Electronic transactions known as Automated Clearing House (ACH) debits “lift” money from the payer’s account and deposit it into the payee’s account. ACH debits, as opposed to ACH credits, are started by the payee rather than the payer.
Both sides must agree to an ACH debit payment before it can proceed, which means the payer (often a customer) must allow the payee (typically a business) permission to withdraw money from their account. These basic payment methods provide a safe and economical option for businesses to receive payments.
Businesses and governmental organizations, for instance, frequently accept recurring monthly payments such as membership fees or loan repayments through ACH debits.…Continue reading