ACH Processing

Automated Clearing House (ACH) is an electronic network established over a nation that enables businesses send and acquire a wide variety of financial payments. ACH operates with the help of National ACH Association and is governed by the Federal Reserve.

The main objective of ACH is to help merchants all over the nation process business transactions worth huge volumes involving credits and debits in batches. Such transaction may include payments for suppliers and vendors, direct deposit payroll, mortgage loan repayments and customer insurance payments. Due to the huge volume of transactions involved, the SCH payment system keeps the use of paper to a bare minimum besides restricting the processing charges.

ACH payments have gained much popularity, but many of you aren’t quite aware of their advantages or how they may assist your business. ACH payments have taken the world of payment by surprise as they enhanced security and lowered costs for all major businesses.


ACH processing indulges in a monetary settlement that involves actual funds transfer to certain financial institutions. Such transfer of funds is committed by the Federal Reserve Bank. Upon calculating the net credit and debit amounts of these institutions, the information gets posted with the reserve accounts. Generally, it takes up to 5 business days to deliver the ACH credits.

The electronic payment transfer system that conducts an ACH payment processing ensures privacy, security and a strong connection with most financial institutions within the US. ACH payment processing grows alongside e-commerce processes. ACH processing has yielded considerable support towards a majority of e-commerce businesses. Eventually, ACH processing will contribute towards evolution of these businesses.

  • Unlike paper checks, they provide options that are quick and free of hassles.
  • It shows certain economic options for the growing ecommerce businesses.
  • Saves much time by removing the requirement of postage and envelope.
  • Supports automatic payment and billing that are recurring in nature.
  • Most financial organizations and banks within our nation are connected via ACH.
  • Provides an electronic payment system that’s both reliable and secure. It helps in protecting both your checks and credit cards.
  • Electronic checking of savings, credit and debit accounts is feasible.

Various credit repair organizations, collection agencies, non-profit organizations and loan issuing services are opting for ACH payment processing now-a-days. Helping customers to set up their recurring payments is one of the major reasons why these merchants are going for ACH processing. In an attempt to help the non-profit organizations, recurring donations are enabled by ACH.

Numerous business houses and their customers have expressed satisfaction over ACH payment processing. The year 2013 had witnessed some 22 billion ACH payments that generated $38.7 trillion depicting a rise worth 4 percent than the previous year.

Payehub is a payment gateway that follows the compliance norms set by PCI. Alongside offering an integrated ACH payment, Payehub also provides a number of payment processing options, live customer support and an option that performs effective risk management. Merchant accounts that possess a high risk from their offshore to international offices may enjoy a few economical solutions provided by Payehub.


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