Receiver

In the context of Automated Clearing House (ACH) transactions, the term "Receiver" refers to the individual or entity who is authorized to receive payments through Direct Deposit or Direct Payment. A Receiver can be a consumer, customer, employee, or business, and they must authorize the transaction to allow funds to be applied to their depository account.

Key points about the role of a Receiver in ACH transactions include:

The role of the Receiver is crucial in ensuring that ACH transactions are processed smoothly and efficiently. By providing authorization and maintaining a suitable depository account, Receivers facilitate the secure and direct transfer of funds, which is a cornerstone of modern financial transactions. This system provides a reliable and efficient means of managing both personal and business financial transactions without the need for physical checks or cash handling.