ACH Origination Overview

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An originator sends ACH transactions to be processed through the Federal Reserve Bank using the ACH network. ACH Origination reduces paper costs and automatically transfers funds.

An Originator may initiate funds for a member or a company. Some examples of ACH Origination activity are:

  • Loan payments
  • Child support payments
  • College student allowances
  • Direct deposit of payroll
  • Direct deposit of funds, such as interest, dividends, and retirement

There are twelve Federal Reserve Districts. Portico transmits the ACH return items for the Originator to the Dallas Federal Reserve Bank, which is located in the 11th District. Then, the Federal Reserve Bank forwards the ACH items to the appropriate financial institution.

All ACH items will be processed through the Dallas Federal Reserve Bank even though the credit union may not be located in the 11th District. Credit unions that are not located in the 11th District will be certified as a remote Originator.

ACH Origination is comprised of two windows:

  • Batch Maintenance window
  • Member/GL Items window