The Automated Clearing House (ACH) is an electronic network for financial transactions in the United States that processes large volumes of credit and debit transactions in batches. ACH payment is a tool that electronically debits a customer’s bank account instead of using paper checks.
How do ACH payments work?
ACH payments are electronic payments made through the Automated Clearing House (ACH) Network. Funds move from one bank account to another with the help of an intermediary that routes funds to the final destination. Computerized payments can provide benefits to both merchants and consumers. Payments are inexpensive, they can be automated, and record-keeping is easier with electronic payments.
Here’s how it works:
Retailer logs into virtual terminal online via internet connected device.
The customer’s personal information and card details are input.
The transaction is submitted for authorization.
Once approved, confirmation is received, and the customer receives an email receipt.