Using ACH network to clear E - checks and EFT payments
With the rising number of frauds it is not safe anymore to use credit cards on the internet for electronic funds transfer. These days? eCommerce operators permit payment options where the purchase done by an individual is deducted directly from the bank account of the customer. These options are available on the basis of the Automated clearing house or ACH banking network. For ACH processing the concerned bank needs to be a member of the ACH network.
Most banks in the US are a part of the ACH network. According to a survey almost 3.1 billion checks were passed using ACH processing in 2007. ACH Processing is very useful while transacting eChecks. Both business and consumers are benefited thanks to e checks. Businesses, who offer this service can save on cost, keep track of their funds and check on balances easily. At the same time, consumers can benefit from eChecks by using them to clear payments on the phone or internet. EFT Payment or Electronic funds transfer payment is also another form of electronic payment to replace paper checks. When we instigate an online payment for debt, the bank which has been instructed for this EFT payment will credit the payment to the concerned institution. This way all payments will be made on time month after month.