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.

ACH Payment Processing with BillingTree

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:

Main 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.
  • 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.

ACH Payment Processing Journey

It’s Friday! You know what that means, it’s payday! When you have your paycheck automatically deposited into your bank account, that’s ACH in action! See, you’re already an expert. Online bills are amazing because you don’t have to waste time writing or mailing a check. Nowadays, people set up their mortgage, car, student loans, and more as automatic recurring payments.

Even if you’ve never heard the term ACH before, you’ve certainly benefited from the convenience it provides. You can see how the Automated Clearing House Network (ACH) is the perfect tool for any business that wants to provide its customers, clients, or patients with the same level of convenience. You just set it, forget it, and never worry about a late payment again.

Advantages of Using an ACH System

  • Direct Deposit
  • Fast
  • Secure
  • Convenient

From credit cards to mortgage payments, an ACH payment system is a fast and secure way to get funds and set up a recurring billing cycle, so you never have to worry about missing a payment.


This payment method passes through fewer hands than a traditional paper check, making it a safer way for you to do business. You don’t have to be a major corporation to offer this level of convenience to your customers, either.

If you’re interested in learning more about setting up an ACH payment system for your business, contact us, or request a free demo below.