What is ACH?

ACH stands for Automated Clearing House and it is a network of electronic funding distribution processes run by NACHA, formerly the National Automated Clearing House Association. This payment system was created in 1974 and covers consumer payments, tax payments, direct deposit and many other payment types in the United States.

NACHA is a self-regulating organization that governs the ACH network. The institution’s operating rules are designed to support the growth of electronic payments in its network. Businesses maintain compliance with NACHA by following these operating rules, which include differentiating between types of unauthorized return reasons for consumer debits and outlining the same-day ACH processing window.

How is BillingTree Different?

There are scores of companies out there that process ACH payments. But not all service providers are the same. For example, BillingTree offers the following advantages:

  • Costs for ACH are much lower than paper check processing and credit/debit card processing.
  • By using four ACH banks, BillingTree offers better servicing and quicker transactions
  • Consolidate your payment processing with one provider for simplified reporting and ‘one neck to choke’
  • Because money is transferred between two bank accounts, funding is as quick as one day.
  • There is a lower risk of fraud using ACH because money is transferred directly between banks with no intermediaries or physical items (paper checks/cards).
  • If there are unauthorized payments, there is a 60-day window that the BillingTree banks provide to correct the issues