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HomeFinance and AccountingBusiness PaymentsWhat is an ach payment method and how does it work?

What is an ach payment method and how does it work?

ACH is one of the payment methods that you can choose or your business or for yourself that is available on the market. The question is, what does it mean to pay with ACH, and what happens to your money when you do so? Here is the ACH payment method explained.

ACH stands for Automated Clearing House, and it is a network that enables secure payment, so money transfers between two accounts. Each ACH transaction needs to be accepted by you and then verified by the bank in order to go through the system. This is why ACH is considered a secure form of payment that is modern at the same time.

ACH is an alternative to traditional paper checks and credit card payments. It is also a low-cost form of transferring money. However, you do have to wait for a couple of days for the money to go through the banking system. It is also the best method for a company to control its finances. ACH is used by most of the companies that sell their products online, as it is easy to manage a lot of payments by using this method.

If you are considering to use or switch to ACH payments, you might also think about third party payments and setting up a merchant account. Look at the graphic below to get some more knowledge about merchant accounts to go with your ACH information.

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