Stax

JUNE 23, 2025

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. Using the IRS electronic funds withdrawal option is free and it is way more convenient than mailing a check.

ACH

Stax

JUNE 27, 2024

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). Common uses for ACH payments Some common uses of ACH payments include: Payroll – Businesses all over the US use ACH transfers to pay their employees’ paychecks.

Wire Transfer

Nanonets

MARCH 21, 2023

ACH is most commonly used for direct deposit of payroll, payment of bills, and business-to-business payments. The ACH network then combines each message into a batch that is sent to the bank receiving the request (the receiving depository financial institution, or RDFI). If a transaction fails, the RDFI has up to 48 hours to report it.

ACH