An RDFI, or Receiving Depository Financial Institution, is the bank or credit union that holds the receiver's account in an ACH payment. For a credit such as direct deposit, it puts the money in the account. For a debit such as a bill payment, it takes the money out. When it can't complete a payment, for example because the account is closed, it sends a return. The RDFI also handles its customer's claims. Under Regulation E, a consumer can report an error to their bank up to 60 days after the statement showing it.
What is an RDFI?
RDFI stands for Receiving Depository Financial Institution. It's the bank on the receiving end of an ACH payment. Its customer is the Receiver.
Nacha's two examples show both directions. In direct deposit, the ACH Operator sends a file to the employee's bank telling it to credit the account on payday. That bank is the RDFI and the employee is the Receiver. In a bill payment, the Operator sends the utility's payment instruction to the customer's bank, which withdraws the funds. Again that bank is the RDFI. When a business debits a customer's account, the customer's bank is the RDFI.
What does an RDFI do?
- Posts payments. It credits or debits the Receiver's account.
- Returns payments. If it can't complete a payment, it sends a return back to the ODFI with a reason code. See ACH return codes.
- Sends corrections. If a detail like the account number needs updating, it can send a notification of change.
- Answers account checks. It responds to prenotes and handles micro-deposits sent to verify an account.
When must an RDFI make ACH credits available?
Nacha's funds availability rules set the deadlines, in the RDFI's local time:
| Credit | Available for withdrawal by |
|---|---|
| Standard credit received by 5:00 p.m. the day before | 9:00 a.m. on the settlement date |
| Standard credit received later | End of the settlement date |
| Same Day ACH, first window | 1:30 p.m. |
| Same Day ACH, second window | 5:00 p.m. |
| Same Day ACH, third window | End of its processing day |
An RDFI can make funds available sooner. Nacha notes some banks advance payroll before settlement, which is why direct deposits sometimes show early.
What does the RDFI do when a customer disputes a debit?
The dispute starts with the customer and their bank. The RDFI can take the customer's Written Statement of Unauthorized Debit in writing, electronically or orally. It can ask the ODFI for proof of authorization.
For a consumer account, Regulation E sets the bank's error rules at 12 CFR 1005.11:
- The bank must handle an error notice received no later than 60 days after it sends the statement that first shows the error.
- It must decide whether an error occurred within 10 business days.
- If it needs more time, it may take up to 45 days, as long as it provisionally credits the account within 10 business days.
On Stripe, a consumer can dispute an ACH debit for up to 60 calendar days and a business account for up to two business days. Stripe says these disputes are final and can't be contested through the ACH network. See ACH dispute.
Does the RDFI get paid for Same Day ACH?
Yes. Under Nacha's rules, the ODFI pays the RDFI a Same Day Entry Fee of 5.2 cents for each Same Day ACH payment. The fee is meant to cover the receiving banks' costs of supporting same-day processing.
What's the difference between an RDFI and an ODFI?
The ODFI is the bank of whoever starts the payment. The RDFI is the bank of whoever's account is credited or debited. On a payment plan collected by ACH debit, your bank (or your processor's) is the ODFI and your customer's bank is the RDFI.
General information, not legal advice.
- Nacha: How ACH payments work
- Nacha: Providing faster funds availability
- Nacha: Expanding Same Day ACH
- Nacha: Meaningful modernization
- Nacha: Same Day ACH, moving payments faster (Phase 1)
- CFPB: Regulation E, 12 CFR 1005.11, Procedures for resolving errors
- Stripe: ACH Direct Debit
Every figure on this page was checked against these sources on Oct 6, 2026. General information, not legal or tax advice.