A
AAP
An Accredited ACH Professional certified by NACHA.
ACH
Automated Clearing House - ACH is a reliable electronic funds transfer (EFT) system governed by NACHA, The Electronic Payments Association.
ACH Credit
An ACH credit occurs when the Receiver’s account is credited.
ACH Debit
An ACH Debit occurs when the Receiver’s account is debited.
ACH Operator
ACH operator is the term used to describe the switching mechanism within the settlement network that provides information to the network participants. The ACH operator calculates the settlement totals owed to and by the participating financial institutions based on the effective entry and processing dates of batches of transactions.
ACK (ACH Payment Acknowledgement)
An ACK entry is an acknowledgement by the RDFI confirming the receipt of a CCD credit entry.
ARC (Accounts Receivable Entry)
An ARC entry is a one time debit entry to the account of a receiver whom has previously been notified that their check (source document) will be converted into a single entry ACH transaction. The receiver must provide the source document to the originator via a drop box location or through the U.S. mail.
ATX (Financial EDI Acknowledgement)
An ATX entry is an acknowledgement by the RDFI confirming the receipt of a CTX credit entry.
Auxiliary On-Us Field
A field on the MICR line of a check or share draft. This is an optional field that can be found to the left of the routing number. The presence of this field makes the check in-eligible to be used as a source document for ARC, BOC and POP entries.
B
Banking Day
A day on which the DFI is open to the public and performing a majority of their banking functions, or, in the case of an ACH Operator, a day that the facility is operating.
BOC (Back Office Conversion Entry)
A BOC entry is a one time debit entry to the account of a receiver whom has, at the point of purchase, been notified that their check (source document) will be converted into a single entry ACH transaction.
Business Day
Refers to any weekday with the exception of Federal holidays.
C
CBR (Cross Border Payments)
Cross Border Payments – A standard entry class code used for the transmission of corporate cross border ACH credit and debit entries. The CBR format accommodates the exchange of information unique to cross border payments such as foreign exchange conversion, origination and destination currency, etc.). CBR is one of two standard entry class codes available for the transmission of cross border entries.
CCD (Corporate Credit or Debit)
A CCD entry is a credit or debit entry where funds are being transferred between two corporate entities.
Check-by-Phone
Check by Phone or "checks by phone" is the patented process of recreating and printing a check without having the original paper check. Check by Phone payments are remotely authorized and do not require the signature of the payer. See Check by Phone for benefits.
CIE
Customer Initiated Entry – A standard entry class code that enables a consumer to initiate an ACH credit into the ACH network whereby funds will be transferred to a company for payment of funds owed to that company. CIE entries are limited to credit applications.
Consumer Account
An account held at a DFI which has been opened by a natural person and is used for personal needs.
COR (Notification of Change)
A COR entry is initiated by an RDFI to inform an Originator of incorrect information submitted in an entry. The Originator must correct the information within 6 business days or before initiating another entry to the receivers account.
D
Demand Deposit Account
Traditional savings and checking accounts are generally demand deposit accounts.
DNE (Death Notification Entry)
A notice made only by the Federal Government to notify the RDFI of the death of a receiver.
DSO
Day Sales Outstanding (DSO) equals the total accounts receivables divided by average daily sales.
E
E-Check (or echeck)
E-Check payments are ACH payments that originate via the Internet, Telephone, POS or bill payment sent through the mail or unattended lockbox. For mail and lockbox payments, the paper check is not deposited, but converted into an ACH debit.
EFT
Electronic Funds Transfer
ENR (Automated Enrollment Entry)
ENR entries are initiated by an RDFI, at the request of a receiver, to enroll the receiver in direct deposit or direct payment to a Federal Government Agency.
Existing Relationship
There is an existing relationship between an originator and a receiver when there is either a written agreement in place or when the receiver has purchased goods or services from the receiver within the past two year.
