What is ACH Payments?
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What is ACH Payments?

Question by kumaran: What is ACH Payments?
ACH payment is one of the latest payment transaction.
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Best answer:

Answer by SumDude
ACH = Automated Clearing House, where banks trade checks and settle up the debts and transfers of their customers. Used to be with the real paper checks people wrote, but now more electronic. The credit card company just makes an electronic image of your check*, and your bank (through the ACH) gives the money (as an electronic credit) to the cc company, and deducts the balance from your checking account; and your bill to the cc company is settled (paid).

* or totally electronic debits and credits if you pay on line.

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Comment (1)

  • Nashvegas - January 25, 2014

    ACH payments are electronic payments made through the Automated Clearing House (ACH) Network. Using ACH payments can help reduce errors, speed things up, and save resources. Because they’re electronic, ACH payments use fewer resources (paper, ink, fuel to transport checks, etc). In addition, ACH payments make it easier to keep track of finances. Instead of generic check information on a bank statement, you see the other party’s name if you’ve used an ACH payment. Then it’s easier to categorize the transaction with your financial software.
    ACH payments can be electronic from start-to-finish, or they can happen when a paper check is converted and processed electronically.