The ACH (Automated Clearing House) Network is everyone’s favorite payment processor they’ve never heard of. More than 5.7 billion ACH debit and credit transactions were completed in the second quarter of 2018 alone, and the vast majority of employees receive their paychecks via ACH direct deposit.
This technology is being used to move money and make payments all around us, but what is it? And, how can you harness its power and convenience to maximize the efficiency of your accounting firm’s accounts receivable?
ACH payments are quick, secure and economical. And, offering ACH as a payment method for clients is a great way to provide an additional convenience both for them and for your accounting firm.
What is ACH payment?
The ACH Network is a payment processing system that allows financial institutions to electronically transmit transactions, rather than processing paper checks or documentation.
When you make an ACH transfer, you provide your bank information (account and routing numbers, the same data seen on a paper check). Your bank processes the transaction electronically through the automated clearing house (ACH) network and dispenses the funds to your payee.
ACH makes it easier for your accounting firm to manage payments coming in from clients because the funds can be transmitted online and client information can be kept on file to facilitate regularly scheduled payments.