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An ACH transaction is a type of electronic funds transfer (EFT) that occurs between financial institutions.
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What Is ACH Transactions? A Complete Guide An ACH transaction is a type of electronic funds transfer (EFT) that occurs between financial institutions. The term ACH is used to describe both the network that processes the transactions and the actual transactions themselves.
ACH transactions are typically processed in batches, meaning that they are not processed individually like some other types of EFTs. This batch processing can take a few days, which is one reason why ACH transactions are not considered real-time. One of the most common types of ACH transactions is direct deposit, which is when an employer deposits an employee's paycheck into their bank account electronically. Other common types of ACH transactions include electronic bill payments and direct payment of federal and state taxes
While ACH transactions are considered to be safe and secure, there is always a risk of fraud when conducting any type of electronic transaction. It is important to take precautions to protect yourself from fraud, such as only conducting ACH transactions with trusted financial institutions and businesses. You should also never give out your bank account information to anyone who you do not know and trust.
If you suspect that you have been the victim of fraud, you should contact your bank or credit union immediately. You should also file a report with the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).
