ACH
ACH - Automatic Check Handling:
ACH can also mean Automatic Clearinghouse. ACH is a form of e-payment or electronic payment. There are two ways payments can be transferred: By wire transfer, or through an automated clearinghouse. Wire transfer is an e-payment system that is designed to handle high-dollar, time-crucial payments, usually between large banks. ACH is designed to be an e-check or electronic check. Unlike the wire transfer, it is usually used to process higher volumes or small-dollar payments for settlement issues within 1 to 2 business days. All ACH transactions are settled pretty much the same way checks are. The clearinghouse takes all of the ACH files received daily from member banks, it then divides them by the originating bank (where the check was either cashed or deposited) and the paying bank (the bank where the check was drawn), then it totals the accounts, and credits or deducts the accounts accordingly.
History of ACH
The ACH was conceived in the early 1970s, when the increasing volume of paper checks used by businesses and consumers to pay their bills would eventually exceed the ability of the existing computer systems to process and sort the checks efficiently. The Federal Reserve participated in the early discussions and offered to provide the computer systems necessary to process and settle the ACH items between the depository institutions. In 1974, the regional ACH associations formed NACHA to coordinate the establishment of rules to facilitate the nationwide clearing of ACH payments. The National Automated Clearing House Association (NACHA) develops the rules and standards about ACH transactions.
Bank Drafts
Bank Draft - Paper Drafts & Pre-authorized Drafts :
Banks Drafts are an alternative for Merchants that would like to accepts checks as payments over the phone but are a not a candidate for ACH. These candidates are call centers, or companies that have excessive returns and / or chargeback's.
Advantages of Bank Drafts: :
Banks Drafts are an alternative for Merchants that would like to accepts checks as payments over the phone but are a not a candidate for ACH. These candidates are call centers, or companies that have excessive returns and / or chargeback's.
Cost Effective: Transaction costs are comparable to the costs of ACH fees.
Flexible: Transactions can be transmitted via batch or as individual transactions through a Virtual Terminal in real time.
Dedicated Customer Service: We have dedicated resources to achieving the highest levels of customer service.
We offer Telephone Checks, Internet Checks & Recurring Debits:
Telephone Checks : Provide Bank Draft origination for telephone check transactions that may be prohibited by NACHA rules.
Internet Checks: Bank Draft origination for internet sales.
Recurring Debits : Recurring Bank Draft Debits for merchants that would like to collect payments from regular customers and clients.
