ACH Processing

ACH Debit

ACH debit transactions are most often originated by bank customers for recurring payments from their customers. Using a safe and secure web interface a bank customer can originate a batch of withdrawals from it’s customer’s account, provided they have written permission to do so.

Good examples of ACH debit transactions are monthly insurance payments, gym membership dues, and subscriptions for periodic services.

Benefits of using ACH Debit include:

  • Reduced cost of postage, personnel, and time sending out statements
  • Increased collection rate
  • Predictable collection rate
  • Ability to predict cash flow accurately

ACH Credit

Just the opposite of ACH debits, ACH credit processing allows you to originate a payment from your account to one of your vendors or other parties, using the same encrypted web interface.

Examples include federal tax deposits, payments to vendors that you want to wait until a certain time of the month to pay them, and the most common type, employee payroll deposits.

Benefits of using ACH Credit include:

  • Predictable timing of payments to vendors
  • Retaining your cash until the last possible day to pay and stay within vendor terms
  • One banking day processing of payments to vendors and employees
  • Cost and time savings similar to ACH debit

Both ACH debits and credits require you to have the other party’s bank routing and account numbers. Other than a minor amount of record-keeping, handling ACH transactions is easy and fast. Training is easy and our bank provides you back-up support help when you have a question.

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