Why does my bank requires ACH transaction?

Question

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?

Answer 1

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.

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Answer 2

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.

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Answer 3

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.

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