What is ACH payment?

What is ACH payment?

ACH payments are electronic payments bank-to-bank that go through the ACH network (automated clearing house). Funds move from one bank to another with the help of a centralized system that directs funds to their destination. It is run by the National Automated Clearing House Association (NACHA). It may support both credit transfers and direct debits. The system is designed to process batches of payments containing numerous transactions and typically charges fees for usage to the Business or vendor receiving ACH payments. With Automated Clearing House, funds are electronically deposited in financial institutions, and payments are made online. In addition, ACH is free at Online Check Writer.

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