In addition to the Automated Clearing House network, two additional entities are involved in ACH payments: the Originating Depository Financial Institution (ODFI) - the financial institution initiating the transaction, and the Receiving Depository Financial Institution (RDFI) - the financial institution receiving the ACH transaction. ACH credit transactions - money “pushed” to accounts at different banks from accounts you own.ACH debit transactions - money that's “pulled” from an account, such as a recurring bill payment that allows the company you're paying to withdraw from your account.It costs less to process an ACH transfer than a credit card transaction, helping small businesses save money. They've become popular in recent years because they're fast and reliable, which helps streamline accounting for both sender and receiver. Many electronic payment apps and platforms like PayPal and Venmo use the ACH network.ĪCH payments differ from more traditional payment options, particularly in how they use routing numbers. Any bill you pay electronically (instead of with a credit card) or any salary you receive via direct deposit is done using an ACH payment. Regulated by the federal government, the network provides security and confidence in the payments while helping make the banking system fast, efficient and secure.Ĭhances are you're already using ACH payments, even if you're unfamiliar with the jargon. In recent years, technology has provided entrepreneurs with a convenient, inexpensive, secure and now popular way to transact business: the ability to send and receive payments electronically.ĪCH stands for Automated Clearing House, the financial network in the United States responsible for overseeing and managing ACH deposits. Cash has always been one of the common methods of payment, and it still is, but there's no denying that credit card transactions have transformed the financial landscape. Technology has changed the ways we do business, including how we pay for goods and services.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |