An ACH Payment is, by definition, an electronic payment made through the Automated Clearing House (ACH) Network. This form of payment electronically transfers funds from one account to another. Using your bank information, ACH payments transfer funds either into or out of your account. ACH payments have become prevalent in several different areas of modern life. For example:
- Employers today often prefer an electronic deposit rather than a paper check for employee paychecks. This is an ACH payment.
- Many Americans have transitioned over to electronic bill pay. If you authorize these bills to be paid directly from your account (rather than using a credit card) this is another form of ACH payments.
- In addition to paying bills online many Americans make online monthly loan repayments such as mortgage or car loans. Yet another example of ACH payments in modern, daily life.
ACH payments have gained popularity because of all the benefits they offer consumers and businesses.  Here are just a few of those benefits.
- ACH payments save resources. Since they are electronic, they don’t require paper and ink to write a check, and they don’t require any postage or fuel costs for transportation from the customer to the business.
- Since ACH payments are electronic they are much faster than physical payments such as checks. As an electronic payment, there is no need to travel to the bank and wait for the check to be processed. The ACH payment has all the necessary information to provide an immediate transfer from one account to the other.
- Unlike credit cards, ACH payments provide real time authorization for payments and fund transfers. So, you know immediately if the payment amount has been approved.
ACH payments have gained popularity for many reasons. In today’s fast paced society, we want our money to be able to keep up with us. ACH provides convenience and speed for your funds.
[Is your business ready for ACH payments? Ask a leader in ACH processing for more information on how to make it a reality. It’s easier than you think.]