ACH payments are electronic payments made through the Automated Clearing House (ACH) Network. Using ACH payments can help reduce errors, speed things up, and save resources. Because they’re electronic, ACH payments use fewer resources (paper, ink, fuel to transport checks, etc). In addition, ACH payments make it easier to keep track of finances. Instead of generic check information on a bank statement, you see the other party’s name if you’ve used an ACH payment. Then it’s easier to categorize the transaction with your financial software.
ACH payments can be electronic from start-to-finish, or they can happen when a paper check is converted and processed electronically.