The following glossary contains a variety of terms that you may encounter while working with ACH Pro or ACH files in general.
- Automated Clearing House Network (ACH Network): The ACH Network is a US-based electronic funds transfer system regulated by NACHA.
- ACH Entry: An instruction within an ACH file that credits or debits a single account. For example, a payroll file would typically contain multiple entries, one credit for each employee and one debit for the company's account.
- ACH File: A NACHA-formatted text file that contains all the details needed to send transactions in the ACH Network. ACH Pro creates files in this format that you can provide to your bank to move money.
- Addendum: Optional remittance information that can be sent with each ACH entry. PPD abs CCD entries support one addendum line per entry with a max of 80 characters. This information is typically provided to the receiver by their bank when the transaction is received. It could contain invoice details or some other transaction description.
- Company: The originator of an ACH file. For example, a company sending payroll via ACH would be the originator. There are some scenarios where another entity creates a file on behalf of the originator (for example, an accounting firm preparing payroll for a company). The originator in these cases is still the company whose payroll is included in the file.
- Credit: In ACH and bank accounts in general, a credit is an increase to a bank account balance. For example, an employee receiving payroll would receive a credit entry.
- Debit: In ACH and bank accounts in general, a debit is a decrease to a bank account balance. For example, a company sending payroll would receive a debit entry to fund the payroll.
- Originator: The entity from which the entries in an ACH file originates. If you create a payroll file in ACH Pro for your own organization, your organization is the originator.
- Originating Depositing Financial Institution (ODFI): The financial institution that enters an ACH file into the ACH network. This is typically the originators bank.
- Recipient (Receiver): The individual or business that owns the account designated in an ACH entry.
- Receiving Depository Financial Institution (RDFI): The financial institution where a receiver banks.