How ACH Works

Put very simply, the ACH network moves money from one individual to another--electronically. The process is governed by NACHA, The National Automated Clearing House Association(nacha.org), operating rules and business processes.

The Originator can be any individual, corporation or other entity that initiates entries into the Automated Clearing House Network.

The Originating Depository Financial Institution (ODFI) is a participating financial institution that originates ACH entries at the request of and by (ODFI) agreement with it's customers. ODFI's must abide by the provisions of the NACHA Operating Rules and Guidelines.

The Receiving Depository Financial Institution (RDFI) is any financial institution qualified to receive ACH entries that agrees to abide by the NACHA Operating Rules and Guidelines

The Receiver can be any individual, corporation or other entity who has authorized an Originator to initiate a credit or debit entry to a transaction account held at an RDFI.