ACH Terms and Definitions
Account Maintenance – A fee assessed to a Merchant
for changing the settlement bank account from the
existing bank account to a different bank account. This
fee covers the costs associated with verifying the new
ACH Network – Automated Clearing House Network is a
batch processing, store-and-forward system that
accumulates and distributes ACH transactions that are
received from ODFI (defined below) and are forwarded to
the specified RDFI (defined below) according to the
specific schedules established by the participants.
ACH Transactions – All Entries, including but not limited
to Debit and Credit Entries (defined below) that are
transmitted through the ACH Network.
Affiliate – a business entity effectively controlling or
controlled by another or associated with others under
common ownership or control.
ACH Chargeback – Any ACH item which is returned
designated with the following return codes: R05, R07,
R10, R29 and R51.
Business Banking Day – Monday through Friday
excluding banking holidays.
Credit Entry – An ACH Transaction that is intended to
deposit funds into a Receiver’s (defined below) account
which has been withdrawn from Merchant’s Settlement
Account (defined below).
Debit Entry – An ACH Transaction that is intended to
withdraw funds from a Receiver’s account for deposit into
Merchant’s Settlement Account (defined below).
Excessive Returns – Any merchant with more than the
defined percentage of returns in a single billing cycle
(calendar month), will be assessed an additional fee per
NACHA – National Automated Clearing House Association
responsible for establishing, revising and enforcing the
Operating Rules for the ACH Network.
Operating Rules – the operational rules
established by NACHA which govern all transactions and
parties utilizing the ACH Network.
ODFI – Originating Depository Financial Institution is the
financial institution that receives ACH Transactions from
Merchant through FORTE and then forwards these
Transactions (defined below) to the ACH Network.
Originator – A Merchant who has contracted with FORTE
to initiate ACH entries, on their behalf, to the ACH
RDFI – Receiving Depository Financial Institution is the
financial institution that receives the ACH Transactions
from the ODFI through the ACH Network and posts these
Transactions to the accounts of Receivers (defined
Receivers – An organization or individual consumer that
has authorized Merchant to initiate an ACH Transaction to
an account they maintain with a financial institution
Regulations – All federal, state and local regulations that
govern Internet business, consumer information, credit
card transactions and Transactions (as defined below),
including but not limited to the FCRA, federal Regulation
E and Title 31 of the Code of Federal Regulations Part
210, Gramm-Leach-Bliley Act, and Driver’s Privacy
Returned Entries – Any Transaction returned or rejected
by VeriCheck, ODFI or RDFI.
Reversal – A request made to the RDFI within four days
of effective entry date for return of a duplicate or
erroneous entry that has already been introduced into
the ACH system.
Settlement Account – An account established and
maintained by Merchant with a financial institution
through which the deposit of funds for Debit Entries and
the extractions of funds for Credit Entries are made.
Settlement Entry – a Debit or Credit Entry to
Merchant’s Settlement Account which corresponds to the
net amount owed Merchant by VeriCheck at the end of each
Business Banking Day.
Transactions – Any transfer of data or information from
Merchant to VeriCheck in a format pre-approved by VeriCheck,
including but not limited to ACH Transactions, Debit
Entries, Credit Entries, Verification Entries and
WSUPP – Written Statement Under Penalty of Perjury – A
written statement obtained by the RDFI from the
consumer prior to initiating a return for an entry that the
consumer claims is unauthorized, ineligible or improper
or for which the authorization has been revoked.