Since all financial institutions are required to accept ACH, transactions can be posted to any bank, credit union, or savings and loan within the Federal Reserve system. Companies that originate these transactions are called Originators.
Transactions can be either debits or credits.
Examples of debit transactions include utility payments, account drafts, membership fees, dues, insurance premiums, etc. Credit transactions can be for Direct Deposit of Payroll or Disbursements of Electronic Credits, electronically crediting a deposit account for the net amount. Bank of Tidewater has implemented a comprehensive ACH processing system that allows us to originate and receive ACH transactions on our commercial customers' behalf. Typical billing processes cost time and money. Mail the customer the bill, wait for a payment, open the envelope containing the payment, send the employee to the bank to a make deposit.