A participating financial institution that originates ACH entries at the request of and by agreement with its customers.

A financial institution that initiates and warrants electronic payments through the ACH network on behalf of its customers.

A member institution which is responsible for the origination of ACH transactions. This institution may deposit items directly with an ACH or may work through a processing center which is the actual sending point. ODFIs must abide by the provision of the NACHA Operating Rules and Guidelines.

A financial institution that is qualified to initiate deposit entries submitted by an employer as part of the direct deposit process.

A term used when referring to the clearing of ACH, or Electronic Check, transaction to describe the merchant's bank. The merchant's bank handles the submission of Electronic Check transactions received by the merchant to the ACH Network for clearing.