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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.

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