2009

Table Of Contents
About ACH Payments
ACH Terminology
2
14 Payflow ACH Payment Service Guide
ACH Terminology
TABLE 2.1 ACH terminology
ACH Operator An ACH Operator is a central clearing facility that provides distribution and
settlement of electronic payments. ACH Operators clear debits and credits
electronically, rather than through the physical movement of checks. Currently there
are four ACH Operators: the Federal Reserve System, which clears approximately
80% of all ACH payments, Visanet ACH, New York ACH, and American ACH.
All disbursements occur through the operator
ACH Receiver ACH receivers are customers, employees, and other businesses that have authorized
electronic payments by Direct Deposit, Direct Payment, or Financial EDI to be
applied against their depository bank accounts.
ARC Accounts Receivable Entry — Convert a single check received by US mail or by
drop-box into an electronic Debit/Sale. Because you must obtain the ABA routing
number, account number, and check serial number from the check using a check
reader, you can submit ARC payments only from Payflow Pro and not from PayPal
Manager. See “Summary of ARC Requirements” on page 18 for other requirements.
Automated Clearing
House Network (ACH)
The ACH Network is a nationwide, wholesale electronic payment and collection
system used by hundreds of thousands businesses and financial institutions. The ACH
Network transfers payments and related data through computer and high-speed
communications technology.
Banking Day Days upon which banking institutions are officially open for business. Typically
Monday through Friday, excluding holidays.
CCD Cash Concentration or Disbursement payment. The payment method supported by
Business-to-Business format accounts.
CCD can be either a credit or debit transfer where funds are either distributed or
consolidated between corporate entities.
A CCD payment can be either standalone or recurring.
Credit A Credit payment transfers funds from your (the merchant’s) bank account into the
customers bank account. A Credit requires the Original Payment ID of an earlier
Debit/Sale payment, and the submitted Amount must be empty or the exact amount of
the original Debit/Sale payment.
Credit payments are not retried.
Debit/Sale A Debit/Sale payment transfers funds from the customers bank account into your
(the merchant’s) bank account.
Demand Deposit
Account (DDA)
Generic term for Checking or Savings bank account.
Depository Account See Demand Deposit Account.
EDI Computer-to-computer transmission of a payment and related information in a
standard format.