ACH: The easy,
automated way to pay.
Often called direct pay or electronic checks, Automated Clearing House (ACH) transactions are used in all kinds of situations — from employers direct depositing wages to consumers electronically paying utilities.
A fast and reliable alternative to paper checks and credit card payments, ACH allows your customers to set it and forget it — no more worrying about sending funds on time. The convenient payment method also streamlines and automates your accounting, resulting in savings that can be significant.
What is ACH?
Electronic ACH payments go through the Automated Clearing House Network. Money is moved from one institution account to another with the help of a centralized system that directs funds to their final destination. These electronic payments provide benefits to both merchants and customers.
Why everyone likes ACH
Low Cost
ACH is the most cost-effective method for the electronic transfer of funds. Automation increases cash flow and can lead to big savings — especially when collecting recurring payments.
Faster Payments
ACH eliminates paper invoices, paper checks, delays due to bounced checks and time-consuming trips to the bank.
Reduced Retention
Checking accounts don’t have credit and debit cards that expire, so merchants see less chum and fewer declines.
Fewer Interruptions
With recurring billing, busy customers don’t have to constantly keep an eye out for incoming bills or take action when payments are due — everything runs on autopilot.
How it works
Customer is billed
Customer initiates payment by providing authorization and necessary financial institution information to the merchant
ODFI (Originating Depository Financial Institution) debits the customer’s account and sends the ACH file to the Federal Reserve System
The Federal Reserve routes the ACH file to the receiving bank or depository financial institution (RDFI)
RDFI processes payment
Payment clears and the merchant has access to the funds
ACH vs. Credit Card
Direct Deposits
Includes all deposit payments — payroll, employee expense reimbursement, interest payments, utility bills, government benefits, taxes and other refunds.
Direct Payments
Covers the use of funds for making payments, either by individuals or organizations.
Solo or suite
ACH is a stand-alone product offered by Heartland, but also a payment functionality included in:
Online Payments
Service Professionals
Bill Pay
School Solutions
TouchNet
