---
title: Participant roles
slug: concepts/payments/ach/participant-roles
description: An ACH payment involves multiple parties, including individuals and financial institutions, each playing a role in transferring funds.
docTags:
createdAt: 2025-03-24T07:46:22.802Z
---
## Understand ACH roles
An [ACH payment transaction](docId\:ILwmF5qnTMLo30D2H3rCH) can be complex, involving a number of individuals and financial institutions. The table below describes participants involved in a typical transfer of funds.
| Participant | Explanation |
| --------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Originator | The party - individual or company - that originates a [ credit, debit, or non-monetary entry](docId\:qQ3D8sBTuETGRtKaXTK1M) into the ACH payment system for receipt by the Receiver account.
The Originator must have an arrangement with the ODFI directly or through a third-party sender and an authorization from the Receiver to initiate the transaction. |
| Originating Depository Financial Institution (ODFI) | The financial institution that originates the payment and forwards it to the ACH Operator. |
| ACH Operator | Receives entries from ODFIs, sends the entries to appropriate RDFIs, and performs settlement functions for the financial institutions. Cross River works with the [Federal Reserve Bank (FedACH)](https://www.frbservices.org/financial-services/ach/index.html). |
| Receiving Depository Financial Institution (RDFI) | The financial institution that receives the credit or debit entry from the ODFI and posts it in the receiver account. |
| Receiver | The party (individual or company) that receives the debit or credit entry. |
| Third-Party Service Provider (optional) | Acts on behalf of the originator, ODFI, or RDFI regarding ACH entries and transactions. This includes creating ACH files for an originator or ODFI and acting as a sending or receiving point for an ODFI or RDFI.
A third-party sender acts on behalf of the originator when there is no agreement between the ODFI and originator for ACH origination services. A third-party sender is never the originator for entries it transmits on behalf of another organization. A third-party sender of entries may be an originator of other entries.
Cross River can act as the ODFI for outbound ACH transactions or the RDFI for inbound ACH transactions. |
:::hint{type="info"}
A Depository Financial Institution (DFI) can act as an RDFI without being an ODFI. If a DFI wants to originate ACH entries, it must act as both the ODFI and the RDFI. The ODFI must be able to receive payment returns.
:::
All parties in an ACH transaction must comply with [Nacha rules](docId\:qQ3D8sBTuETGRtKaXTK1M).