A company or individual that has been authorized by the Receiver to initiate either a
credit or debit ACH entry to their account. - ✔✔Originator
A financial institution that receives payment instructions from Originato
...
A company or individual that has been authorized by the Receiver to initiate either a
credit or debit ACH entry to their account. - ✔✔Originator
A financial institution that receives payment instructions from Originators and forwards
the entries to the ACH Operator. - ✔✔Originating Depository Financial Institution (ODFI)
ACH Payment Transaction are accumulated throughout the day, sent to the ACH
Operator, sorted by destination, and transmitted in groups at specified times. - ✔✔Batch
Process, store-and-forward system
An individual or a company that has authorized the Originator to initiate an ACH entry to
their account with the RDFI. - ✔✔Receiver
Financial institution identified by the routing number encoded on the MICR lineof a
check. - ✔✔Paying Bank (Payor's Depository Financial Institution)
A financial institution that receives ACH entries from the ACH Operator and posts the
entries to the accounts of its depositors. - ✔✔Receiving Depository Financial Institution
(RDFI)
The central clearing facility for ACH transactions. - ✔✔ACH Operator
A voluntary association of depository institutions that facilitate the clearing of checks or
electronic items through the direct exchange of funds between memebers. -
✔✔Clearing House
An entity that issues a credit or debit card to the Cardholder. - ✔✔Card Issuer
The party to whom a check is made payable. - ✔✔Payee
A person or entity that is issued a credit or debit account that is accessed through the
use of a card. - ✔✔Cardholder
Legal framework for the ACH Network - ✔✔1. ACH Rules
2. UCC 4A
3. Reg E
4. Reg CC
The national trade association for electronic payments, which establishes the rules,
industry standards and procedures governings the exchange of commercial ACH
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