Anonymous
Anonymous asked in Business & FinancePersonal Finance · 9 years ago

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?

3 Answers

Relevance
  • 9 years ago
    Favorite 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.

    • Login to reply the answers
  • 9 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.

    • Login to reply the answers
  • 9 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.

    • Login to reply the answers
Still have questions? Get your answers by asking now.