AAP Flashcards A company or individual that has been authorized by the Receiver to initiate either a credit or debit ACH entry to their account. - Originator A financial institution that receives payment instructions from Originators and forwards the entr

AAP Flashcards A company or individual that has been authorized by the Receiver to initiate either a credit or debit ACH entry to their account. - Originator A financial institution that receives payment instructions from Originators and forwards the entries to the ACH Operator. - Originating Depository Financial Institution (ODFI) ACH Payment Transaction are accumulated throughout the day, sent to the ACH Operator, sorted by destination, and transmitted in groups at specified times. - Batch Process, store-and-forward system An individual or a company that has authorized the Originator to initiate an ACH entry to their account with the RDFI. - Receiver Financial institution identified by the routing number encoded on the MICR lineof a check. - Paying Bank (Payor's Depository Financial Institution) A financial institution that receives ACH entries from the ACH Operator and posts the entries to the accounts of its depositors. - Receiving Depository Financial Institution (RDFI) The central clearing facility for ACH transactions. - ACH Operator A voluntary association of depository institutions that facilitate the clearing of checks or electronic items through the direct exchange of funds between memebers. - Clearing House An entity that issues a credit or debit card to the Cardholder. - Card Issuer The party to whom a check is made payable. - Payee A person or entity that is issued a credit or debit account that is accessed through the use of a card. - Cardholder Legal framework for the ACH Network - 1. ACH Rules 2. UCC 4A 3. Reg E 4. Reg CC The national trade association for electronic payments, which establishes the rules, industry standards and procedures governings the exchange of commercial ACH