What Is ACH Credit?

by Jeannine Mancini ; Updated July 27, 2017

ACH is an acronym for , an electronic network used to process bank-to-bank transactions. An ACH credit occurs when funds are deposited electronically into an account. The payer initiates a payment through her bank, which then electronically transmits the payment through the ACH to the recipient's bank account. You can receive funds or make payments by .

ACH Credits

The most common ACH credits are direct deposits, which can include paychecks and government benefits. When you elect to have your IRS or state tax refund directly deposited into your bank account, it's an ACH credit as well because it pushes funds into your account.

You also can make payments by ACH credit. For example, business owners in may use an ACH credit to pay state taxes. You authorize your financial institution to transfer a specified payment amount from your account to the state's account.

ACH Debits

An occurs when you authorize a department, agency or company to take money from your account, generally on a reoccurring basis. Unlike an ACH, your bank isn't initiating the transfer. You'll need to sign up with the company or agency you plan to pay. It will need your account number and permission to deduct the payment amount each month. Examples of ACH debits include insurance and mortgage payments. Some states also offer the ACH debit option for business owners to pay their taxes.

Video of the Day


Related pages


how to get title for abandoned vehiclestatement of retained earningmake money collecting cansforeclosure laws in tennesseesears credit card pmtgrants for senior citizen programsmoneygram money order refund formemergency room costs uninsuredhow long do you have to have an sr22lease car tax deductiblepaypal cash back debit carddoes getting a car insurance quote affect your credithedging with stock index futuresebit examplecan i cash out an iracredit suisse gold pendantvoluntary repo letterwhat is a cvc on credit cardsafe deposit box rules and regulationsdiane perez wikipediataxes on roth ira withdrawalget stolen credit card numberscollege scholarships for children of single parentswww hchdonline com gold cardbank of america atm protection phone numbertn food stamp qualificationsh&r block 1 800 numberprotect credit cards from scanningbbcn credit cardflorida quit claim deed formhow to fill out a moneygram money ordergeico automatic paymentturbotax rapid refundscholarships for ged studentshow to endorse a money order to someone elsefha mip premiumdo speeding tickets affect insurancedoes walmart cash checksdividend growth rate equationamerican express atm locationsgeorgia eviction lawsscholarship for african american femalesbeacon score vs credit scorecalculating accrued interestmeaning of contingent liabilityw-4pebt balance galess tax withheld from paycheckveterans dependents scholarshipsform 3468 instructionshow long are personal checks validcpr certification lookupfood pantries in indianapolis indianasample objectives on resumeshow to calculate bi-weekly salarysecuritas w2weight loss programs covered by medicaidlotto taxtax rate on settlementsmyfico credit cardgeorgia housing & finance authorityhow long do tax liens stay on creditdo western union money orders expiremassage envy cancellation formpetty cash accountingpharmaceutical stockshead of household qualifying relativesavings withdrawal limit fee chasescholarship essay conclusionhow much does overtime get taxedhow to transfer money from greendot to greendothow do i find lost 401k moneywhat happens if you let your car insurance lapsewalmart credit card requirements

Benefits of ACH Transfers

ACH credits and debits are fast and convenient. You don't have to worry about checks getting lost in the mail or remembering to make a payment each month. Payments are received within 1 to 3 business days. For business owners, payments using electronic funds transfer through ACH help reduce costs, including printing and check processing fees.

Cons of ACH Transfers

An ACH transfer requires you to give out your personal banking information to an employer or company. If there's a billing error, you may be charged an incorrect amount. Since you aren't making the payments yourself, there's a risk you could forget about the payment and overdraw your account if the funds aren't available.

