One more question How Does ACH transfer work?

I mean isn't it automatic?

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  • 1 decade ago
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    ACH stands for Automated Clearing House. It's a system operated by the Federal Reserve Bank to facilitate the transfer of funds from one bank account to another. Each account is identified by a routing code that identifies which Federal Reserve Bank the bank is under and an account number that identifies the depositor's account.

    Once a transfer of funds is released into the system it flows more or less automatically. Normally the only time that manual intervention is required is on the receiving end if the name on the transaction doesn't match a name on the account or on the sending end if the receiving account number is incorrect. Either issue triggers an item reject that normally requires manual intervention.

    On the receiving end if there is a name mismatch it is reviewed by a human to see if there has been a misspelling or other issue that would warrant accepting the transaction. If there's a reject for an invalid account number, most banks automatically reject the payment.

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  • 1 decade ago

    Mine alway has been my bank handles it like a payroll deposit

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