What Is ACH?
ACH stands for Automated Clearing House (ACH). It is governed by NACHA which issues rules and standards. If you can’t comply with Nacha, you can’t be part of the ACH network. What Is ACH Used For? ACH is a way to make payments to bank accounts regardless of which banks are involved. Many companies use ACH to deposit employee paychecks on a regular basis. Most people know this as direct deposit. Direct deposit, whether recurring, or one-time takes place via the ACH network. Consumers also use ACH to automatically pay bills or payments. In this case, the ACH takes money from the person’s account and deposits it in the company’s account. Although the viewpoint has changed, this is the same form of transaction. Using ACH this way is often known as automatic payment. Can ACH Be Used for One-Time Payments ACH can be used for one-time transactions. Many of these transactions originate on the internet. These transactions are referred to as WEB entries. Consumers may log in to financial institutions or bank accounts and make one-time payments or transfers. Examples include, paying some or all of the balance of a credit card account, making a mortgage payment manually, or even …