Glossary

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There are currently 14 names in this directory
ABA NUMBER
See Routing/Transit Number.

ACH
An acronym used to identify the Automated Clearing House Network.

ACH AUTHORIZATION
Agreement by a receiver to allow an ACH credit or debit entry to its account. Authorizations for credit transactions may be oral, but consumer debit transactions must be authorized in writing or similarly authenticated by other means (e.g., by digital signature or PIN if by computer).

ACH CREDIT
A transaction through the ACH Network originated to pay a receiver (deposit into an account).

ACH DEBIT
A transaction through the ACH Network originated to remove funds from the receiver (withdrawal from an account).

ACH NETWORK
Funds transfer system governed by the rules of the National Automated Clearing House Association, which provides for the interbank clearing of electronic entries for participating financial institutions.

ACH OPERATOR
The ACH operator processes entries between an originator and receiver. There are currently two ACH operators -- the Federal Reserve Bank and EPN (Electronic Payments Network).

ACQUIRER
A financial institution or Merchant Service Provider (MSP) that facilitates and manages credit card processing on behalf of a merchant customer.

ACQUIRER BANK
The bank or financial institution that holds the merchant's bank account that is used for collecting the proceeds for credit card processing.

ACQUIRING PROCESSOR
The credit card processing entity with which an acquirer partners in order to provide merchants with transaction clearing, settlement, billing and reporting services.

ADDENDA RECORD
An ACH record type that carries supplemental data needed to completely identify an account holder(s) or provide information concerning a payment to the RDFI or receiver.

ANSI
The American National Standards Institute.

AUTHENTICATION
A critical data security technique used to prevent the alteration of data as the data are exchanged between the participants in an ACH transaction.

AUTOMATED DEPOSIT
A deposit made directly to an account at a DFI through the ACH network (i.e. payroll deposits, social security payments, and retirement benefits).