Posted on Jan 20, 2020


So, what is an ACH?

The ACH is a network that connects banks and financial institutions, and this allows businesses to use their bank account information to process payments. It also refers to the entire process used to move money electronically from one bank account to another.

What makes the ACH handy is that individuals can now use the information associated with their bank accounts to manage payments. Through the ACH, they can pay bills through the company’s website by only providing their account and routing number. The ACH can also be used to post a credit to an account such as a direct deposit for payroll.

For businesses, having an ACH merchant account allows them to withdraw payments from their customers’ bank accounts directly as long as it is authorized by the customer. The authorization can be done either by a signed contract, the customer’s acceptance of a company website’s “Terms and Conditions,” or a documented proof of authorization such as a recorded voice conversation.

What needs to be remembered is that a transaction is an ACH whenever it requires you to provide the bank account and routing numbers to do so.
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