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What is ACH?
The ACH Network is comprised of over 12,000 banks and financial
institutions that comply with the national ACH (NACHA) standard
format of transferring funds electronically.
While there are several methods of electronic payments (debit cards,
wire transfers, etc...), the volume of ACH transactions has grown
considerably over the past few years - principally driven by cost
savings - in terms of bank fees, as well as administration
time, fraud reduction, consistent availability of funds and recent
changes in the marketplace.
Many already enjoy the benefits of ACH, with such activities as
Direct Deposit of payroll, and the automatic payment of utility,
mortgage and other recurring obligations.
Applications
With ACH, you can:
• Collect from customers
• Send payments to vendors and governmental agencies
• Send payroll to employees
• Consolidate funds between accounts in different banks
Getting Started
To participate and initiate an ACH transfer, you will need:
· An originating bank (your bank) - Sign up and obtain approval
for the service.
· A software package that enables you to create and transmit the NACHA formatted
file- Treasury Software's ACH Universal™.
· Approval from the customers,
employees and vendors you wish to initiate transactions with.
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