Why Choose Alternative Automated Clearing House Processing?

Have you ever wondered how the process of online payment happens? Whether it is to send or receive funds or make payments towards financial or governmental institutions, there must be some kind of established mechanism, right?

Well, there is, and it’s called Automated Clearing House (ACH). Stay tuned as we unravel how it works, along with all the essential information you need to know.

What Is Automated Clearing House?

In simple words, the Automated Clearing House network is a system that transfers funds electronically from one party to another. With ACH, individuals and businesses alike may safely send or receive funds online, whether it is for paying bills or receiving direct deposits.

The safety of using ACH is guaranteed by the National Automated Clearing House Association (NACHA) that manages it, and the federal government that regulates it.

Unfortunately, though, most ACH payment systems only support two types of payments: credit transfer and debit card payments. 

How Does ACH Work?

Essentially, in an ACH network, every transaction involves an Originating Depository Financial Institution (ODFI) and a Receiving Depository Financial Institution (RDFI).

Essentially, transfers are made from one bank account to another. For example, a company, processing payroll, can initiate a transfer from their bank account to the bank accounts of their employees. 

Every transaction involves an Originating Depository Financial Institution (ODFI) and a Receiving Depository Financial Institution (RDFI). The process is not that complicated, this is what happens:

1. The originator (employer/business) starts the direct deposit using an Automated Clearing House network.
2. The payment amounts are entered over the Internet into the ACH network.
3. The ACH network connects with the bank of the employer (ODFI).
4. The bank (ODFI) organizes the payments and transmits them in batches to an ACH operator.
5. The ACH operator sends funds to the banks of the employees (RDFI).
6. The bank (RDFI) puts the money into the bank accounts of employees.

Keep in mind that in order to use the ACH method, the sender must have the bank account details of the receiver. This includes the name of the recipient, the type of account (savings, checking), the ABA routing number of the bank, and the account number.

Why Choose ALT-ACH Processing?

Alternative Automated Clearing House processing allows you to diversify your payment options beyond traditional credit card payments, letting you attract a broader range of customers.

ALT-ACH processing provides alternative methods and technologies that aim to complement and enhance traditional ACH processing. The goal is to improve efficiency, reduce costs, and offer additional services.

We offer a variety of payment options, including ACH transfers, e-checks, and electronic fund transfers (EFTs). What is more, our ALT ACH processing fee comes with lower processing fees compared to traditional credit card transactions, and the ability to automate regular payments.

Last but not least, we are dedicated to supporting your business throughout the whole process, with a dedicated support team that specializes in alternative payment solutions, ready to assist you with any inquiries or technical issues you may have.

Electronic Transfer – Excellence Since 1989

You can trust Electronic Transfer – we’ve been in business for over 30 years and helped over 50,000 Merchants with their credit card processing.

We have a wide variety of services, including mobile credit card processing, shopping cart solutions, and Point of Sale (POS) software solutions. Leave a message or give us a call, and we can start talking business.