ACH Payment Key Terms

Familiarize yourself with ACH payment key terms

Automated Clearing House, or ACH, payment is a widely used, computer-based way to receive payments. ACH payment companies allow you to receive multiple types of payments, from recurring payment to cross-border payments. Learn ACH key terms to discover what features your company needs in ACH payments. When shopping for an ACH there are some key terms you may need to review. These key terms are words or phrases commonly used by ACH payment companies to describe their services.

 

Electronically cleared payment

With an electronically cleared payment, the available funds are verified immediately to ensure the payment clears the bank. These payments are conducted through a federal reserve by way of a another bank.
Try: CBS Interactive provides more information about electronically cleared payments and automated clearing houses.

Electronic payment processing

Electronic payment processing is when credit cards and other payments are accepted over the Internet. Electronic payment processing companies handle all the charges and payments, and deposit payments into your bank account.
Try: West Wind Technologies supplies a detailed description about how electronic payment processing works. Read more about electronic payment processing at Vertical Web Media.

Disbursement

A disbursement is the payment of a cash or check to reimburse an employee or client. A disbursement can also be used to pay a number of other bills. Disbursements through ACHs can also be included in payroll.
Try: Read more about disbursements at DefenseLINK. HJ Ventures provides more information about disbursements.

Recurring payment

A recurring payment is a regular payment, such as an electric bill, insurance or other bill that is paid in a specific interval. Recurring payments are normally a set amount, but fluctuating amounts can also be considered recurring payments.
Try: AllBusiness.com provides detailed information about recurring payments. Find descriptions of recurring payments at SAP.

Payment collection

Payment collection is a service offered by many ACH companies. With payment collection, the hired company handles all late or non-payment problems that your company might have.
Try: Drishti provides more information about payment collection services.

ACH cross-border transfers

ACH cross-border transfers include when a company handles international transactions for you. This includes special charges and exchange rates. Cross-border transfers often allow you to receive the money faster than any other international transfer option.
Try: Visit Bnet to discover more about ACH cross-border transfers. Federal Reserve Banks provides information available on cross-border ACH services.

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