Processing transactions through this financial conduit can add value to your business.
The Federal Reserve Bank’s Automated Clearing House (ACH) is the country’s mainframe for financial transactions. Instead of handling paper-based transactions like checks, the ACH network moves money electronically using bank account numbers and routing numbers, resulting in faster processing time, cost savings and more efficient record-keeping. Governments, banks, businesses and consumers rely on the ACH—one of the largest and most secure payment service hubs in the world.
The National ACH Association (NACHA), its governing body, reports that the ACH moves 25 billion financial transactions, adding up to $43 trillion, each year. They fall into two main categories:
Unlike the real-time processing of wire transfers, which come with a steep fee and don’t require a liaison to settle funds, ACH transactions are processed in batches. Settlement occurs within one to several business days depending on the size and type of transaction. Since the ACH doesn’t perform real-time authorization of funds like credit card networks, businesses that accept ACH payments employ a service called Instant Account Verification (IAV). IAV analyzes the buyer’s bank information to ensure an account is real before accepting a payment.
Accurate, user-friendly, safe and economical, the ACH is a dependable resource that can benefit any business, especially if it needs to accommodate recurring billing schedules. With a merchant account from BankCard USA, your business has the flexibility to accept all forms of electronic payment, including ACH transactions.