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You've probably heard of ACH payments before, but you may not know exactly what they are or how they can benefit your business.
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Everything You Want to Know About-Best ACH Payment Processing! You've probably heard of ACH payments before, but you may not know exactly what they are or how they can benefit your business. ACH stands for Automated Clearing House, and it's a network that processes electronic payments and transfers.
ACH payments are becoming increasingly popular because they're fast, convenient, and secure. Plus, they can save you money on transaction fees. In this article, we'll give you an overview of ACH payment processing and how it can benefit your business.
What is ACH Payment Processing? ACH payment processing is a way to accept and process electronic payments. With ACH processing, funds are transferred directly from the payer's bank account to the payee's bank account. This eliminates the need for paper checks or money orders and can speed up the payment process. ACH payments are processed through the ACH network, which is managed by the Federal Reserve. The ACH network handles billions of transactions each year, making it one of the largest electronic payment systems in the world.
How Does ACH Payment Processing Work? There are two types of ACH payments: direct deposit and direct payment. Direct deposit is the most common type of ACH payment. With direct deposit, your customers can authorize their bank to send payments directly to your account. This is the same process that's used for payroll direct deposit.
Direct payment is less common, but it can be used for one-time payments, such as utility bills or court fines. With direct payment, the payer's bank sends a paper check or electronic funds transfer to the payee's bank. The payee's bank then initiates an ACH transfer to credited the payee's account.
