The direct deposit or payment is initiated by the originator (employer/business) via an ACH network. In general, ACH portals allow you to set up both one-time and recurring payments.
2. The payment amounts are electronically entered into the ACH network.
3. The ACH network establishes contact with the employer's bank, also known as the Originating Depository Financial Institution (ODFI).
4. The ODFI aggregates payments and sends them to an ACH operator in batches.
5. The ACH operator transfers funds to employees' banks, also known as Receiving Depository Financial Institutions (RDFIs). RDFIs then deposit the funds into the employees' bank accounts.