An ACH credit is a type of electronic funds transfer where money is "pushed" from one account to another through the Automated Clearing House (ACH) network.
Understanding ACH Credit Payments
ACH credits involve the originator actively sending money. According to provided information, this happens when someone instructs the ACH network to "push" money from their account to another account. This is the defining characteristic.
Common Examples of ACH Credits:
- Payroll Deposits: Employers often use ACH credits to directly deposit employees' paychecks. This is frequently facilitated through payroll processing partners.
- Government Payments: Government agencies use ACH credits to disburse payments like social security benefits or tax refunds.
- Vendor Payments: Businesses use ACH credits to pay their suppliers or vendors.
Key Aspects of ACH Credits:
- Initiation: The payer (originator) initiates the transaction.
- Direction: Funds move from the payer's account to the payee's account.
- Network: The ACH network facilitates the transfer.
| Feature | Description |
|---|---|
| Direction | Funds are "pushed" from the sender's account to the receiver's account. |
| Initiation | The sender initiates the transaction. |
| Common Uses | Payroll, government payments, vendor payments. |
In essence, an ACH credit is like sending money electronically directly from your bank account to someone else's.