References

About the Author

Jeannine Mancini, a Florida native, has been writing business and personal finance articles since 2003. Her articles have been published in the Florida Today and Orlando Sentinel. She earned a Bachelor of Science in Interdisciplinary Studies from the University of Central Florida.

bibliography-icon | raiffeisen-cards.ru icon for annotation tool Cite this Article

Related pages


how to get title for abandoned vehiclestatement of retained earningmake money collecting cansforeclosure laws in tennesseesears credit card pmtgrants for senior citizen programsmoneygram money order refund formemergency room costs uninsuredhow long do you have to have an sr22lease car tax deductiblepaypal cash back debit carddoes getting a car insurance quote affect your credithedging with stock index futuresebit examplecan i cash out an iracredit suisse gold pendantvoluntary repo letterwhat is a cvc on credit cardsafe deposit box rules and regulationsdiane perez wikipediataxes on roth ira withdrawalget stolen credit card numberscollege scholarships for children of single parentswww hchdonline com gold cardbank of america atm protection phone numbertn food stamp qualificationsh&r block 1 800 numberprotect credit cards from scanningbbcn credit cardflorida quit claim deed formhow to fill out a moneygram money ordergeico automatic paymentturbotax rapid refundscholarships for ged studentshow to endorse a money order to someone elsefha mip premiumdo speeding tickets affect insurancedoes walmart cash checksdividend growth rate equationamerican express atm locationsgeorgia eviction lawsscholarship for african american femalesbeacon score vs credit scorecalculating accrued interestmeaning of contingent liabilityw-4pebt balance galess tax withheld from paycheckveterans dependents scholarshipsform 3468 instructionshow long are personal checks validcpr certification lookupfood pantries in indianapolis indianasample objectives on resumeshow to calculate bi-weekly salarysecuritas w2weight loss programs covered by medicaidlotto taxtax rate on settlementsmyfico credit cardgeorgia housing & finance authorityhow long do tax liens stay on creditdo western union money orders expiremassage envy cancellation formpetty cash accountingpharmaceutical stockshead of household qualifying relativesavings withdrawal limit fee chasescholarship essay conclusionhow much does overtime get taxedhow to transfer money from greendot to greendothow do i find lost 401k moneywhat happens if you let your car insurance lapsewalmart credit card requirements

Related pages


how to get title for abandoned vehiclestatement of retained earningmake money collecting cansforeclosure laws in tennesseesears credit card pmtgrants for senior citizen programsmoneygram money order refund formemergency room costs uninsuredhow long do you have to have an sr22lease car tax deductiblepaypal cash back debit carddoes getting a car insurance quote affect your credithedging with stock index futuresebit examplecan i cash out an iracredit suisse gold pendantvoluntary repo letterwhat is a cvc on credit cardsafe deposit box rules and regulationsdiane perez wikipediataxes on roth ira withdrawalget stolen credit card numberscollege scholarships for children of single parentswww hchdonline com gold cardbank of america atm protection phone numbertn food stamp qualificationsh&r block 1 800 numberprotect credit cards from scanningbbcn credit cardflorida quit claim deed formhow to fill out a moneygram money ordergeico automatic paymentturbotax rapid refundscholarships for ged studentshow to endorse a money order to someone elsefha mip premiumdo speeding tickets affect insurancedoes walmart cash checksdividend growth rate equationamerican express atm locationsgeorgia eviction lawsscholarship for african american femalesbeacon score vs credit scorecalculating accrued interestmeaning of contingent liabilityw-4pebt balance galess tax withheld from paycheckveterans dependents scholarshipsform 3468 instructionshow long are personal checks validcpr certification lookupfood pantries in indianapolis indianasample objectives on resumeshow to calculate bi-weekly salarysecuritas w2weight loss programs covered by medicaidlotto taxtax rate on settlementsmyfico credit cardgeorgia housing & finance authorityhow long do tax liens stay on creditdo western union money orders expiremassage envy cancellation formpetty cash accountingpharmaceutical stockshead of household qualifying relativesavings withdrawal limit fee chasescholarship essay conclusionhow much does overtime get taxedhow to transfer money from greendot to greendothow do i find lost 401k moneywhat happens if you let your car insurance lapsewalmart credit card requirements
"].join(""));l.close()}catch(m){b.src=a+'d.write("'+loaderHtml().replace(/"/g,String.fromCharCode(92)+'"')+'");d.close();'}b.contentWindow.config=k;b.contentWindow.SCRIPT_ID=g},0)}}}(); window.usabilla.load("w.usabilla.com", "4a73c8c43a12"); /*]]>{/literal}*/