Why does my bank requires ACH transaction?
I want to open a bank account that requires to:
* Have at least one electronic ACH transaction (credit or debit) post and clear your account per qualification cycle
What is ACH and how do I do that? What might be the risk?
- StephenWeinsteinLv 79 years agoFavorite Answer
ACH is direct deposit of a paycheck, social security benefit, etc., or certain payments that you make online by giving the routing number and account number to the company that you need to pay.
- A HunchLv 79 years ago
ACH stands for automated clearning house. I don't know why your bank is using the "technical" term.
In regular words it means just an electronic transfer of money
A debit would be direct deposit normally from your pay check but could be from another account at another bank.
A credit would be for you to set up an electronic payment for any kind of bill you might have.
- SumDudeLv 79 years ago
They are just saying they want you to use your account every month, instead of just parking the money there and ignoring it for months. No risk.