A validating tool: Connect with your payment platform to review how they validate ACH information so that there are no delayed or rejected payments.ĪCH payments are a secure way to manage recurring charges, but they can be limiting when processing frequent charges or large sums.Customer approval: Customers will need to approve an ACH mandate, either as a one-time approval or a recurring approval for each payment, whichever you prefer.Payment processing : Make sure that whatever financial platform you’re using has a secure way for customers to input their banking account and routing numbers for ACH payments.A business bank account : Check with your banking institution to make sure your account is properly set up, both as a business account and enabled to receive ACH payments.To process ACH payments, you’ll need the following: It’s easiest to scale by managing payments on your end so that you can submit all your ACH requests at the same time regularly rather than waiting for customers to submit their payments. Either you can initiate the transfer of funds with customer approval or customers can initiate payment to you. Processing ACH payments requires the banking account and routing numbers for both financial institutions involved in the transfer. Monthly, the utility company submits a request that funds are withdrawn from the customer’s account. Customers submit their banking information to their utility company. When it is time to distribute pay, the company uses that banking information to request that funds be deposited in the employee’s account.Ī debit occurs when a request is submitted for the withdrawal of funds. An employee gives their place of work their banking information. A credit occurs when funds are deposited into an account, like with direct deposit. There are two kinds of ACH payments: credit and debit. Because of the secure process, ACH payments are preferred for payments like employee direct deposit and federal payments. An ACH payment is an electronic transfer of funds between institutions, like banks and credit unions, that occurs using the Automated Clearing House network.ĪCH payments can be used to deposit checks, automate billing and schedule recurring charges.
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