article thumbnail

What Is an ACH API and How Does It Work?

Stax

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.

ACH 88
article thumbnail

What is an Originating Depository Financial Institution (ODFI)?

Paystand

Table of Contents What is an originating depository financial institution (ODFI)? How does an ODFI work? The future of digital payments and ODFIs What are the two most common types of depository institutions? What is a receiving depository financial institution (RDFI)?

ODFI 40
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

NACHA Postpones Same-Day ACH Window Due To Fed Board

PYMNTS

PT), providing greater access for all ODFIs and their customers.”. In September of 2018, NACHA said it would expand same day ACH transactions and establish a “new window” that would “allow Same Day ACH files to be submitted until 4:45 p.m. ET (1:45 p.m. The new rule was agreed upon and passed on Sept.

article thumbnail

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

Stax

ODFI submits ACH file – The originator’s bank or payment processor, also known as the originating depository financial institution (ODFI) submits the ACH entry containing the payment details. This is the first step for both debits and credits. The bank then completes the payment on behalf of the customer.

article thumbnail

ACH Reversals vs. ACH Returns: What’s the Difference?

EBizCharge

When this happens, the Receiving Depository Financial Institution (RDFI) automatically initiates a return of the funds to the Originating Depository Financial Institution (ODFI). 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. How do ACH returns work?

ACH 52
article thumbnail

linked2pay rolls out white label KYC service for banks

The Paypers

(The Paypers) linked2pay , a US-based banking and payments technology provider, has launched a white label KYC service for ODFIs to automate payments underwriting, onboarding and management.

ODFI 28
article thumbnail

What is an ACH Deposit and How Does It Work?

Stax

Step 2: Transaction initiation Once your client fills out the form, they will either send it to the ACH provider or the ODFI, which stands for Originating Depository Financial Institution. This institution delivers the Automated Clearing House entries to the ACH operator.

ACH 88