Although you may not be familiar with the term ACH processing, it is probably something most people use on quite a regular basis. This type of processing is what allows people and businesses to transfer money from one bank account to the next. There are quite a few different purposes for which this type of processing can be used.
The Kids
Your baby just left the house for their first year of college. You can hardly believe they are old enough and you lay awake at night sick with worry. What if they run out of money? ACH processing makes it so you can take care of your kids, even from far away. Even if you have a separate bank account, you can electronically transfer funds from your account to theirs. This could be to help them pay the rent and other bills. It could help cover tuition. It can even be a great way to give them some spending cash for a birthday or job well done. This makes your child feel great and puts your mind at ease.
The Paycheck
Not too long ago everything was done with paper. Your paycheck came in the mail, and you had to drive to the bank and fill out your deposit before you saw the money. However, this process is much more convenient nowadays. All you have to do is authorize your employer to deposit that paycheck into your account each pay period. This is known as direct deposit. All they need is your bank's routing number and your bank account number. This does not enable them to make any transaction besides depositing your paycheck into your account. This is convenient and hassle free.
The Bills
Paying bills this way might just be the biggest perk of all. Getting all of those bills in the mail, sorting through them, writing checks, and then mailing them back is such a pain! It can be stressful to organize, and even when you're on top of it the pile of paperwork is very overwhelming. With ACH processing, you can now set up automatic bill pay and be totally paper free when it comes to paying your bills. Like the direct deposit, you give minimal information, and the amount of the bill is debited from your account on a monthly, quarterly or yearly basis, depending on how often the bill occurs.
In all reality, ACH processing is a great way to save time and money. It is set up for your convenience and is very safe to use.
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