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Automated Clearing House (ACH) is one type of EFT that processes payments in batches through the ACHNetwork. EFT and ACH offer more security and convenience than cash and checks, but they also come with limitations. Interconnecting 10,000 US banks and credit unions, this network continues to receive high demand.
It’s also perfect for businesses with a subscription-based (recurring payments) sales model. But while ACH transfers are cost-effective, long processing times that typically take 1-3 businessdays may make it unsuitable for certain transactions.
ACH transfers, or payments made through the Automated Clearing House network, account for billions of dollars in payments annually. In fact, NACHA, the nonprofit that governs the ACH payments network reported 6.1% The average consumer commonly uses the ACHnetwork for automated bill payments and larger transactions.
The National Automated Clearing House Association (NACHA) governs the ACHnetwork, setting rules and standards for ACH transactions. ACHprocessing fees are charges for processing electronic payments and transfers between bank accounts. flat fee whether it processes a $100 or a $10,000 transaction.
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