ACH Transfer - ACH Payment Processing Software

ACH Transfer is same as like check transfers we know. ACH Transfer like check processing, we can transfer money to our account and credit to other accounts from different locations of the world. Mainly this ACH processing software helps us to transfer bulk number of credit and debit transactions in batches wise from ACH network. This ACH transfer includes all types of transactions like direct deposit, payroll payment, vendor payments, etc.

ACH Transfer is also called as Electronic Fund Transfer (EFT). This Automated Clearing House (ACH) processing software is mainly used to transfer large amount of money and bulk number of transaction can be made, because its transfer in very simple and easy method. In this process the account holder of the bank initiate a fund transfer, and then sum of money is deducted from the originator of the transaction and transfer the fund to the destination account.

Both the government and the commercial sectors use ACH payments. Through the ACH Network, businesses, individuals, government organizations and financial institutions deposit, electronically pay, transfer, debit and conduct other financial transactions. The Electronic Payments Network is the only private sector ACH Operator in the United States. ACH Transfers may take longer period typically up to 3 days. But this is the most secured way to transfer funds.

ACH Processing Software Benefits:

1. Large Volume of Transactions
2. Easy and Affordable
3. It's a Pay Simple Method
4. Easy Processing of Checks

Bank Routing Number | ABA Routing Number

A Bank Routing Number is a 9 digits bank code used in the US. The number appears in the bottom of every negotiable instrument such as checks, drafts, etc. Any financial institution can be identified by the 9 digits number. This code helps for sorting, bundling and shipment of paper checks back to the drawer’s bank account. This number is used to facilitate the electronic routing of funds (ACH transfer) from one bank account to another.

Bank Routing Number is also used by the Federal Reserve Banks to process wire transfer and by the ACH payment processing to deposit directly to the merchants account. Bank Routing numbers depend on the type of transaction made. Every transaction has a unique routing number.

The easiest way to identify bank routing number is to open your checkbook and look at the bottom of the check, you can find at the right hand side of your account number it’s just 9 digits. You can easily set up direct deposit for your paycheck, or you set up an automatic payment plan for your monthly bills.

Routing Number verification is very important in the check processing. If you need to verify the validity of a bank routing number or you need routing number verification, lot of tools are available free of cost online. Every bank routing number used in the ACH system can be searched online. Most of the tools are totally free and it is updated every working day.

The Automated Clearing House (ACH) is an electronic payment delivery system which allows you to make payments or collect funds electronically through the ACH network. ACH payment processing online gives you better control over the timing of payments that post to your bank account(s). ACH transactions are usually next-day entries when exchanged with other financial institutions. ACH functions include direct deposits and check conversions from paper checks to electronic.

ACH Fraud Protection Tips

According to the latest cyber crime ACH fraud or Automated Clearing House fraud has been experienced by many banks. An ACH transaction is a payment processed via the ACH Network to transfer funds electronically between bank a/c’s using a batch file processing system. Generally it is used for direct deposit of payroll, social security payments and corporate use it for tax payments to IRS (Internal Revenue Service). All the Rules and regulations of the ACH transactions are governed by NACHA (National Automated Clearinghouse Association).

How ACH Fraud Occurs?
ACH fraud or Automated Clearing House fraud can occur quite easily. An individual may require few details to commit this type of fraud, i.e. your checking account number and your bank routing number. These details are utilized to initiate the fraud. He may use your bank account and routing numbers to make payments by making a phone call to the vendor or through web transactions.

ACH Fraud Protection
One of the easiest ways to get protect from ACH fraud is to install ACH Blocks or ACH Filters on your bank a/c. This type of service is provided by the Bank to its clients to monitor incoming ACH activity. By using this tool you can scrutinized all the transactions. Suspicious transactions are presented directly to you. You can also set restrictions for ACH payments which will control of what payments get authorized.

What can you do if you Detect an ACH Transaction Fraud?
If any ACH Fraud is detected in your bank a/c, then you need to notify your bank within 60 days whereas corporate a/c needs to notify the fraud within 2 days. If you report the fraud within the time frame, then you will not be responsible for the fraud. According to NACHA rules the originating bank must pay compensation to the victim and then try to recover the loss from it’s customer.

