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First
State Bank is an originator for ACH debits and credits. This automated
service provides you convenience and accuracy by replacing paper-based
transactions with more efficient electronic transactions. Your company's
payroll can be electronically deposited into your employees' personal
banking accounts at any financial institution. You may also authorize
us to accept debits and credits into your account. This service
can help eliminate costly delays.
"Sweep" arrangements are the automatic movement of funds
between two accounts of the same customer within First State Bank.
An example of a typical sweep account arrangement would be a customer
who wishes to maintain a $10,000 target amount in an operating account
and wishes any deposited funds greater than the target amount to
be moved automatically to an investment or repurchase agreement
account. Our data processing system will post all debit or credit
transactions to the operating account and determine an account balance.
If the account balance is less than the target amount, funds will
be moved out of the investment account to raise the operating account
balance to the target amount. If the account balance is greater
than the target amount, excess funds will be automatically invested.
The "target" amount can be set at any mutually agreed
level. Sweep agreements are commonly used for:
- Transfers between an operating account and an investment account.
- Transfers between an operating account and a payroll account.
- Transfers to protect one account from a possible overdraft or
to maintain a desired minimum balance.
Sweep arrangements often include a Repurchase Agreement account.
This allows for unlimited withdrawals without violating Federal
Reserve Regulation D rules, limiting the number of withdrawals per
month for money market or savings accounts.
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First State Bank offers rolled coin and strapped currency for our
customers' use. To have your coin/currency order ready when you
get to the bank, click here for a form
to complete and fax.
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First State Bank has the ability to electronically initiate transfers
of money involving an account at the financial institution. This
service is also referred to as Electronic Funds Transfer Agreement.
The use of EDI to transmit invoice data and payments can improve
a company's cash flow and may increase the amount of working capital.
Pre-authorized ACH debits and credits fall under this service. This
includes direct deposit of MasterCard, Visa, and Discover bankcard
transactions.
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Consumers and business or government purchasing agents have come
to expect, and perhaps even demand, the option of paying for goods
or services with Visa or MasterCard credit or debit cards. As a
seller, you want to give your customers every convenience, especially
when it comes time to pay for purchases. Boost your business and
increase overall sales volume by offering your customers more payment
options. You enhance customer relationships, meet customer expectations,
and increase revenue by accepting credit or debit cards. We have
partnered with TransFirst to provide our customers with first-rate
service, support, equipment, and supplies for the processing of
credit and debit cards.
Do you already have a merchant relationship
in place? Let us provide a price comparison. Our fees often
are less than the fees charged by competitors, and we don't require
long-term contracts. Be sure to give your current service provider
our ABA Routing number and your account number so that any payments
they process for you will come directly to your account with First
State Bank.
Do you have an interest in becoming a credit
card merchant? Let us know if you are interested in this
service. We will be happy to send you a brief summary of basic information.
Provide us with estimates of your expected credit card volume, and
we will provide you with no-obligation price quotes for various
processing options.
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What is a Repurchase Agreement and how can I
benefit?
A Repurchase Agreement (Repo) is the sale of a U.S. Government or
U.S. Government Agency security to a customer with an agreement
to buy the same security back at a later time. The bank pays the
customer a fee (interest) for the time that the bank uses the customer's
funds. A Repo may be set up with daily or extended term maturities.
A daily Repo matures each day but is automatically renewed for a
new amount the next day.
The funds in the customer's account are not considered deposits.
Because of this, Repurchase Agreements are not FDIC insured transactions.
Customer funds are not at risk, though, because the customer has
an interest in a government bond for the duration of the agreement.
Repurchase agreements are most often used by customers who:
- Have deposits that would exceed the limits of FDIC insurance
and/or,
- Wish to sweep funds daily from an operating account to an interest-earning
investment account.
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First State Bank offers Visa Business Cards through an arrangement
with JP Morgan-Chase. Please contact
us for an application form.
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EHL