ACH transactions are divided into two main types: credit transactions (where funds are pushed to an account, such as direct deposit) and debit transactions (where funds are pulled from an account, such as bill payments).
Regulation E provides protections for consumers using electronic funds transfers, including ACH transactions, and outlines the rights and responsibilities of consumers and financial institutions in EFT transactions.
Settlement in the ACH context refers to the actual movement of funds between financial institutions, facilitated by the Federal Reserve or other ACH operators, to complete the ACH transaction.
Same Day ACH enables faster processing and settlement of ACH transactions on the same business day, for both credit and debit transactions, within established submission deadlines.
The Nacha Operating Rules require that an ODFI must transmit a returned ACH debit entry to the RDFI no later than the close of business on the business day following the settlement date of the original entry.
