How ACH payments work?

How ACH payments work?

Aside from the Automated Clearing House network (which connects all the banks in the United States), there are three other players involved in ACH payments:
  1. The Originating Depository Financial Institution (ODFI) is the banking institution that initiates the transaction.
  2. The Receiving Depository Financial Institution (RDFI) is the banking institution that receives the ACH request.
  3. The National Automated Clearing House Association (NACHA) is the nonpartisan governmental entity responsible for overseeing and regulating the ACH network.