What is ACH and Why Does Your Business Need It?

ACH is an electronic payment system used to move money from one bank account to another

What is ACH?

You may have heard of the term ACH, but what is it? ACH stands for Automated Clearing House. Automated Clearing House is part of an electronic payment system used to move money from one bank account to another. Transactions consisting of debits and credits can be moved through business-to-business (B2B), government and consumer transactions.

This network was set up in 1974 by Nacha, a business that monitors the ACH network to ensure money is safe, secure and it is moved efficiently. To process ACH payments, banks, or the originator, send payments to a clearinghouse. Once the payment is processed, it is sent electronically to the recipient. This is known as pushing and pulling money. The money is pulled from the originator’s account and pushed into another account.

What is ACH Used For?

Annie Bertram, Coulee Bank’s Treasury Management Manager (AAP), says, “ACH is an effective tool for business customers. It can change the day-to-day functions in ways you may not anticipate.” Because it takes longer to send checks in the mail, ACH can move money on the same day with a click of a button. Plus, she says, sending checks means you are sending your bank account number and routing number through the mail which can expose any business to fraud.

Bertram says, “Coulee Bank’s ACH product is competitively priced and is less expensive than mailing checks. You don’t need to pay staff to stuff envelopes or pay for postage. Instead, businesses can start a direct payment transaction using the ACH network via debit or credit.”

Examples of ACH transactions are payroll, accounts receivable, accounts payable, and vendor payments. These types of payments are quick, easy, and efficient.

How Coulee Bank’s Treasury Management Department Can Help You?

The Treasury team provides thorough onboarding with every new ACH Originator. This onboarding ensures your business utilizes ACH to its maximum potential. Coulee Bank offers dual control, same-day ACH, and many alert options to help combat potential fraud. Our goal is to make your business as efficient as possible.

Coulee Bank has multiple accredited ACH professionals on staff. They are here to assist with any potential questions or problems that arise. Bertram and her team can provide one-to-one training and help get your business set up with ACH Origination capabilities. During the training, the Treasury team helps get you comfortable with the platform and makes sure you have multiple points of contact for any follow-up questions.

For more information regarding ACH Origination, contact treasury@couleebank.net.