an electronic fund transfer through the Federal Reserve Bank from a checking or savings account Authorization The process of checking the validity and available balance of a customer's credit card before the transaction can be accepted

Type of electronic payment that is processed through the Automated Clearinghouse. The National Automated Clearinghouse Association (NACHA), a governing body, controls the format of ACH transactions.

Any payment that is processed via the ACH Network and goes to or from a receiver, or customer. The originator, third-party processor, originating depository financial institution and receiving depository financial institution are also involved in an ACH transaction, in addition to the receiver and network.

A payment transaction to or from a Receiver (the customer) processed via the ACH Network. The participants in an ACH Transaction are (1) the Originator (the merchant), (2) the Third-Party Processor, (3) the Originating Depository Financial Institution (ODFI), (4) the ACH Network, (5) the Receiving Depository Financial Institution (RDFI), and (6) the Receiver. Also see “Automated Clearing House (ACH) Network,” “Originator,” “Originating Depository Financial Institution,” “Receiver,” and “Receiving Depository Financial Institution, Third-Party Processor.