AUTOMATED CLEARINGHOUSE PAYMENTS

1
AUTOMATED CLEARINGHOUSE PAYMENTS
Method of Making Payments to or From a Consumers
Bank Account. Payments Made Electronically
Through Automated ClearingHouse Network.
Network Governed By Operating Rules Rules Issued
By National Automated Clearinghouse
Association. NACHA Consists of 36 Regional
Clearinghouse Associations Regional Associations
Consist of 13,00 Depository Institutions
ACH Network , a Nationwide Counterpart to the
Checking System ACH Network Used for Electronic
Transfers Between Accounts At American Financial
Inst Most Commonly Used for Automated Deposits of
Salaries or Bill Payments Transfers Governed by
EFTA Reg. E to the Extent Consumer Accounts
Involved Transfers Governed by UCC 4A to the
Extent Between Business Accounts
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BASIC TERMINOLOGY OF ACH TRANSFERS
Receiver NACHA Rules 13.1.43 Credit Transfer,
Payee Debit Transfer, Payor
RDF Sort and Post to Respective Accounts
Originator NACHA Rules '13.1.33 Credit Transfer,
Payor Debit Transfer, Payee
Automated Clearinghouse Operator Carries Funds
From ODFI To RDFI NACHA Rules 13.1.1 Generally
Local Federal Reserve Bank
Message Entry from Originator Batches a part of
large Volume of messages
ACH Operator process Sorts by Region Determines
Receiving ACH Operator Transmits to RDFI
ODFI Examines Batches Directly Processes On-us
entries Send others To ACH Operator Binds itself
to Pay for all Credit transfers
Receiving Depository Institution NACHA Rules
'13.1.45 Credit Entry Payment Made Debit Entry
From Which Payment Made
Originators Depository Financial
Institution ODFI NACA Rules 13.1.31 Credit
Entry, Account From Which Payment Made Debit
Entry, Account To Which Payment Is Made
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CREDIT ENTRY
Receiver NACHA Rules 13.1.43 Credit Transfer,
Payee
RDF Sort and Post to Respective Accounts
Originator Credit Transfer, Payor Employer Send
Pay Check
Automated Clearinghouse Operator Carries Funds
From ODFI To RDFI NACHA Rules 13.1.1 Generally
Local Federal Reserve Bank
Message Entry from Originator To ODFI
ACH Operator process Sorts by Region Determines
Receiving ACH Operator Transmits to RDFI
ODFI Examines Entry Directly Processes On-us
entries Send others To ACH Operator Binds itself
to Pay for all Credit transfers
Receiving Depository Institution NACHA Rules
'13.1.45 Credit Entry Payment Made Payment Made
Originators Depository Financial
Institution Credit Entry, Employers Account From
Which Payment Made
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DEBIT ENTRY
Receiver NACHA Rules 13.1.43 Debit Transfer, Payor
RDF Sort and Debits Respective Accounts
Originator Debit Transfer, Payee Electric Company
Sends Bill
Automated Clearinghouse Operator Carries Funds
From ODFI To RDFI NACHA Rules 13.1.1 Generally
Local Federal Reserve Bank
Message Entry from Originator To ODFI
ACH Operator process Sorts by Region Determines
Receiving ACH Operator Transmits to RDFI
ODFI Examines Entry Directly Processes On-us
entries Send others To ACH Operator
Receiving Depository Institution NACHA Rules
'13.1.45 Debit Entry From Which Payment Made
Originators Depository Financial
Institution Debit Entry, Creditors Account To
Which Payment Made