2 PAYMENT METHOD PROFILES: PAY BY BANK
Supply Chain Structure Automated Clearing House (ACH)
ACH
Originating Depository FI
Receiving Depository FI
Debit/Credit Originator’s Account
Debit/Credit Receiver’s Account
Originator/ Client
Receiver/ Payee
Figure 2.9
Key Players Originating Depository Financial Institution (ODFI) The institution of the account that initiates the ACH transaction Receiving Depository Financial Institution (RDFI) The institution of the other account involved in the transaction
Type of Transactions ACH Credit An amount is added to an account balance ACH Debit An amount is removed from an account balance
The ODFI will send the ACH operator (either the Automated Clearing House or the Federal Reserve) the information to process the transaction and funds will flow as instructed to/from the RDFI. 466
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