| TERM | DEFINITION |
|---|---|
|
Originator |
A customer of an ODFI who initiates a payment transfer. |
|
Payer |
A customer of an RDFI whose account is debited in accordance with the payment instruction sent to the RDFI by the originator. |
|
Payer’s Bank |
The ODFI where the payer has an account. It assumes the role of an ODFI when it debits the payer’s account and transfers the funds through ACH. |
|
Beneficiary |
The person specified in the payment order to receive the transferred funds and whose account is credited by the RDFI. |
|
Beneficiary’s bank |
The ODFI where the beneficiary has an account. It takes on the role of an RDFI as it receives the transferred funds from the GACH and credits the beneficiary’s account. |
NOTE:
ODFI - Originating Depository Financial Institution
RDFI - Receiving Depository Financial Institution