ACH (Automated Clearing House) Payments are the electronic transfer of funds used by the Federal Reserve Banking System’s ACH Network. The ACH Network acts as a centralized electronic network connecting most U.S. banks and allows for the transfer of funds to and from bank accounts and provides reporting of those transfers. Payment via ACH is available to all NDMS merchants. ACH advantages include direct debit from a customer account to yours for payment of goods or services, auto-billing, automatic transfers, and more. In addition, ACH payments are cheaper and faster than payments using traditional paper checks.
How it Works:
Here is an example of an ACH debit transaction, which is the most common type of ACH transaction:
- A merchant signs up for ACH services through NDMS.
- The merchant offers their customer payment via ACH as an option, thus allowing for direct payment from the customer’s bank account to the merchant’s bank account (checking or savings). As required by regulations, the customer must provide authorization in writing, giving permission to the merchant to apply the debit toward their account for the agreed upon date and amount (NDMS can assist with this process).
- NDMS compiles and transfers the transaction to the banks, and, upon acceptance by the banks, releases the funds to the merchant account for payment.
Who Can Benefit From Using ACH?
- eCommerce merchants
- Property management
- Utility companies
- Government entities
- Health Clubs and Gyms
To get started, submit an online application and an expert payments specialist will contact you shortly to complete the setup and activation of your account.