ACH Originator

Definition

A business or individual that initiates ACH (Automated Clearing House) transactions to move funds electronically, such as a CPA firm collecting client payments via direct bank debit. Originators are directly subject to NACHA operating rules and bear responsibility for ensuring proper authorization, fraud detection, and recordkeeping. Many CPA firms do not realize they qualify as originators when using third-party billing tools like CPACharge or Stripe.