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What does payment method ACH mean?

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Quick Answer

An Automated Clearing House Network, or ACH, payment method involves electronic payments that use a clearinghouse. This method encompasses payments through direct deposit and making electronic payments from a user’s checking account. In comparison to traditional payment methods such as paper checks, the ACH method is faster and more cost-effective.

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Full Answer

Users commonly use the ACH payment method to pay for a service, move funds between banks or deposit money to an employee’s account. This method is beneficial to businesses because it typically costs less to process an ACH payment than a credit card payment. Users utilize this method through the banks that house their business contacts or companies that already process credit card payments for them.

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