Participants that are involved in electronic payments are
the individuals or companies that request the payment transaction,
the banks that are involved, and clearing houses. Clearing houses
are central facilities through which the banks can send or receive
the transaction information.
The following list introduces the
specific terminology that NACHA uses to define these roles.
- Originator. – The
company or individual that initiates the transaction. The transaction
can be either credit or debit.
- Originating Depository Financial Institution (ODFI). –
This institution receives transaction information from the Originator
and forwards the transaction information to ACH Operator.
- ACH Operator –
Federal Reserve Bank (FRB) or private organization.
- Receiving Depository Financial Institution (RDFI). – Any
financial institution that is qualified to receive ACH entries that
agree to abide by the NACHA Operating Rules and Guidelines. The RDFI
is responsible for posting entries and for providing funds availability, which are
determined by the Settlement Date in the Company Batch Header Record.
- Receiver – The company
or individual that authorizes the originator to initiate ACH to the
receiver's account.
- Third Party Service Provider – The Third Party Service Provider provides
services on behalf of the originator, ODFI or RDFI.