Banner Bank ACH Originator Guide

Electronic Data Interchange (EDI): The movement of payment-related data related to an entry(ies) between corporate trading partners. Entry/Entries: A credit or debit transaction to a Receiver’s account held with an RDFI. An entry can be utilized for both live-dollar and non-monetary purposes. Nacha: The agency that manages the development, administration, and governance of the ACH Network. Notification of Change (NOC): A non-monetary entry transmitted by an RDFI to notify the ODFI and ultimately, the Originator, of a correction that must be made to an ACH Entry. Originating Depository Financial Institution (ODFI): The financial Institution that maintains a contractual relationship with an Originator and submits ACH Entries into the Network. The ODFI acts as a gatekeeper and is responsible for the risk management and oversight of Originators. Originator: The organization that agrees to initiate either debit and/or credit entries into the ACH Network. The Originator must obtain proper authorization pursuant to each type of ACH Entry and submit lawful entries. Prenotification (Prenote): A non-monetary entry transmitted by an Originator to an RDFI to verify the accuracy of account information prior to submitting a live Entry. Receiver: The intended recipient of an ACH Entry, either a consumer or business. The Receiver must authorization the Entry pursuant to the specific ACH Entry type. Receiving Depository Financial Institution (RDFI): The financial Institution that receives incoming ACH Entries on behalf of the Receiver. The RDFI plays an important role in the ACH Network and must comply with all Rules. Same Day ACH: The delivery of ACH Entries within the same business day pursuant to ACH Network cutoff times and dollar amount limits. Settlement Date: The date assigned by the ACH Operator when the requested Entries settle by both the Originator and Receiver. Standard Entry Class (SEC) Code: A three-character code used to identify the format, application, and authorization method for the ACH Entry. Third-Party Sender: If your company originates entries on behalf of another party and that party does not have an ACH agreement or relationship with Banner Bank, you may be considered a Third-Party Sender in the ACH Network. Please contact your Treasury Management Consultant if you believe your company may be acting as a Third-Party Sender.

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