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What Is an ACH API and How Does It Work?

Stax

The operator will send the files to the recipient’s bank, which is called the RDFI (Receiving Depository Financial Institution). You will know if the RDFI has pulled the funds when you receive your payment. Ease of integration Looking at a solution’s documentation is another essential step when selecting an API provider, says Austin.

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ACH Payment vs Wire Transfer: What’s the Difference and Which Payment Method Should You Use?

Stax

The utility company (the ODFI) passes the ACH files to the financial institution, which then sends a file with the payment request to the customer’s bank (the RDFI). Imagine having to fill out paperwork, sign documents, and physically visit your bank every time you want to make a payment.

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What is an ACH Deposit and How Does It Work?

Stax

Step 3: Complete the payment request The ODFI or ACH network will send a request from the business’ checking account to the individual’s account, also known as the RDFI, or Receiving Depository Financial institution. Step 4: Payment processing Once the RDFI approves the fund’s amount, the direct payment will be processed.

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What Does Return Mobile ACH Payment Mean?

Payment Savvy

Receiving Depository Financial Institution (RDFI) The RDFI is the bank that is being charged or refunded. If there is a problem with the payment processing, it is usually the RDFI that sends an ACH return message. It receives the ACH entry and submits it to the Receiver.

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ACH SEC Codes

Payment Savvy

There’s the ODFI, which stands for Originating Depository Financial Institution, and there’s the RDFI, which stands for Receiving Depository Financial Institution. To put it simply, the ODFIs are the financial institutions that send the transaction, while RDFIs are the institutions that receive it.