The ODFI will compile and batch process the ACH files received that day and send them to one of two clearinghouses-the Federal Reserve or EPN (the Electronic Payments Network).
Once BestJob has confirmed your bank account (often via a microdeposit), BestJob will issue payment using ACH files sent to their partner bank, the ODFI.Let’s walk through a payroll example to illustrate how a credit works using a fictional company called BestJob: Banks in these fund flows are either Originating Depository Financial Institutions (ODFIs) or Receiving Depository Financial Institutions (RDFIs)-learn the difference between ODFIs and RDFIs here.ĪCH credit is commonly referred to as direct deposit and widely used for fund flows like payroll an ACH credit functions much like a digital check (minus the check). In the case of an ACH debit, money is withdrawn (or pulled) from an account. An ACH credit deposits (or pushes) funds into a bank account. debit for ACH is determined by the direction money is moving.
