IT Examiner School, Seaside, CA

Slide 8: Typical ACH Credit Origination Process

1. The payee authorizes an employer to deposit his or her paycheck through direct deposit.

2. The employer submits its direct deposit payroll ACH files to the ODFI (the employer’s financial institution).

5. The RDFI credits the

payee’s account, making the funds available.

6. The ACH operator settles the transaction between the ODFI and RDFI.

4. The ACH operator routes the transaction to the payee’s financial institution (RDFI).

3. The ODFI verifies the files and submits them through the ACH operator.

Typical ACH Debit Process

1. The payer sends the ACH payment information and authorization to the payee.

2. The payee submits the ACH payment information to their financial institution.

5. Funds are made available to the payee and the payer’s account is debited.

6. The ACH operator settles the transaction between the ODFI and RDFI.

4. The ACH operator routes the transaction to the RDFI.

3. The ODFI routes the transaction to the ACH operator.