Automated Clearing House (ACH) processing is an electronic payment system that allows individuals and businesses to transfer funds between bank accounts. It is a secure, reliable, and cost-effective way to move money. ACH transactions are processed in batches and can be used for a variety of payment types, including direct deposit, payroll, vendor payments, and consumer bill payments.
ACH processing works by electronically transferring funds between bank accounts. The process begins when the sender initiates a transaction through their bank or payment processor. The transaction is then sent to the ACH network, which verifies the sender's account information and the availability of funds. If the transaction is approved, the funds are transferred to the receiver's bank account. The entire process typically takes 1-2 business days to complete.
There are several benefits to using ACH processing, including:
ACH processing can be used for a variety of payment types, including: