Stax

JUNE 23, 2025

The way a typical ACH transfer works is as follows: You will initiate the transaction as the originator by sending a Nacha formatted data file containing information about the desired payment to your bank which is called the ODFI (Originating Depository Financial Institution). The ODFI collects these files and sends them to an ACH operator.

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Finextra

JULY 14, 2025

These institutions will be required to expedite the return of certain fraudulent or unauthorized ACH credits and may be held liable for refunds to originating banks (ODFIs). Phishing and social engineering scams targeting consumers will also become more prevalent, further complicating the landscape.

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EBizCharge

OCTOBER 17, 2023

Fortunately, the National Automated Clearing House Association (NACHA) , the governing body over the ACH Network, has processes, procedures, and safeguards to protect consumers and merchants from transaction errors. An ACH return must go through a series of steps to return the funds to the ODFI once it meets the criteria for a return.

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Nanonets

MARCH 21, 2023

Each transfer is sent as a message within a batch of outgoing requests by the bank making the request (known as the originating depository financial institution, or ODFI). Day 1, 10:00 PM: The processor works in conjunction with your bank (the ODFI) to submit a file to the ACH network.

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PYMNTS

SEPTEMBER 9, 2016

Banks also don’t want to engage in costly and time-consuming reversals. Of the 420-plus customers, Rojas said about 140 are currently using one of the company’s two ACH products, dubbed ACH-ODFI and ACH-RDFI. ODFI focuses on the origination of transactions, while RDFI concentrates on receiving transactions.

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EBizCharge

JULY 16, 2024

These preventative measures are critical for mitigating risks and protecting against the consequences of data theft, which can have far-reaching implications for consumers and financial institutions. These requirements can protect consumers by confirming their consent, prevent errors, and reduce the likelihood of disputed transactions.

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Payment Savvy

FEBRUARY 23, 2023

It is a kind of payment that goes from a commercial account holder to a consumer. There are five parties involved in making the payment processing go through: Originator This is a person who submits an ACH transfer to the ODFI. In rare cases, you may have the ACH Operator or ODFI do that. clearing, delivery, settlement).

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