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.

Difference between ach credit and debit