Ultimate Guide To ACH System

ACH System By TheEcheck

ACH System lets the businesses get paid faster. A merchant can accept ACH payments online, in-person or over the phone. It helps businesses to improve cash flow and better transaction management. The ACH system has its area of operation in the United States Of America. The payment method is widely accepted across the nation. For businesses, the ACH payment system is a better alternative to physical checks. Merchants use ACH processing to streamline receivables and eliminate the higher transaction charges as those of credit card processing. However, using both solutions is essential for businesses because every payment instrument is an asset to businesses. We at TheECheck.com is a leading ACH payment system provider in the USA. Contact us today at +1-855-403-3855 to get the merchant services that best fulfil your business needs.

What Is An ACH Transaction?

An ACH transaction is an online or electronic transfer of money from one bank account to another. The ACH system uses the Automated Clearing House(ACH) network to process the transactions which usually get processed in batches. A merchant can use ACH payment processing solution to accept one-time payment as well as recurring billing. Once the payment gets processed, the funds get transferred directly from the customer’s checking account to merchant account.

How Is ACH Different From Physicals Check?

The ACH payment system eliminates the need for a physical paper check. Merchants can accept electronic checks or echecks which get processed through ACH network. ACH payments are an electronic transfer of money, whereas mail is used to deliver physical checks. Thus, ACH eliminates the time-consuming trips to the bank to clear the check payments. It is a convenient, easy and hassle-free payment system.

Why Should A Merchant Use ACH System To Accept Payments?

ACH payments are convenient to customers as well as merchants. It doesn’t require any physical check to write, nor it has to get clear by having a trip to banks. It doesn’t involve any credit card debt to customers as well as accepting ACH payments are far cheaper to merchants compared to credit card processing. The ACH system is available 24×7. There is no shortage of Cheque leaf or frustration of bank closure. It eliminates the physical handlings and fear of check theft. It is safe, secure, and everything is electronic.

FAQ On ACH System

What Is An ACH Hold?

An ACH hold is when the fund is granted by the customer, but the bank withholds the specified amount until the transfer of funds is initiated. The bank in charge withholds the fund to make sure that the fund is not spent elsewhere. The bank does so because ACH payment processing takes time to initiate the transaction and move the fund from the customer checking account to the payee account.

How Long Does An ACH Payment Processing Take?

It may take around 3-5 days for an ACH payment to get processed and settled. However, ACH payments are processed in batches, and banks send the payment to the ACH network at the end of every day to get processed. 

What Happens If There Are Insufficient Funds In The Customer’s Checking Account?

If there is insufficient balance in the customer’s checking account, it will be processed the same as a bounced check. The pitfall of insufficient balance in a customer’s checking bank account is that he is liable to pay insufficient funds penalties. 

What Information Does A Merchant Need To Ask To Accept ACH Payments?

  • Customer’s bank Account Number
  • Customer’s Routing Number
  • Customer’s Name on Bank Account

What Is The Difference Between Voiding ACH Payment And Crediting ACH Payment?

Voiding an ACH payment is a way to stop the ACH transaction before the transaction is batched and sent to the ACH network to get processed. And if the merchant fails to void a transaction before it goes to ACH network, the funds get credit to the payee account. There are cases when a merchant has to stop the ACH transaction before it gets processed; in that situation, voiding helps.

How Does A Merchant Get ACH Payment Processing Solution?

To accept ACH payments from your customer, a merchant needs to set-up an ACH processing account. It is a one-stop solution that fulfils most of your processing needs. To get the merchant services, you can reach us at +1-855-403-3855 or mail us at [email protected].

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