Payment Systems (2) Flashcards
Originator
A company or individual that has been authorized by the Receiver to initiate either a credit or debit ACH entry to their account.
Receiver
An individual or company that has authorized an Originator to initiate an ACH entry to their account with the RDFI.
Originating Depository Financial Institution (ODFI)
A financial institution that receives payment instructions from Originators and forwards the entries to the ACH Operator.
Receiving Depository Financial Institution (RDFI)
A financial institution that receives ACH entries from the ACH Operator and posts the entries to the accounts of its depositors.
ACH Operator
The central clearing facility for ACH transactions.
Third-Party Service Provider
A third-party that processes ACH files and/or entries on behalf of financial institutions and/or Originators.
Third-Party Sender
A third-party that provides ACH services to the Originator, and, in that capacity, acts as an intermediary between the Originator and ODFI.
Card Issuer
An entity that issues a credit or debit card to the Cardholder.
Acquirer (Processor, Merchant Bank or Merchant Processor)
The financial institution that contracts with a merchant to initiate payment requests to a card association or company in the context of credit and debit card payments.
Cardholder
A person or entity that is issued a credit or debit account that is accessed using a card.
POS/ATM/Credit Card Network
Network which provides switching facilities for the routing of credit, debit and ATM card transactions between Acquirers and Card Issuers.
Paying Bank (Payor’s Depository Financial Institution)
Financial institution identified by the routing number encoded on the MICR line of a check.
Payee
The party to whom a check is made payable.
Bank of First Deposit (Payee’s Depository Financial Institution)
The first bank to which a check is deposited or transferred.
Payor (Check Writer, Maker or Drawer)
The party obligated to pay on a check.
Clearing House
A voluntary association of depository institutions that facilitate the clearing of checks or electronic items through the direct exchange of funds between members.
Correspondent Bank
Private depository institution, Bankers’ Bank or Federal Reserve Bank providing clearing or settlement services to a Paying Bank or Bank of First Deposit.