Ensure a Safe and Reliable ACH Network
Valued ACH Network Participants
Better Payments for Better Business
Third-Party Senders play an important and valuable role in helping businesses and other organizations benefit from originating ACH payments for services such as paying employees, bills or vendors with ACH credit payments; or collecting rent, homeowners’ association (HOA) dues, tuition or other payments with ACH debits.
About Third-Party Senders
A Third-Party Sender serves as an intermediary between the company originating the ACH payment and the Originating Depository Financial Institution (ODFI) of that transaction. A key point that differentiates a Third-Party Sender from other third parties is that it sends the payment on behalf of its client through its own financial institution as opposed to the financial institution of the client, or Originator – this means that the Third-Party Sender is the customer of the ODFI and the ODFI does not have a direct business relationship with the Originator of the transaction.
When a Third-Party Sender is sending payments through its ODFI on behalf of another Third-Party Sender, that ODFI has the ultimate responsibility for those payments. For that reason, it is important that a financial institution knows that customer and whether it is a Third-Party Sender.
Properly identifying Third-Party Senders helps to carefully balance continued innovation and business opportunities with sound risk management – to benefit all ACH stakeholders.
- The Third-Party Sender Identification Tool helps financial institutions and their ACH customers understand their roles when an intermediary is involved in some aspect of ACH payment processing by asking a series questions that can help to identify whether a business is a Third-Party Sender.
- "What is a Third-Party Sender?" Video brings high-level awareness regarding the importance and value that Third-Party Senders bring to the payments ecosystem and why properly identifying them helps to ensure a safe and reliable ACH network for all payment systems stakeholders while also continuing to allow for innovation in payments processing.
- Simplified Scenarios of Third-Party Senders offers a few Third-Party Senders examples involving payroll and tuition processing, HOA dues and property management for vacation rentals.
- Third-Party Sender Registration provides Rule information and details for ODFIs to register their Third-Party Sender customers.
- Third-Party Sender ACH Operations Bulletin includes additional guidance and definition regarding Third-Party Senders and Other Payment Intermediaries.
Additional Third-Party Sender resources and education can be found on the NACHA eStore or by contacting a Regional Payments Association. Financial institutions are encouraged to obtain their own legal counsel regarding their obligations under the NACHA Operating Rules and other applicable legal requirements.