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. Let’s cover the basics of ACH payments for businesses and consumers
Basics of ACH Payments
ACH payments are simply electronic transfers from one account to another. Common uses of ACH payments are:
- A customer pays a service provider
- An employer deposits money to an employee's account
- A consumer moves funds from one bank to another
- A business pays a supplier for products
ACH payments can be electronic from start-to-finish, or they can happen when a paper check is converted and processed electronically.
- To see how paper checks become electronic, read Overview of Electronic Checks
Why Businesses Like ACH Payments
Businesses benefit from ACH payments. There’s no need to wait for customers to write checks and have them lost in the mail. ACH payments are received more quickly and reliably, and there’s no need to forward checks to the bank and wait for processing.
- Learn more about how businesses use ACH: ACH Processing Basics
Why Consumers Like ACH Payments
Consumers also benefit from ACH payments. There’s no need to write checks and get them into the mail on time. If using automatic ACH payments, they do not need to keep an eye out for bills - everything runs on autopilot for better or worse.
- Learn more about how consumers use ACH: ACH Debit for Consumers