ACH Payment Processing: What It Is & How It Works?

ACH payment processing is a type of electronic funds transfer (EFT) that allows businesses to send and receive payments via the ACH network. This type of payment processing can be used for a variety of purposes, including payroll, invoicing, and bill pay.

ACH payments are processed through the ACH network, which is a nationwide electronic network that handles transactions between financial institutions. The ACH network is overseen by the National Automated Clearing House Association (NACHA), which sets the rules and regulations for how ACH payments are processed.

When a business initiates an ACH payment, the payment is sent to the ACH network where it is routed to the receiving financial institution. The payment is then processed through the ACH network and deposited into the recipient's account.

ACH payments are typically processed within one to two business days, but they can take longer if there are any errors or delays in the ACH network.

There are a few things to keep in mind when using ACH payment processing:

• Make sure you have the recipient's bank account information (routing number and account number) before initiating the payment.

• Be aware that ACH payments can take one to two business days to process, so don't expect the money to be available immediately.

• If there are any errors with the payment, it can take longer to process.

• There may be fees associated with ACH payment processing, so check with your financial institution before initiating a payment.

ACH payment processing is a convenient and efficient way to send and receive payments electronically. When using ACH payment processing, it's important to keep in mind that payments can take one to two business days to process and there may be fees associated with the service.

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