While ACH transactions can be somewhat complex, understanding the possible types of ACH transactions is essential.
Using Solid's Create an Account API, you can open an account. Next, you can use the Solid ACH infrastructure (ACH APIs and Webhooks) to originate and receive ACH transfers.
For example, an account is opened for CopyCraft LLC on the Solid Platform. Like any business, CopyCraft pays its vendors and gets paid by its customers. CopyCraft only uses ACH to pay and get paid.
CopyCraft pays:
- Supplier Wholesale Paper for one-off supplies. Wholesale Paper has a bank account at Chase.
- Utility company TG&E for recurring monthly utilities. TG&E has a bank account at Citi.
CopyCraft gets paid by:
- Customer Super Salon for printing flyers one-off. Super Salon has an account at Wells Fargo.
- Customer Tustin University for recurring print jobs. Tustin University has a bank account at PNC.
This article breaks it down into four possible ACH transactions originated and received by CopyCraft.
1a: ACH Credit Originated by CopyCraft (to pay Wholesale Paper)
- CopyCraft instructs its bank to make a payment via ACH to Wholesale Paper's Chase Bank Account Number and Routing number.
- In this case, CopyCraft is originating an ACH Credit, where CopyCraft, instructs its bank to credit Wholesale Paper's Chase Bank, via an ACH Transfer.
- CopyCraft's Bank is the Originating Depository Financial Institution (ODFI).
- Wholesale Paper's Bank, Chase is the Receiving Depository Financial Institution (RDFI).
1b: ACH Debit Originated by CopyCraft (to get paid by Tustin University)
- CopyCraft instructs its bank to pull a payment via ACH from Tustin University's PNC Bank Account Number and Routing number.
- In this case, CopyCraft is originating an ACH Debit, where CopyCraft, instructs its bank to debit Tustin University's PNC Bank Account, via an ACH Transfer.
- CopyCraft's Bank is the Originating Depository Financial Institution (ODFI).
- Tustin University' Bank, PNC is the Receiving Depository Financial Institution (RDFI).
2a: ACH Credit Received by CopyCraft (to get paid by Super Salon)
- Super Salon instructs its bank to push payment via ACH from its Wells Fargo account to CopyCraft's Bank Account Number and Routing number.
- In this case, CopyCraft is receiving an ACH Credit, where Super Salon, instructs its bank Wells Fargo to credit CopyCraft's Bank Account, via an ACH Transfer.
- Super Salon's Bank, Wells Fargo is the Originating Depository Financial Institution (ODFI).
- CopyCraft's Bank is the Receiving Depository Financial Institution (RDFI).
2b: ACH Debit Received by CopyCraft (to pay TG&E)
- TG&E, instructs its Citi account, to pulls funds from CopyCraft's Bank Account Number and Routing number.
- In this case, CopyCraft is receiving an ACH Debit, where TG&E, instructs its bank Citi to debit CopyCraft's Bank Account, via an ACH Transfer.
- TG&E's Bank, Citi is the Originating Depository Financial Institution (ODFI).
- CopyCraft's Bank is the Receiving Depository Financial Institution (RDFI).