One of the best way to prevent ACH fraud is to review and reconciliate your bank statement regularly, whereas corporate accounts must be reviewed daily to avoid fraud.

ACH Payment Authorization Form

Automated Clearing House(ACH) payments are similar to automated credit card billing payment that is withdrawal directly from the checking customers account. To make an ACH payment you need to authorize the concern management company to debit ONLY the amount mentioned in the singed ACH payment authorization form. This is a cost effective, easy and secured process to ensure that the payments are made on the due date. This process is helpful for you, if you forgot to make a monthly payment on time. On receipt of your ACH authorization form the concern business required minimum of 10 days to activate the ACH debit from your account.

One Time ACH Payment Authorization Form Spec. Copy.

(Click in the Image To Enlarge)

Advantage of Automated Clearing House & ACH Payment

The Automated Clearing House (ACH) is an electronic network system that helps banks and other commercial institutions to clear electronic payments efficiently. The network operated by the rules and regulations developed by the National Automated Clearing House Association (NACHA). Below are few benefits and advantages of ACH processing:

Get Rid of Paper Checks for Routine Payments
An a/c holder of a bank has to clear his debts on monthly basis or on a specific period of time. Previously he had to issue checks for this proposal. This was tough for the customer as well as for the banker. For processing the paper checks it take lot of time. The a/c holder needs to pay some charges if he issue checks after the due date. Even the bank had to spend some money on petty expenses like postal charges, etc. With the invention of Automated Clearing House (ACH) you can make all the transaction online. All you need to do for the whole process is to send an authorization letter to the bank.

Encourages Financial Management and Facilitates Investment
Automated Clearing House (ACH) is one of the easiest ways to maintain proper financial management and control. If an a/c holder is not having the facilities of an Automated Clearing House he may not have any control over his spending. This system transfers your fund automatically on a specific date. As a result reserved funds are kept for your savings and investment.

Minimize Paperless Operations in Banks
Without Automated Clearing House (ACH) private and public sector banks need to maintain ledgers and other books of a/c to enter all the transaction made in the bank. The banks need to maintain many books of a/c and also need to audit them regularly. By the help of Automated Clearing House (ACH) banks are relieved from all these formalities. This ACH process saves time and money but also error free transactions are made.

Is ACH Right for You?
This option can be selected only if you need to keep some fund reserved for saving or investment for any other purpose. If the fund is not available in you’re a/c during the due date the bankers will impose fine as a penalty. Consequently if you are not sure that you can maintain the fund during the due date, in such case you will need to select the traditional payment method to make sure that you are not at a loss.

What is Automated Clearing House (ACH) | ACH Network | ACH Software

The Automated Clearing House (ACH) is an electronic network which facilitates electronic fund transfers in between various nationalized banks within the United States of America. Rules and regulations of the ACH network is governed by NACHA (National Automated Clearinghouse Association). The network system is extremely efficient and reliable. ACH Software processes bulk quantity of debit and credit transactions in one set.

The ACH network system allows funds electronically debited or credited to a business or personal deposit account. Presently these deposit accounts include checking and savings accounts. During September 2000, ACH credit transactions can be deliver to loan a/c’s and ACH Dr and Cr transactions to Companies general ledger accounts. Automated Clearing House transactions import simple basic information such as the person name (excluding Point-of-Purchase transactions), financial institutes routing number, a/c number, price and the actual date of the transaction. Additional payment information is known as addenda records. The addenda possibly include payment-related details including shipping information or invoice number.

How does Automated Clearing House (ACH) Work?

1. An organization or a person (Receiver) appoints an organization or a person (Originator) to start a transaction to their financial establishment account.
2. The Originator prepares report about the transactions that are to be automated for its buyers or workers and push it to an Originating Depository Financial Institution (ODFI).
3. The Originating Depository Financial Institution (ODFI) compiles the Automated Clearing House (ACH) transactions from different organizations, consolidates the report and submits it to the ACH service provider.
4. ACH service provider processes transaction files by submitting it to Originating Depository Financial Institutions (ODFIs) and transfer it to Receiving Depository Financial Institutions (RDFIs).
5. The RDFI gets entries for its customer accounts and transfers entries on the due date. Transactions are also presented on the account statements.

ACH Flow Diagram: