be designed for just groups like: Evangelical Church, School, Missionary Agency or Organization, Christian Camp / Conference, or other named group.
        (2) WRIT formats include the perspective of    Jim@bcidot.org   via IOMs (Inter-Office Memos) to the Ministry Finance Team (MFTeam); THRDs, a hypothetical Online conversation with members of the MFTeam; GLEANINGS, or Scripture within context of the MFTeam; FWIW; A periodic editorial (For What it is Worth); TRUISM, or believed Ministry Finance principles; and via FAQ, response to Frequently Asked Questions