Authorization For Direct Deposits (Ach Credits: Fill & Download for Free

ACH is used for direct deposit.There are different types of ACH transactions. These include (in the terminology I’m familiar with):ACH external transferACH direct debitACH direct depositYou see these used as follows:ACH external transfer: You transfer funds from an account at one bank to an account at another bank; generally, you are expected to be a signatory (owner) on both accounts.ACH direct debit: You authorize a merchant (e.g. your phone company) to debit the payment due from your bank account. This may also be used for the “online billpay” service.ACH direct deposit: Your pay or government benefit is deposited directly into your bank account.

Automated Clearing House (ACH) is an electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit, payroll and vendor payments.You can visit PayPal website whcih link is mentioned below for more in-depth information about ACH.Benefits of ACH PaymentsFollowing are the benefits of ACH PaymentsProvide your customers with an alternative to credit cards and checks.Offer lower-cost payment than either checks or credit cards.Faster payments than using checks.How Does ACH Work?ACH payments are electronic payments that are created when the customer gives an originating institution, corporation, or other customer (originator) authorization to debit directly from the customer's checking or saving account for the purpose of bill payment.Customers who choose ACH payment must first authorize you to debit their bank account for the amount due. Authorization must conform to the requirements of the ACH Operating Rules and must be either written and signed, or electronically displayed. See Home | NACHA for more information.Today, Payflow ACH Payment supports the following payment types:Electronic Check - TEL and WEB paymentsCheck Conversion - POP, ARC, and RCK paymentsAbout ACH Payments Automated Clearing House - Wikipedia What is an ACH Payment?IRD PAYMNETS:_You can visit this also for more in-depth info about IRD payments Making payments (Find out about)P.s :- Specially in India, we have so many awesome payment companies who are doing tremendously great and evolving the new technologies for cutting edge future in payments. Hope this helps.

Lets talk about the accounting terms debit and credit. Generally, double-entry accounting views every transaction as an exchange of an asset for an equal liability. When you walk into a bank and deposit $100 cash into your checking account, the bank will debit its asset account (cash) $100 and credit its liability (your checking account) $100. While funds in the checking account are an asset for you, they represent a liability for the bank because it owes you whatever amount is in the account.So from your point of view, an electronic deposit is the equivalent of you walking into the bank to deposit money. However, the “electronic” transaction is done through the Automated Clearing House (“ACH”). ACH classifies its transactions as ACH Debit or ACH Credit based on how the transaction is entered on the account that initiates it.ACH Credit pushes money from an asset account to pay it to someone else. Reducing an asset account is entered as a credit for accounting purposes. When you go into your checking account and pay a bill electronically, you have initiated an ACH Credit transaction. When the IRS does a direct deposit of your tax refund, it has initiated an ACH credit transaction (the IRS’ bank credits the IRS checking account and your bank debits your checking account).So, “electronic deposit” is not really the correct term. It may informally be referred to as a direct deposit or using banker-speak as an ACH Credit transaction that causes you bank’s bookkeeper to debit your checking account because of the electronic transaction.When you decide to set up electronic bill payments, you usually have two choices. You may go to your bank and push money out of your checking account to whomever you owe money to (ACH Credit). Or, you can go to your utility, loan company, etc. and authorize them to pull money out of your checking account every month. When the utility or loan company receives the money it is debited to their bank account, so it is called an ACH Debit transaction.If you owe the IRS money, one of the ways to pay it is to go onto the IRS website and give them your bank account information and tell the IRS how much you want to pay. You have just authorized the IRS to initiate an ACH Debit transaction.What is ACH Debit & ACH Credit?