ACH Direct Deposit is a secure, convenient way to transfer funds electronically through the Automated Clearing House (ACH) network, depositing payments directly into your bank account and eliminating paper checks for faster, more reliable transaction
High-Level Overview of ACH Direct Deposit
- How It Works:
- A payer, such as a business or employer, initiates an ACH transaction through their bank or payment processor.
- The ACH network processes the transaction in batches, transferring funds electronically to the recipient’s account.
- Typical Processing Time:
- ACH Direct Deposits are usually completed within 1–2 business days.
- Common Uses:
- Payroll deposits, vendor payments, government benefits, and tax refunds.
ACH Direct Deposit and PaymentWorks
PaymentWorks is a platform that facilitates the onboarding of vendors and payees for its customers. While PaymentWorks itself does not process payments, many PaymentWorks customers offer ACH Direct Deposit as a payment method during the vendor registration process.
When registering on PaymentWorks, vendors may be asked to provide their bank account details, including:
- Bank Name
- Routing Number
- Account Number
- Account Type (e.g., Checking or Savings)
- Bank Validation Document
This information is securely validated and stored to enable ACH payments from the customer’s system to the vendor’s account.
Benefits of ACH for Vendors
- Speed: Funds are transferred faster compared to checks.
- Security: Reduces the risk of lost or stolen payments.
- Cost-Effective: No postage or check-cashing fees.
- Convenience: Payments are deposited directly into your account.
Important Note
The availability of ACH as a payment method depends on your customer’s preferences and payment program. If you have questions about whether ACH is offered or how to set it up, contact your customer directly for details.
By selecting ACH Direct Deposit during registration, you can streamline payment processes and receive funds securely and efficiently.