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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. If the transfer is initiated on the same business day, then clearance, settlement, and disbursement may happen on the same day.

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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?

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How to Stay Compliant with NACHA Requirements

EBizCharge

CTX transactions are also common for invoice settlements and other financial interactions that benefit from detailed record-keeping and reporting. This includes both Originating Depository Financial Institutions (ODFIs) and Receiving Depository Financial Institutions (RDFIs). How often are NACHA rules updated?

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What Does Return Mobile ACH Payment Mean?

Payment Savvy

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. Originating Depository Financial Institution (ODFI) The ODFI receives the request from the Originator and passes it to the ACH Operator. clearing, delivery, settlement).

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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.