Understanding ACH Payments: The trusted network for US Bank Transfers

by | Dec 13, 2023 | 0 comments

When it comes to US financial transactions, ACH payments stand as a fundamental method for electronic bank-to-bank transfers. This system, facilitated through the ACH network overseen by Nacha, powers the movement of money across US bank accounts. Let’s delve into the essentials of ACH payments and explore the advantages they offer to businesses and consumers alike.

What is ACH?

ACH (Automated Clearing House) is a network for electronically transferring funds between bank accounts within the United States. The ACH network handled over $77 trillion worth of transactions in 2022, encompassing various financial interactions, from government disbursements to consumer and business transactions.

Understanding ACH Payments

ACH payments, also called ACH transfers, are at the core of this system. They come in two main types:

  1. Direct Deposits: These cover various payments from businesses or governments to individuals, like payroll, benefits, refunds, and interest payments.
  2. Direct Payments: These involve using funds for payments by individuals or organizations and is the main focus of this article.

Types of ACH Direct Payments

ACH transfers come in two main types: ACH credits and ACH debits. The difference lies in how money moves—credits push funds, and debits pull funds. Debits are also called ACH Autopay.

Here’s the breakdown:

ACH Debits: The recipient (payee) pulls money from the payer’s account in these ‘pull’ transactions.
ACH Credits: The payer pushes money from their account to the recipient in these ‘push’ transactions.

In simpler terms:

ACH Debits are like subscriptions, happening regularly.
ACH Credits are more like one-time payments.

Benefits of ACH Payments

Cost Efficiency

ACH transactions emerge as a cost-effective means of convenient payments vs credit card networks. ACH also minimizes the costs often involved in handling and mailing paper checks.

Unlike speedy wire transfers that deliver same-day settlements but come at a high cost, ACH payments provide a much more affordable solution, especially for transactions that aren’t urgent.

Customer Retention

ACH payments help you against involuntary churn as bank accounts serve as stable sources of funds. It’s also the preferred electronic payment for US businesses, giving your customers the payment choice they like.


ACH transactions are open to anyone with a US checking or savings account, catering to businesses and consumers alike.

Are you looking to make ACH payments even better for you and your customers? ezyCollect provides instant account verification, one-click payments and cash application of payments back to your ERP.

Evaluating ACH for your business

To assess if integrating ACH payments aligns with your business strategy, consider various factors:

  • Existing recurring payments within your business model.
  • The prevalence of paper checks or credit card payments among your customer base.
  • Comparative cost analysis of ACH processing versus credit card fees.
  • Potential transition feasibility from card to ACH payments for customers.
  • Customer preferences or any limitations hindering credit/debit card usage.

Get started with ACH Payments

In summary, ACH payments are the cornerstone of electronic bank-to-bank transactions within the US. Unlike card payments, they offer a low-cost, accessible, and customer-retentive mechanism, which is particularly advantageous for businesses dealing with recurring payments.

Considering ACH payments can mean smoother operations, lower costs, and a chance to include more customers in your business.

Ready to provide a better ACH payment experience?

Learn more about ACH transactions in ezyCollect Payments and how it could efficiently accept and collect ACH payments from your US-based customers.


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