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How does ACH work?

An Automated Clearing House payment is initiated by receivers, people or companies authorizing a payment to be made to their accounts. After that, originators, the people or companies making the payments, prepare to make a payments by giving transaction information to an Originating Depository Financial Institution (ODFI). The information for specific payments goes to an Automated Clearing House operator, who passes it on to the financial institution with the account receiving the payment.

Posted in ACH, ACH Processing, ACH Service on Sep 11, 2009