ACH payments are electronic payments made through the Automated Clearing House (ACH) Network. Using ACH payments can help reduce errors, speed things up, and save resources.
ACH is one of the groups of processing institutions that have networked together to exchange electronic transactions. According to Computer world magazine, the ACH is a secure, private electronic payment transfer system that connects all U.S. financial institutions. Direct paycheck deposits and debit card purchases are two examples of electronic fund transfers that go through this network.
Implementing ACH payments is cheaper and faster than processing paper checks, both business-to- business and business-to-consumer. With ACH payments, it’s easier to keep track of finances. Instead of generic check information on a bank statement, you see the other party’s name if you’ve used an ACH payment. Then it’s easier to categorize the transaction with your financial software.Request More Information