Glossary of Terms

Automated Clearing House or ACH - A payment system that allows electronic transfer of funds between participating financial institutions

Business Day - a day on which a system participant is operating to process transactions.

Central Bank - shall mean the Eastern Caribbean Central Bank (ECCB), which is the primary regulatory body for all financial institutions that are members to the Eastern Caribbean Currency Union (ECCU), as established by the Eastern Caribbean Central Bank Agreement 1983.

Collateral - an asset or financial commitment that is provided by a collateralprovider to a collateral taker and accepted by the taker to secure an obligation of the collateral provider.

DFI - (Depository Financial Institution) – a system participant (banks only) that receives or sends transactions on behalf of originators and receivers.

Direct Credit - a payment instruction initiated by an originator for onward credit to a receiver, for a payroll credit, payment, or any transaction approved by the ECACH that allows a person to arrange a credit transaction in favour of another.

Direct Debit - a payment instruction of an amount agreed under a direct debit mandate, collected from a receiver’s account on advance notice by an originating participant on request, under a standard contract.

ECACH - Eastern Caribbean Automated Clearing Houseas established by the Central Bank pursuant to Article 36 of the Eastern Caribbean Central Bank Agreement 1983 for clearing cheques and retail electronic transactions that connects all financial institutions (banks only at this time)within the Eastern Caribbean Currency Union (ECCU).

ECACH Operator or Operator - the central clearing facility that receives Entries from the Originating Depository Financial Institutions and distributes the Entries to the appropriate Receiving Depository Financial Institutions.

ECCB - Eastern Caribbean Central Bank

ECCU - Eastern Caribbean Currency Union (Anguilla, Antigua & Barbuda, Dominica, Grenada, Montserrat, St. Kitts & Nevis, St. Lucia and St. Vincent & the Grenadines)

Electronic Funds Transfer or EFT - funds transfer by electronic means, and includes the use of computer-telecommunications systems

Effective Entry Date - the date placed on an ACH transaction by the Originator of the transaction. The date on which the funds transfer is intended to take place.

End of Day - the time at which the processes, which take place to conclude the business day, are carried out for the ECACH system.

FI - Financial institution

Funds Transfer System - shall mean a formal arrangement, based on private contract or statute law among ECACH participants, with common rules and standardized arrangements for the transmission andsettlement of monetary obligations arising among the participants

GO Live - Official Launch Date

NACHA - (National Automated Clearinghouse Association) - the file standard used in ACH.

NACHA Standards - the standards and requirements, as published by the NACHAfrom time to time, for the organisation and exchange of financial data between an originatingparticipant and a receiving participant.

Originator - an entity or corporation that has been authorized by a Receiver to initiate ACH Entries into the payment system for further processing by an originating participant in a funds transfer system.

Originating Depository Financial Institution, ODFI,  or Originating Participant - a system participant (financial institution) with which the Originator has a contractual relationship for ACH services and is responsible for sending ACH Entries into the ECACH Network on the Originator’s behalf

Payment Instruction - any instrument enabling the customer to transfer funds

Prearranged Payments and Deposits or PPDs - a credit (Direct Credit) or debit (Direct Debit) Entry that represents either single or recurring payments, as facilitated by the ECACH.

Receiver - a person/entity that has authorized an originator to initiate an item to the receiver’s account.

Receiving Depository Financial Institution RDFI or Receiving Participant - a system participant (financial institution) that receives a transaction from anoriginating participant for furtherance to a Receiver.

Routing Number - a numeric identifier that consists of a system participant’s uniqueidentification number and branch number.

Settlement Date - the calendar date on which funds emanating from an ACH Entry actually change hands.

Further Information

How To Apply

Frequently Asked Questions

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