IT Examiner School, Palm Springs, CA

ACH Steps

Step 1:   An Originator– whether that’s an  individual, a corporation, or  another entity– initiates  either a Direct Deposit or  Direct Payment transaction  using the ACH Network. 

• Written or electronic  instructions • Instructions often are  remotely submitted via the  Internet  • Phone or facsimile  instructions

The payment transaction  instructions are delivered to  the ODFI:

ACH Steps

Step 2:   The ODFI receives,  verifies, and enters the  ACH payment transaction  at the request of the  Originator.  The ODFI aggregates  payments from customers  and transmits them in  batches at regular,  predetermined intervals to  an ACH Operator.

• ACH Operator  receives batches of  ACH entries from the  ODFI. • Operator acts as the  ACH network switch.