Automatic Clearing House (ACH)

• ACH origination is less costly than traditional payment methods such as paper checks and wire transfers. Businesses that utilize ACH origination save on check printing, postage, and processing fees, which lead to significant cost reductions over time. 
• ACH Origination allows businesses to schedule payments in advance, allowing for greater control over the cash flow of the business. Automating recurring payments can enhance the ability to forecast expenses and manage liquidity effectively.
• ACH origination is more secure than traditional payment methods. ACH origination uses built-in encryption and authentication methods to protect sensitive financial information. Unlike paper checks, which can be lost or stolen, ACH payments provide a greater peace of mind for businesses, as well as their customers, employees, and vendors.
• ACH transactions can clear faster than paper checks, usually within 1-2 business days from the date of origination. Faster processing time can expedite payment cycles and improve relationships with customers, employees, and vendors.

For a business to originate an ACH transaction, the business must obtain authorization and gather financial institution account information from the recipient of the ACH transaction. Once the authorization and financial institution account information have been obtained, a business enters the account information and sends the electronic debit or credit directly to the account via the ACH network. ACH transactions can be scheduled for a future date and can even be scheduled on a recurring basis.