Ach Processing – A Secure And Efficient Financial Framework Posted By: Troy Truman
ACH Processing is a means through which financial transactions take place in the United States. Some of the transactions that happen under this umbrella are electronic payments, direct deposits, debit card payments, insurance premiums and mortgage payments. It is also used in the business industry for payments between businesses and for some governmental transactions. The acronym stands for automatic clearing house. In its simplest terms, it can be thought of as connection system for banks. It is a way for funds to go from point A to point B in a safe, effective and efficient manner.
ACH processing began in the seventies. It was developed as a way to process payments other than through typical check writing. A group of heavy hitters in the financial arena came together to serve as its clearing house. Some of these organizations included, and continue to include, the Federal Reserve, the American Clearing House Association and Visa. The Federal Reserve is the member that serves as the primary transaction facilitator. An evolution has occurred since its inception. What was once simply an alternative to check writing now processes billions of dollars worth of electronic transactions.ach processing electronic payments direct deposits
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