ACH (Automated Clearing House)

Overview
ACH is an electronic funds transfer system that uses the US Federal Reserve and the Electronics Payment Network as a central clearing facility. The system was created in the 1970s as a partnership project between private institutions and US government agencies, including the US Treasury. The system runs on the policies set in the NACHA Operating Rules and is considered a highly reliable and secure method of making payment in various forms.

Why Use ACH?

Varied: For anyone looking for a payment method that allows them to pay in numerous formats and for different services, the ACH system should certainly fit the bill. Customers can use ACH to make business-to-business payments, pay for internet goods and services, pay by e-check, make local, federal and state payments, use the system’s Direct Payment service whereby consumer bills can be paid and, finally, to receive Direct Deposits of tax refunds, government benefits, etc.

Secure: Not many online payment systems can claim to have the backing of the US Federal Reserve and ACH is extremely popular for this reason alone. As the system is the direct result of collaboration between private and government bodies, all parties have taken the necessary steps to ensure that everything works at the highest level of security and that customers’ information is always kept private and protected.

Strong Network: NACHA is the representative body of over 12,000 financial institutions through direct memberships and networks. The rules governing the way ACH operates were determined by NACHA and this body provides a strong backing for the network.

Convenient: Using ACH means that customers can do away with the usual paperwork involved in make payment, such as writing checks and mailing them. In addition, using ACH means that customers can plan their finances better as they don’t need to bother about mail delays, stolen checks and other inconvenient hassles.

Casino Friendly: Many online gamblers choose ACH as a method of payment when playing online because of the simplicity and security. ACH casino payments are usually made through a third party processor.

Conclusion
Automated Clearing House is definitely first choice among customers who are looking for a system that has the backing of a larger, established government-related organization. This fact, combined with the convenience and flexibility of the service, means that ACH remains a firm favorite in the industry.