ACH payment processing electronically debits funds for a purchase from a customer's bank account and credits the funds to the merchant's bank account.
The Automated Clearing House (ACH) is a computer-based paying service that enables the purchaser to pay a business through directly debiting their checking or savings accounts. This type of payment is most commonly used to pay online bills, mortgage and loan repayment, and direct deposit of payroll. Merchants benefit from this because they are fast and easy. There is no longer a need for forwarding checks to the bank to wait for processing. Consumers benefit from this because, in the same vein, they no longer need to write checks and send them and have them potentially lost in the mail. It does not require them to have a credit card or have good credit history. They also get to keep better track of their finances.
ACH processing is an electronic payment network used by individuals, businesses, financial and government organizations. ACH payment possessing can process large volumes of both credit and debit transactions which are originated in batches.
Note: In terms of security, the ACH network is governed by the National Automated Clearing House Associate (NACHA), which promotes the development of electronic payments, while developing and providing initiatives for risk management - because this is the same network federal banks and government institutions use, this system is highly-reliable and secure.
