Here’s what you need to know: ACH payments vs. While these electronic transactions appear similar on the surface, they are actually processed in very different ways. How are ACH payments different from eChecks, debit card transactions, and wire transfers? Just as with paper checks, ACH transactions can’t go through unless there is enough money in the payer’s account. The only hiccup you may encounter with ACH payments are “bounced” transfers, due to insufficient funds in your customer’s account. While you previously had to wait anywhere from 3-5 days to receive an ACH payment, new rules are being introduced to allow for same-day processing. Once an ACH transfer has been authorized, your bank account will electronically pull the agreed-upon payment from your customer’s bank account. The nice thing about ACH is that customers can agree to set up a one-time payment, a recurring payment, or even a series of payments on specific dates. Just as they would sign a paper check or a credit card receipt, they have to sign an ACH authorization form (or verbally agree to it during a recorded phone call). Here’s what happens during the ACH payment process: Initiating the ACH paymentĪ customer first has to give you their OK to initiate an ACH transfer. Learn more about ACH and what does ACH stand for. ACH transactions are an easy, modern alternative to cash, paper checks, and even credit or debit card payments. Think of ACH as an electronic version of the paper checkbook, but with several unique advantages. ACH is specific to bank account transfers. For example, credit and debit card payments are electronic, but that doesn’t make them ACH transactions. And while they are electronic payments, it’s important to understand that not all electronic payments are ACH payments. However, ACH transactions are not the same as debit card payments, eChecks, or wire transfers (we’ll explain why next). When a customer pays you through ACH, that electronic funds transfer (EFT) will show up in your bank account as a direct deposit or direct payment. These funds travel through the ACH (Automated Clearing House) network, which connects thousands of financial institutions across the nation.ĪCH is a fast, secure, and cost-effective way to transfer funds between bank accounts. Think of an ACH transaction as the electronic flow of funds from one bank account to another. Here’s a quick guide to what ACH payments are, what they aren’t, and why you might want to add ACH transactions as a payment option for your business. While credit cards, debit cards, and checks are a great mix to provide for your customers, ACH payments give you even more flexibility and potential to increase profits. ACH transactions are a form of electronic payments that go through the Automated Clearing House (ACH) Network.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |