Global ACH Terms
When you deal with Global ACH payments, different terms arise on your statements. There may be names tossed around in discussions, as well. It is important to know what each of these mean so you have a full understanding of how the process works. These are some terms commonly found.
There are two originators. The first is simply the person or company starting the ACH transaction. The second is the Originating Depositing Financial Institution or ODFI. Your ODFI is the bank or place the process begins.
Like the originators, there are two of these, with the first being the person receiving the payment. The Receiving Depository Financial Institution is the bank where the funds end up.
Whether you are making a single or mass payment, the ACH Operator is the company handling the transaction. The money starts with the originator, and then the operator is responsible for ensuring it reaches the receiver. There are only two of these operators that exist: the Electronics Payment Network and FedACH.
There is also a Gateway Operator who works specifically for the United States. Whether you are sending or receiving funds, the GO handles the transactions in this country. It may be the same person as the ACH Operator, another institution, or a bank.
There are other terms you may find helpful to know when dealing with Global ACH. These, however, will make sure you have basic knowledge of titles that may be thrown around. Whether you are discussing them with your clients or financial institution, you want to know these.