Originator
In an ACH transaction, the party that initiates the transfer — for example the employer sending a direct deposit (an ACH credit), or the company collecting a recurring debit (an ACH debit). The originator submits the entry to its bank, the Originating Depository Financial Institution (ODFI), which passes it into the ACH network for delivery to the receiver's bank. The Nacha Operating Rules hold the originator responsible for obtaining and retaining proper authorization before debiting a consumer's account.
Related forms
Related guides
What is an ACH authorization form?
An ACH authorization is your written permission letting an organization move money to or from your account electronically through the ACH network. A debit pulls money out; a credit pushes it in. Under Nacha rules, a consumer debit authorization must be written, signed, and clearly state the amount, timing, and how to revoke it.
How to stop an automatic ACH payment you authorized
To stop a recurring ACH payment you authorized, tell the company in writing that you revoke your permission to debit your account, and tell your bank too. Under Regulation E you can also order the bank to stop payment on the preauthorized transfer by notifying it at least three business days before the next debit.
Vendor payment authorization
Vendor payment authorization is the approval step in accounts payable where a business confirms an invoice is legitimate and signs off before money is sent. It typically matches the invoice to a purchase order and receiving record, routes it for sign-off, and verifies the vendor's bank details — creating an audit trail.