What is ACH?

2204277278 cbf43f4146 b

ACH eCheck Processing

Organizations that accept future billing, such as premium account services, frequently employ “eCheck payment gateways” because they provide a practical and affordable solution to handle these kinds of transactions. Also, as eChecks generally have lower processing costs than “Credit card payments” accepting them is often cheaper for enterprises.

After pay with an one more, you give the retailer or cable company your checking account and network protocols along with the payment amount. After sending this details to their bank, the business or service provider next submits the transaction to the “ACH eCheck Processing network.” The money is then sent from your financial institution to the dealer’s or solution provider’s checking account through the ACH network.

It usually takes 3-5 business days for the money to clear and the transaction to be complete, however the processing time for eChecks may vary. It’s important to make sure you have enough money in your bank account to cover the payment when it is finished, even if refused eChecks could result in fees and penalties.

An online merchant account is a business with an internet presence that accepts payments electronically.

If any business has an online merchant account they will need to have a system in place that will process various credit or debit card payments as well as online bank transfers.

This is a common account that accepts the payment from the customer and passes it on to the merchant’s bank account. This system is referred to as an Automated Clearing House.

An ACH is an institution that facilitates or assists in the transfer of funds from one financial institution to another. For instance, if you submit a check from another bank to your bank for payment, the check will go to the clearing house in the area.

This intermediary body will authorize the payment that will be transferred to your bank account. It cuts out the hassle of you having to go to the bank whose check you have to get your cash.

Similarly, an ACH assists online merchant accounts to receive payments from any payment processing service such as VISA or MasterCard, even various online banks.

An ACH acts as the link between his bank and the online merchant bank account, to facilitate the transfer of funds. Whenever a customer authorizes a payment through an online process, such as a credit card or any electronic means, the ACH ensures that the payment is validated and that the merchant will receive his payment in due course.

Many online merchants have chosen to use free online payment processors to cut on costs of setting up their own payment gateways. Though the process is free, the payment transactions still have to go through the ACH in order for the merchant to receive his payment.

This is a very secure way of transacting online and is catching on very fast. In fact, accepting payments online is as easy as accepting cash over the counter, only this way the merchant does not have to go to the bank to deposit the money, the ACH does it for him.