Automated Clearing House (ACH)
When you use ACH through Texell’s Business Banking, you can pay or collect funds electronically through the ACH network, one of the world's most reliable payment networks. With speed and accuracy, ACH offers control over the timing of payments and helps improve forecasting, while reducing exposure to check fraud.
Frequently Asked Questions
The National Association Clearing House Association (Nacha) is the rule-making body that governs the ACH network and, therefore, all participants of the ACH network must comply with these rules. We recommend you purchase a copy of the updated Nacha Operating Rules & Guidelines annually. We also have a copy at each of our branches for your reference.
What is an ACH payment?
ACH stands for Automated Clearing House, the financial network in the United States responsible for overseeing ACH deposits. Chances are you are already using ACH often even if you don’t use the word. If you receive a direct deposit, make a payment electronically without a credit card, or through popular apps like Venmo. ACH payments are also cheaper than credit card transactions in most cases, helping small businesses save money.
What types of ACH payments are there?
There are two types of ACH transfers, credits and debits. Debit transactions “pull” money from an account such as a bill payments that allows the company to withdraw from your account. In contrast, a credit transaction “push” money to account at different banks from accounts you own.
How does ACH work?
Let’s us the example of a business paying its employees through direct deposit. The flow of the ACH payment works like this:
- The originator (in this case you the employer) initiates a payment or deposit and gives a file with instructions to your financial institution (in this case Texell).
- Texell sends the ACH file to the ACH network.
- The ACH network passes those payments to your employees' banks and credit unions.
- Your employees’ bank or credit union adds the money to their account based on the information in the ACH file.
What are the benefits of ACH payments?
The benefits of ACH payments may vary from business to business but some of the common benefits include:
- Less expensive than checks and credit cards
- Secure
- Convenient for your customers
- Convenient for your business
- Fewer payment failures than credit cards
What are the drawbacks of ACH payments?
- Funds not available for debit transactions
- Fraud and unauthorized transactions
- Up to three-day processing times
- Risk of ACH reversal
Automated Clearing House (ACH)
When you use ACH through Texell’s Business Banking, you can pay or collect funds electronically through the ACH network, one of the world's most reliable payment networks. With speed and accuracy, ACH offers control over the timing of payments and helps improve forecasting, while reducing exposure to check fraud.
Fequentely Asked Questions
The National Association Clearing House Association (Nacha) is the rule-making body that governs the ACH network and, therefore, all participants of the ACH network must comply with these rules. We recommend you purchase a copy of the updated Nacha Operating Rules & Guidelines annually. We also have a copy at each of our branches for your reference.
What is an ACH payment?
ACH stands for Automated Clearing House, the financial network in the United States responsible for overseeing ACH deposits. Chances are you are already using ACH often even if you don’t use the word. If you receive a direct deposit, make a payment electronically without a credit card, or through popular apps like Venmo. ACH payments are also cheaper than credit card transactions in most cases, helping small businesses save money.
What types of ACH payments are there?
There are two types of ACH transfers, credits and debits. Debit transactions “pull” money from an account such as a bill payments that allows the company to withdraw from your account. In contrast, a credit transaction “push” money to account at different banks from accounts you own.
How does ACH work?
Let’s us the example of a business paying its employees through direct deposit. The flow of the ACH payment works like this:
- The originator (in this case you the employer) initiates a payment or deposit and gives a file with instructions to your financial institution (in this case Texell).
- Texell sends the ACH file to the ACH network.
- The ACH network passes those payments to your employees' banks and credit unions.
- Your employees’ bank or credit union adds the money to their account based on the information in the ACH file.
What are the benefits of ACH payments?
The benefits of ACH payments may vary from business to business but some of the common benefits include:
- Less expensive than checks and credit cards
- Secure
- Convenient for your customers
- Convenient for your business
- Fewer payment failures than credit cards
What are the drawbacks of ACH payments?
- Funds not available for debit transactions
- Fraud and unauthorized transactions
- Up to three-day processing times
- Risk of ACH reversal
Automated Clearing House (ACH)
When you use ACH through Texell’s Business Banking, you can pay or collect funds electronically through the ACH network, one of the world's most reliable payment networks. With speed and accuracy, ACH offers control over the timing of payments and helps improve forecasting, while reducing exposure to check fraud.
Frequently Asked Questions
The National Association Clearing House Association (Nacha) is the rule-making body that governs the ACH network and, therefore, all participants of the ACH network must comply with these rules. We recommend you purchase a copy of the updated Nacha Operating Rules & Guidelines annually. We also have a copy at each of our branches for your reference.