7. Bob authorizes ACH payments
Step 1
Step 2 Step 5
Mortgage
Lender
ML’s Bank
Bob
Bob’s BankACH Operator
Step 3 Step 4
Payment
Details
Bank checks for
sufficient funds
ACH Entry ACH Entry
8. If Bob’s account has sufficient
funds, his bank will debit his
account, starting the information
to flow the other way.
9. ML updates Bob’s account
Step 10
Step 9 Step 6
Mortgage
Lender
ML’s Bank
Bob
Bob’s BankACH Operator
Step 8 Step 7
Account
credit
Bob’s
account is
debited
Bank debits
ACH operator
ACH operator
debits bank
11. ML updates Bob’s account
Mortgage
Lender
ML’s Bank
Bob
Bob’s BankACH Operator
Account
credit
Bob’s
account is
debited
Bank debits
ACH operator
ACH operator
debits bank
Bob authorizes ACH payments
Bank checks for
sufficient funds
Payment
Details
ACH EntryACH Entry