ABA (American Bankers Association) Routing Number
Also known as a routing and transit number, this nine-digit code identifies a financial institution in the United States. It is used to direct electronic ACH deposits and other transactions to the appropriate bank.
ACH (Automated Clearing House)
The ACH system is a secure, nationwide network that facilitates the electronic transfer of funds between banks. Operated by the Federal Reserve or other clearing entities, it supports both credit and debit transfers, including payroll deposits, vendor payments, and direct debits.
ACH Network
A central distribution and settlement platform where financial institutions exchange electronic payment items. The network processes high volumes of transactions in batches, ensuring funds are moved between bank accounts efficiently.
ACH Operator
A central clearing facility—either a Federal Reserve Bank or a private sector provider—responsible for receiving, processing, and distributing ACH entries. ACH Operators act as intermediaries between originating and receiving banks to settle transactions.
Authorized / Pending Capture
These transactions have been approved by the payment processor or financial institution but are not yet finalized. The authorization confirms availability of funds, but settlement will only occur once the merchant performs a capture action. Until then, the transaction remains in an unsettled (pending) state.
Bank Account Number
A unique number assigned to a specific bank account. This number must be provided for any eCheck transaction—whether for payment or refund—to identify the source or destination of the funds.
Bank Account Type
This indicates whether the customer’s bank account is a checking or savings account. The correct designation is essential for the successful processing of eCheck transactions.
Banking Business Day
A Banking Business Day is any day that a financial institution is open to the public for conducting the majority of its banking operations. It excludes legal public holidays and weekends.
Batch Processing
A method of processing in which related transactions are grouped together and transmitted to a system or application for handling at the same time. Commonly used in ACH and financial systems to increase processing efficiency.
Check Verification (Forte Validate Solutions)
A fraud-prevention service that allows merchants to validate checks by accessing a national database of bad-check activity. It helps determine if a consumer has a history of returned or fraudulent checks but does not guarantee payment.
eCheck
An electronic check—or eCheck—is the digital equivalent of a paper check. It allows businesses and consumers to transfer funds electronically by authorizing withdrawals directly from a bank account.
Electronic Banking
A system of conducting financial transactions via electronic means—such as the internet or mobile apps—rather than using physical instruments like cash, checks, or paper documents.
Electronic Funds Transfer (EFT)
A broad term for any transfer of funds between bank accounts completed electronically. EFT includes ACH payments, wire transfers, and card-based transactions.
FDIC (Federal Deposit Insurance Corporation)
An independent U.S. government agency that protects depositors by insuring deposits in banks and savings institutions up to a specified limit.
Magnetic Ink Character Recognition (MICR)
MICR refers to the technology used to print the numbers at the bottom of checks—including the routing number, account number, and check number. These characters are printed with magnetic ink and read by special machines for automated processing.
Originator
The financial institution or business entity that initiates a payment—such as a wire transfer or ACH transaction. The originator sends instructions to debit or credit a receiver’s account.