This is my 1st video on this channel
WHAT IS AN ACH AND HOW TO DO IT?
I am only using PAYPAL as an example. This is what happens with most places that will use ACH.
The Payflow ACH (Automated Clearing House) Payment Service permits you to electronically send payments to sellers for either single-entry or recurring payments by directly debiting from your checking or saving accounts.
The most common uses of ACH are on-line bill payment, mortgage and loan reimbursement, and direct deposit of payroll. ACH payments are an economical and cost-reducing alternative to paper checks and credit cards.
The advantages of ACH Payments provide customers and sellers with an alternate to credit cards and checks.
ACH payments are electronic payments that are created once the client provides an originating institution, corporation, or other customer (originator) authorization to debit directly from the customer's checking or saving account for the aim of bill payment.
Customers who select ACH payment must 1st authorize to debit their checking account for the amount due. Authorization must conform to the requirements of the ACH operating Rules and should be either written and signed, or electronically displayed.
When you go to authorize your bank account
to be used.
You will ba asked to give them
your bank ROUTING NUMBER & ACCOUNT
Here in an example.
Today, Payflow ACH Payment supports the subsequent payment types:
Electronic Check - TEL and web payments
Check Conversion - POP, ARC, and RCK payments
Payflow ACH Payment perform the payment in 2 elements. within the Debit/Sale payment example below, the Payflow ACH Payment service 1st moves the cash from your checking account and then moves the cash to the others checking account.
You visit the biller's web site. after your authentication (user name and password), the biller's web server presents the asking info.
Then you review the bill. after you schedule a payment their web site collects the payment info, and using Payflow, securely sends it to PayPal for process on the date specified by you.
PayPal prepares the ACH payment info and delivers it for ACH submission to the originating depository financial institution (ODFI) by electronic transmission over a secure connection. The ACH payments are submitted to the ODFI on the your-specified payment date.
The ODFI processes the ACH payment info and electronically delivers the data to the ACH network operator (Federal Reserve). The ACH network operator electronically distributes the ACH items to the your bank (RDFI).
The federal reserve credits the ODFI's bank account on settlement day for the value of all ACH debits deposited, and debits the RDFI's checking account for the value of ACH items received.
PayPal then initiates a secondary transaction to maneuver the money into the biller's checking account.
Your periodic bank statements replicate ACH payments.
Merchants are notified of ACH payments on their bank statements.
When you authorize A payment you must make sure you have money in your account.
If not you will get overdraft fees depending on your bank.
Now be advised that when you do this there will be a waiting period of up to 3 days to confirm.
The institution you authorize will put in one or two test payments to your bank which will be less than a dollar. After the payments are made you will go to the institutions website to confirm the payments. They will then retake their payments back.
After that when you use the ACH to send your money it will take up to 3 business days for them to get your deposit. Saturday and Sunday is excluded in the business days. It is also the same amount of time to receive money as well.