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ACH (Automated Clearing House) Payment Processing, ACH Payment Processing from Transact24

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

Contact Us

Getting started with ACH Processing from Transact24 is simple. Just drop us a line using our contact form and we’ll be in touch.


ACH Processing FAQ

ACH (Automated Clearing House) processing is a means of electronic payment method that allows for funds to be transferred between savings and checking accounts. The ACH network processed $4.7 billion transaction in Q1 of 2015. Hundreds of thousands of companies process all manner of payments, including direct deposit payroll, insurance premiums, Federal government social security payments, loans, mortgages and utility bills via the ACH Network. The ACH network has been around for over 40 years and has proven in this time to be an extremely reliable, safe, secure and private payment processing network. It was initially setup as a more convenient and cost-saving alternative to paper-based checks.
ACH processing works similarly to electronic checks (eChecks) however, where they differ is that an ACH payment transfers funds from one bank account to another, via debit or credit, which can be setup for recurrent billing, whereas an eCheck is limited to a one-time electronic payment method.
ACH processing is ideal for corporate companies that need recurring payments, such as monthly billing, memberships and other subscriptions. This makes it particularly beneficial as a payment method for numerous sectors, particularly healthcare, the public sector, financial institutions, utility providers and property management companies.
Yes, Transact24’s ACH processing solution supports WEB, PPD and TEL initiated transaction.
The period related to the settlement of funds is dictated by the various banks T24 has partnered with.
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