The ODFI is the partner bank of the Originator and originates ACH transactions. The ODFI submits files to an ACH Operator, either the Federal Reserve, or The Clearing House.

Welcome to Learn, where we provide straightforward, easy-to-understand definitions of the payments industry. The two kinds of financial institutions in the ACH network are ODFIs …

Originating Depository Financial Institution or ODFI is a banking term in the United States used in connection with ACH Network (ACH). In the ACH flow, the ODFI acts as the interface between …

Nov 19, 2024 · An Originating Depository Financial Institution (ODFI) initiates ACH transactions, connects originators with the ACH network, and ensures compliance with NACHA rules.

An Originating Depository Financial Institution (ODFI) is a bank or credit union that initiates electronic payments on behalf of their customers to transfer funds to other financial institutions.

TFM: The Originating Depository Financial Institution is the financial institution which delivers Automated Clearing House (ACH) entries directly or indirectly through a third party to its ACH …

In ACH payments, two key players ensure transactions are processed smoothly: the Originating Depository Financial Institution (ODFI) and the Receiving Depository Financial Institution …

Apr 1, 2025 · The Originating Depository Financial Institution (ODFI) is a pivotal component in the Automated Clearing House (ACH) network, serving as the initial point of entry for ACH …

Mar 3, 2025 · In very basic terms, the ODFI represents the financial institution that initiates ACH transactions, while the RDFI represents the bank that receives funds through the ACH network.

Dec 8, 2025 · What Is an ODFI (Originating Depository Financial Institution)? Understand the ODFI: the financial institution initiating electronic transfers, managing ACH compliance, and …