Tag Archives: ACH Transfer

ACH Payment Processing

ACH Transfer| How They Processed and Work?

ACH transactions are computerized payments that provides benefits to customers and merchants in an inexpensive way. It is controlled by an automated clearing house network, funds are transferred directly from on bank account to another. This type of payment are automated or recordkeeping and offers an easy way of the electronic payment system. ACH payments are the most popular form of payment transfer method for many businesses that they can offer to their consumer, as it cost low transaction fees and convey predictable processing timelines.

Every year more than 25 billion ACH Transactions are been processed by the ACH network. Radiant pay facilitates ACH and Check Processing, stat testing the system with radiantay.com to know the better language of ACH Payments.

Now! How Does This ACH Network Work? Let Us Explain

Many business entities pay wages through direct deposit or let us say consumers pay bills electronically, nowhere ACH payments are responsible for those payments.

Some Takeaway of ACH Payments

  • It is an electronic bank transfer that is processed through the Automated Clearing House Network.
  • ACH Payments are most commonly used for employers to pay the payrolls directly into the bank accounts.
  • ACH transfers are inexpensive, quick, secure, and fast.
  • It is easy to keep the record of income and expenses with every transfer, however the bank creates an electronic record of ACH transfer.

Types of ACH Transfer

Gone those days when you have to walk-in for bill payments or wait for a check to clear, ACH transfer make life easier for consumer and merchants. One can conveniently transfer or receive the amount just sitting at home. ACH Network Processes two kinds of transaction i.e.

Direct Deposit

Direct Payments

Direct Deposit is a kind of electronic payment made from a business entity to the consumer. It includes:

Pay checks
Tax Refund
Interest Payments
Government Benefits
Annuity Payments

ACH Direct Payments can be used by single persons, businesses, and other entities to send money. For e.g, if you’re recharging your DTH Plan online with your bank account, that’s an ACH direct deposit.

ACH Payment Processing

Wire or ACH? Which Payment Transfer You Will Choose?

ACH and Wire Transfer Payments
Online Safe and Secure Money Transfer Services

Banks use Automated Clearing House to Transfer Funds Electronically from one bank to another in safe and secure way. In these digital economy people and business firms would like to receive payments through direct deposit. As they find more convenient these method rather than using checks. This electronic transfer of money from one place to another is called ACH OR Automated Clearing House. Whereas wire transfer allows you to move your money from your account directly into the account of someone else.

Let’s Checkout the Difference between ACH and Wire Transfer

ACH Transfer – The electronic transfer of funds from bank account to another. Payment transfer is not occurring on real time the transaction is settled on future date.  Transactions are entered with a date to settle which is normally the next day.  Payments are transferred by your banks in groups or batches along with all their other customer’s scheduled payments, usually at the end of the business day. ACH Transfer is less expensive and can be done on batches. ACH cost banks $0.035 per transaction or $0.025 per transaction in bulk. ACH Transfer is given to customers in between $0.10 and $2.50, depending on volume. ACH by definition is meant to be automated, and meant to be delayed settlement, thus the lower cost associated.

Wire Transfer – It is similar to ACH Payments but have some few differences. Wire transfer perform task on real time and cannot be done on batches, performed manually. Wire transfer is more expensive than ACH Transfer. When an individual make wire transfer, both account holders are verified with the exact money in the account. Wire transfers are fast and secure; and since they’re handled individually by the banks.

Transferring funds, either by ACH or wire, is generally safe when using a financial institution. However, if your computer has become infected with malicious software (malware), cybercriminals can steal usernames and passwords and defeat common methods of user authentication employed by financial institutions.