The Automated Clearing House (ACH) Network

Automated Clearing House (ACH) is a secure payment transfer system that connects all U.S. financial institutions. The ACH network acts as the central clearing facility for all Electronic Fund Transfer (EFT) transactions that occur nationwide, representing a crucial link in the national banking system. It is here that payments linger in something akin to a holding pattern while awaiting clearance for their final banking destination. Scores of financial institutions transmit or receive ACH entries through ACH operators such as the American Clearing House Association, the Federal Reserve, the Electronic Payments Network, and Visa.

ACH payments include:

• Direct Deposit of payroll, Social Security and other government benefits, and tax refunds;
• Direct Payment of consumer bills such as mortgages, loans, utility bills and insurance premiums;
• Business-to-business payments;
• E-checks;
• E-commerce payments;
• Federal, state and local tax payments.
• Non-Profit donations

Originator

Paperless Transaction Corp. initiates entries into the Automated Clearing House Network

Originating Depository Financial Institution (ODFI)

Paperless Transaction Corp’s. banks are participating financial institutions that originate ACH entries at the request of and by agreement with PTC customers.

Receiving Depository Financial Institution

Any financial institution qualified to receive ACH entries.

Receiver

An individual, corporation or other entity (donor) who has authorized a non-profit to initiate a credit or debit entry to a transaction account held at an RDFI.