ACH: Automated Clearing House
The ACH Network is one of the biggest players used for US commerce. ACH transactions are responsible for moving money from one bank account to another, including transactions such as Direct Deposit, Direct Payment, and credit and debit dealings. The ACH network enables innovation for all participants – it handles both one-time and recurring payments, and is active in all spheres of commerce, including B2C, B2B, government, and international personal payments.
Together, this equals roughly 24 billion electronic financial transactions completed every year, totaling more than $41 trillion handled via ACH payment processing. These numbers solidify the international standing of the ACH Network as one of the largest, most secure, and most dependable payment systems available today.
Top ACH Facts:
- The ACH Network utilizes batch processing: Financial institutions accumulate large volumes of ACH transactions throughout the day, and later, these “batches” are processed altogether.
- ACH transactions are electronic: Unlike paper checks, all ACH Network transactions are electronically transmitted. Less resources used (i.e. paper, ink, fuel, labor) means cheaper costs and faster processing times.
- ACH Network handles 2 types of transactions: Direct Deposits and Direct Payments.
- ACH Direct Deposit: Direct deposit can include employee expense compensation, payroll funds, credit payments from a business to consumer, government benefits, taxes, and refunds, as well as any annuities or interest payments.
- ACH Direct Payment: Direct payments can be used by both individuals and organizations in order to make either an ACH credit or ACH debit payment.
- ●ACH Credit Payment: An ACH direct credit payment “pushes” funds into a particular account, i.e. when a customer initiates a bill payment through his or her financial institution.
- ●ACH Debit Payment: An ACH direct debit payment “pulls” funds from an account, i.e. when a customer sets up a recurring weekly/monthly/annual payment for a bill (such as a car payment, mortgage, or utilities) and his or her account is debited automatically each bill cycle.
- ACH transactions are quickly processed: Completion of a transaction (i.e. “settlement” or the transfer of funds from one financial institution to another), typically happens next-day.
- Same-day transactions: While NACHA Operating Rules requires ACH credits to be settled in 1-2 business days and ACH debits settled next-day, new developments now enable “same-day settlement” of nearly all ACH transactions.
Find out more about Transact24’s ACH payment processing solution
If you want to find out more about Transact24’s ACH payment processing solution, and how your business can start enjoying the many ACH processing benefits, please visit our ACH statistics page, or directly get in contact with us for more information.
You can do so by email or via the form provided on the contact us section of our website. Once we receive your request for more information one of our ACH sales representatives will be in contact with you within 24-48 hours.
Getting started with ACH Processing from Transact24 is simple. Just drop us a line using our contact form and we’ll be in touch to get the ball rolling