F
File
A group of batched entries
G
H
I
IVR
Integrated Voice Response (IVR) or Integrated Voice Recognition are payment systems that use the telephone to automate the capture of transactional information from a payer. Payers may either enter their payment information (routing number, account number, check number) via telephone keypad or read the payment information verbally. See PayIVR for benefits.
J
K
L
M
Merchant Account
An account opened through a payment processor or financial institution that allows payees to accept credit card payments from a payer.
MICR
Magnetic Ink Character Recognition (MICR) is the information printed on a check in magnetic ink. The MICR information helps MICR scanners retrieve important information from the check including the routing number, account number and check number. Special magnetic ink toner cartridges are used by check printers as well as authorized users of Check by Phone systems.
MTE (Machine Transfer Entry)
An entry initiated at an electronic terminal, such as an ATM. This entry can either be a debit or a credit.
N
NACHA
National Automated Clearing House Association - The Electronic Payments Association - The national trade association responsible for developing and enforcing ACH Rules and Guidelines.
O
OCR
Optical Character Recognition.
ODFI
Originating Depository Financial Institution - Financial institutions that originate ACH transactions on behalf of its customers. ODFI's must abide by the NACHA Operating Rules.
OFAC
Office of Foreign Assest Control - The part of the US Treasury Department responsible for enforcing United States economic and trade sanctions.
On-Us Entry
Occurs when both the Receiver and Originator of a transaction have depository accounts at the same depository financial institution.
Originator
A company, individual or entity that initiates entries into the ACH network.
P
PBR (Consumer Cross-Border Payment)
A PBR entry is a debit or a credit entry to or from the account of a consumer where the participants are in two different countries.
POP (Point-of-Purchase Entry)
A one time debit entry to the account of a receiver whom is notified, at the point of purchase, that their check (source document) will be converted into a single entry ACH transaction. The source document must be voided and returned to the receiver at the point of purchase.
POS (Point-of-Sale Entry)
A one time debit entry to the account of a receiver where the entry is initiated at an electronic terminal. POS transactions are generally initiated with a merchant issued plastic card.
PPD (Prearranged Payment and Deposit Entry)
A credit or debit entry to the account of a receiver where there is either a standing or one time written authorization that has been signed or similiarly authenticated.
POP (Point-of-Purchase Entry)
A one time debit entry to the account of a receiver whom is notified, at the point ofpurchase, that their check (source document) will be converted into a single entry ACH transaction. The source document must be voided and returned to the receiver at the point of purchase.
R
RCK (Re-presented Check Entry)
An additional presentment of an eligible returned paper check through the ACH network.
RDFI
Receiving Depository Financial Institutions - A financial institution qualified by NACHA to receive ACH transactions.
Receiver
Any company, organization or entity authorizing an Originator to initiate an ACH credit or debit transaction
Remote Deposit
Remote Deposit or Remote Deposit Capture is the process of converting paper or mailed-in checks to an electronic file for processing. See Remote Deposit Capture for benefits.
Record
Information that is stored in either an electronic or other form. This information must be able to be retrieved in a readable form.
S
Settlement Date
The date an exchange of funds will be reflected on the books of the Federal Reserve Bank.
SHR (Shared Network Transaction)
A one time debit entry to the account of a receiver where the entry is initiated at an electronic terminal. The entry is initiated into a shared network where the ODFI and RDFI have an agreement.
Single Entry
A one-time transfer of funds.
T
TEL
Telephone Initiated Entries – A standard entry class code that enables the Originator to initiate a single entry debit to a consumer’s account pursuant to a consumer’s oral authorization obtained over the telephone. This type of transaction may be used only in those instances where (1) there is an existing relationship between Originator and Consumer, or (2) in the absence of such relationship the Consumer has been the party to initiate the call.
U
V
W
WEB
Internet Initiated Entries – A standard entry class code that enables an Originator to debit a consumer’s account pursuant to an authorization obtained from the Receiver via the Internet.
X
Y
Z