what is an ach transaction

An ACH transaction is an electronic transfer of funds from one bank account to another over the Automated Clearing House (ACH) network. The ACH network is a US-based network that covers the US Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands. ACH transfers are used for many purposes, such as direct deposits of paychecks, debts for regular payments, and money transfers. There are two main categories of ACH transactions: direct deposits and direct payments. In an ACH direct-payment transaction, the person sending the money sees an ACH debit appear in their bank account, while the person or entity receiving the money registers it in their bank account as an ACH credit. ACH transfers can be credited the same day, the next day, or within two days for speedy processing. To conduct an ACH transaction, you will need to provide your banks routing number and your account information.