ACH transfers are electronic, bank-to-bank money transfers processed through the Automated Clearing House Network. ... Direct payments involve money going out of an account, including bill payments or when you send money to someone else. ACH transfers are convenient, quick, and often free.
What is an ACH bank transfer?
An ACH is an electronic fund transfer made between banks and credit unions across what is called the Automated Clearing House network. ACH is used for all kinds of fund transfer transactions, including direct deposit of paychecks and monthly debits for routine payments.Aug 27, 2020
What is a ACH debit payment?
An ACH debit is a type of ACH transfer where funds are pulled from a bank account. ... For example, when an individual sets up a recurring monthly payment for a mortgage or utility bill, an ACH debit would be used and their bank account would be debited automatically.
Is ACH same as direct deposit?
The broad difference between Direct Deposits and ACH debits is that the former have funds being pushed into an account, while the latter have funds being pulled out of an account.
What does ACH direct deposit mean?
Automated Clearing House (ACH) is an electronic network for financial transactions in the United States. ... ACH credit transfers include direct deposit, payroll and vendor payments. ACH direct debit transfers include consumer payments on insurance premiums, mortgage loans, and other kinds of bills.