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ACH Solution

What is the RocketKOR ACH Solution?

The RocketKOR ACH solution allows you to move money between bank accounts using the Automated Clearing House (ACH) financial network.

The ACH network is a secure network used for moving funds between financial institutions in the U.S. Common uses of ACH include:

  • An individual moving funds from one bank account to another
  • An employer depositing money to an employee’s bank account
  • A business paying a supplier for products or services
  • A taxpayer sending funds to the IRS

What Can I Do with the ACH Solution?

The RocketKOR ACH solution allows you to move money between bank account Financial Accounts. This includes your Business Financial Accounts and Customer Financial Accounts.

The RocketKOR ACH solution supports same-day and next-day transactions when moving funds between bank accounts. You can create the following types of transactions:

  • Send  Move funds from one of your Financial Accounts to a Customer Financial Account or to another of your Financial Accounts.
  • Request  Request funds from a Customer Financial Account or one of your Financial Accounts.
  • Reversal  Reverse an ACH Send or Request transaction created on the RocketKOR platform.

The ACH solution provides the following functions, which you can perform using the ACH solution APIs or the RocketKOR Portal:

  • Create same-day or next-day ACH debit transactions
  • Create same-day or next-day ACH credit transactions
  • View ACH transactions
  • Edit ACH transactions
  • Reverse ACH transactions
  • Return ACH transactions (initiated by the RDFI)
  • Cancel ACH transactions

How Does the ACH Solution Work?

An ACH transaction is originated on RocketKOR using the ACH solution APIs or the RocketKOR Portal. RocketKOR then works with the Originating Depository Financial Institution (ODFI), ACH Processor, and Receiving Depository Financial Institution (RDFI) to complete the transaction.

The following diagram explains the role of each of these parties. It also shows the message flow for ACH transactions from and to the RocketKOR platform. Path A shows the flow for Send, Request, and Reversal transactions, and Path B shows the flow for Return transactions. A Return transaction is created by the RDFI if the RDFI rejects the transaction (for example, if the bank account does not exist or contains insufficient funds for the transaction).

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ACH Transaction Flow

Third-Party Originator (RocketKOR)

As the Third-Party Originator, RocketKOR initiates the ACH transaction on behalf of the Business Account that requested the transaction. When an ACH Send, Request, or Reversal transaction is initiated on the RocketKOR platform (via the APIs or the Portal), RocketKOR sends a transaction request to the ODFI.

Originating Depository Financial Institution (ODFI)

The ODFI creates an entry for the transaction on the ACH network on behalf of the Originator (RocketKOR). The ODFI sends these ACH entries to the ACH Processor.

ACH Processor

The ACH Processor (either the Federal Reserve or The Clearing House) sorts the ACH entries and sends them to the appropriate RDFI.

Receiving Depository Financial Institution (RDFI)

The RDFI receives the ACH entries and then either debits or credits the counterparty’s account. The counterparty is the other party that is participating in the ACH transaction by either sending or receiving funds.