ACH Transfer| ACH Credit | What is ACH?

ACH transfer is one of the easiest and quickest ways to transfer money throughout the world. If you are looking for an urgent business payment, ACH transfer is the best way to transfer fund. You can transfer money to every part of the globe without visiting your bank to initiate the transfer.

If you visit a bank to transfer fund you need to stand in a queue in order to initiate a fund transfer. ACH transfer is one of the best ways to transfer money because you can initiate a transfer at your own convenience from home or anywhere else that is convenient for you. All you need to initiate the transfer is a computer with a basic internet connection and an ACH account with a bank or a reputed financial organization.

To transfer fund from your bank account you need to initiate ACH transfer from your online ACH account and request the bank to perform an ACH debit of the amount you want transfer and credit it to the intended receiver’s bank account.

ACH transfer is one of the oldest ways to transfer money since 1970’s and it works as a mediator to transfer money. Generally ACH processing software require 42 to 72 hour to be completed because ACH transaction are done in bulk batch files and the bank will only activate automated clearing house transfer at a fixed a date.

Most of the bank will charge a fee to transfer fund by means ACH transfer, the fee is quite cheaper compare to wire transfer.

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.