ACH Direct Debit

An ACH payment is an electronic bank-to-bank transfer processed through the Automated Clearing House (ACH) Network, which moves money between bank accounts in the US. It lets merchants collect funds directly from a customer’s checking or savings account, either for one-time or recurring transactions.

ACH payments are initiated when a customer authorizes a merchant to debit their bank account for the purpose of payment. This authorization, collected online in compliance with ACH Operating Rules, grants the merchant permission to withdraw funds directly from the customer’s checking or savings account.

ACH payments typically settle within 2–3 business days, though this can vary.