ACH Origination Quick Guide

  • An ACH Originator is any entity or person that creates an ACH transaction.
  • ACH entries are categorized as “consumer/PPD” or “corporate/CCD/CTX.”
  • ACH is capable of crediting or debiting checking or savings accounts.
  • ACH entries are received by all financial institutions.
  • ACH is a batch system (not real time).
  • ACH entries are irrevocable once they have been sent for processing.

ACH Legal Framework:

You are required to abide by multiple rules and agreements including, but not limited to, the following when initiating ACH transactions:

  • Nacha Operating Rules (
  • Regulation E (for consumer entries)
  • UCC4 (for corporate credits)
  • Authorizations from employees and/or customers
  • Bank and Corporate agreements

Your Responsibilities as an Originator:

  • Obtain proper authorizations and retain authorizations for two years past revocation. Please see ACH Authorization Requirements for more information.
  • Send entries on the proper date with the correct effective date.
    • Traditional ACH (future effective date): Picked up and processed at 6:55am CST, 10:50am CST, 1:20pm CST, and 4:30pm CST for next day processing.
    • Same Day ACH (same day effective date): Picked up and processed at 6:55am CST, 10:50am CST and 1:20pm CST for same day processing.
  • Give appropriate notice to debtor if changing amount or date of pre-arranged payment.
    • Seven (7) calendar days notice for a change in date (consumer and corporate).
    • Ten (10) calendar days notice for a change in the amount (consumer).
  • Cease subsequent entries when notified. Please see ACH Return Reference Guide for more information.
  • Make necessary changes to payee account information within six (6) banking days upon receipt of a Notification of Change (NOC) or before another entry is submitted. Bank Five Nine will notify you of any NOCs received on your behalf via secure email. Please see NOC Reference Guide for more information.