ARC

A Standard Entry Class Code that allows an ACH debit to be created from a consumer check sent through standard U.S. mail or drop box.1

Addenda Record

A record type used to carry supplemental information for account holder identification or to provide payment information to Receiver and RDFI.

Batch

Credit

An Originator transfers funds to a Receiver's account.  Example: A consumer using automatic bill pay through their cable company.

Consumer Account

An account held by a person for personal or family use.

Debit

Funds are collected from a Receiver's account and transferred to an Originator's account, regardless of which party initiated transaction.  Example: A cable company can debit consumer accounts each month for monthly billing.

Entry

An electronic record representing a transfer of funds.

Originator

The transaction party that initiates an ACH entry.  Requires arrangement with a Receiver.  Originator may be a company or a consumer.

Originating Depository Financial Institution

Also called ODFI.  Institution that receives payment instructions and forwards to ACH system. An institution can be a Receiving Depository Financial Institution (RDFI) without acting as an ODFI.  However, must agree to act as RDFI if institution wishes to originate entries.

ODFI

See Originating Depository Financial Institution

Payee

A party to whom funds are payable

PBR

Standard Entry Class Code used for transmission of consumer cross-border debits and credits1

POP

Standard Entry Class Code used for in-person purchase of goods or services by consumers.  Require written authorization and account information from source document (example: a check) obtained from consumer at point-of-purchase. Source document is voided and used only for transmission information.1

PPD

Standard Entry Class Code used for pre-arranged payment and deposit entries.  Most common uses are direct deposit and bill payment.  Requires standing authorization.1

Prenotification

A zero-dollar entry transmitted solely to verify Receiver's account information and inform party of upcoming transaction

Receiver

The transaction party that has authorized an Originator to initiate an ACH entry.  The Receiver can be a consumer or a company.1

Receiving Depository Financial Institution

Also called RDFI.  The institution that receives ACH entries from the ACH system and posts to accounts of Receivers.1

RDFI

See Receiving Depository Financial Institution

Returns

An entry returned by either DFI or the ACH system because it cannot be processed.

Reversals

Any entries sent to reverse a previously transmitted erroneous entry.  For example: A company that pays an employee the incorrect amount would submit a reversal.

RCK

Standard Entry Class Code used for a single debit for representing a check returned by check collection system for insufficient funds.

Standard Entry Class Code

A three-letter code that identifies a specific payment application. See List of Standard Entry Class Codes for the complete list.  Also called SEC Code.

TEL

Standard Entry Class Code used for single debits to a consumer account.  Requires oral authorization obtained by telephone.  Can only occur when there is a preexisting relationship between two parties or the Receiver initiates the phone call.1