IT Examiner School, Palm Springs, CA

ACH Basics

ACH transactions are instructions to either debit (e.g., pay a bill) or  credit a deposit account (e.g., deposit a paycheck).

The ACH Network is a batch processing, store and forward system.   Once ACH transactions are received by financial institutions, they are  stored and processed later.

ACH transactions are sent in batches by financial institutions and third‐ party service providers to ACH operators for processing one or two  business days before the settlement date.

ACH Basics

Originating Depository Financial Institutions (ODFIs) originate  transactions based on instructions from the client.

Receiving Depository Financial Institutions (RDFIs)  receives/completes the transaction. 

ACH network moves more than $39 trillion and 22 billion  electronic financial transactions each year, and volumes  continue to grow.