ACH stands for automated clearinghouse. In
laymen terminology it’s an electronic network for handling electronic banking transactions.
Quite simply, any entity whether a business government entity, organization, or individual
can utilize the ach network to electronically send or receive funds through. Ach transactions
operate differently than credit cards. Credit cards have an authorization component that
let’s the biller know in real time that the payment is good. The Ach world operates in
a batch environment and it can be 24 -72 hours before an issue or payment is known. There
is also a major difference in cost. Credit cards may cost a business 2-3% of the transaction
amount, whereby ACH is typically a flat 25-50 cent fee, this can add up. Coupled with much
higher decline rates with credit cards ach payment are a great option for recurring billing.
Subscription based businesses are huge beneficiaries of participating in the ach network. Today’s
tool set up allows them to connect directly with an ach processor via api and automate
the entire process for recurring receivable transactions, never having to wonder about
payments showing up on time. For more information visit agilepayments.com n for What is an ACH
payment?

6 thoughts on “What is an ACH payment? | Automated clearinghouse Transfers and Transactions | Agile Payments”

  1. I paid my storage bill using my checking account. I got an email right away confirming payment. That was all on the third of this month. Today I got an email notifying me that the company is charging me $25 on top of my bill for insufficient funds. The bank of course says I have the funds and said they see no rejection transaction nowhere. So I drove to the company and this is when I heard of ACH ever in my life. The manager told me that the bank rejected payment because they weren't an ACH member. I asked the manager don't y'all accept check payments in your automated system. She said yes. I went on to say I have sufficient funds and I paid with a check. She again said something about the bank rejecting it because of ACH. SO I took a trip to the bank and sat down with them. They saw no such transaction. The bank got the ACH team on the phone. After about fifteen minutes I was told they found no such transaction and there wouldn't have been a denial because of insufficient funds because I have and had sufficient funds. Have anybody ever heard of this happening? I'm waiting for the storage company's district manager to return my call. I shouldn't be punished $25 for trying to pay my bill. I'm thinking this could be a scam that the company could be running and I'm about to bust it wide open. Can anybody enlighten me on this? If the bank says they didn't reject payment because of insufficient funds because I had sufficient funds, how can a company charge me a fee for not having sufficient funds. The bank is even raising an eyebrow

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