Definitions for "Third Party Processor"
Keywords:  ach, merchant, acquirer, odfi, rdfi
A party, which processes ACH files and or items on behalf of one of the participants in the ACH system. Examples of third party processors are payroll processing companies which create ACH files for transmission to the ACH Operator on behalf of an Originator or ODFI, a data processing company which receives incoming ACH files and processes them for an RDFI, or a correspondent bank which processes ACH files for its correspondent. Under the ACH rules, third party processors are essentially invisible; the party they are processing for bears virtually all of the liability and risk for their third party processor's actions.
A company that receives and processes ACH transaction data for a financial institution.
a company that passes your transactions though their own merchant processor