Payments 101: Part 2 - ACH & Wire Transfers (Individual)

In the United States there are many ways we pay our bills and each other. The Automated Clearing House (ACH) is generally seen as a consumer product but is used by companies as well. Wire transfers on the other hand, are a corporate product, but occasionally used by consumers.

Either way, it is important that bank staff understand how both products work, who the participants are, and their responsibilities. This course will provide a general overview of ACH and wire systems, transactions, and rules.

Learning Objectives

• Understand what the Automated Clearing House (ACH) Network is
• Identify the participants in ACH transaction processing
• Explain the flow of an ACH Entry
• Understand the basic responsibilities of the ACH participants
• Identify the participants of a wire transfer
• Explain the flow of a wire transfer
• Understand the basics of the wire transfer regulations

Course Outline:

• Define ACH
• ACH Participants (receiver, originator, ODFI, RDFI, ACH Operator)
• ACH Flow
• Participant Responsibilities
• Define Wire Transfer
• Wire Transfer Participants (Originator, Orig FI, Beneficiary, Beneficiary FI, Correspondent)
• Wire Transfer Flow
• Wire Transfer Regulations (OFAC, BSA, Reg J, UCC)

Rev–Sept. 2023. Course length ≈ 22 minutes.

This course is worth 0.5 CPE credit.