Internet Merchant Account for ACH and eCheck Services

ACH and echeck services are very similar, both make payments by moving funds from one bank account to another. The two methods are similar enough that some people may use the terms interchangeably. Some situations require receiving payments through both or one of these methods, so it can be important to understand the differences between the two and how payments are processed.

When looking at ACH and echeck services, the biggest differences come between how the payments are made. eCheck payments are transferred through the ACH network and deposited into the business account just like a regular paper check after being authorized by the customer. With ACH payments, businesses can withdraw money from the customer’s account repeatedly with their previous permission. These differences are important for how payments are processed. 

ACH and echeck services are typical in some industries, especially those that have high amounts of payments that need to be made on a schedule, such as mortgage payments or annual fees. With the right kind of account, a business can process payments made through either system for flexibility in payment methods for businesses and customers. Payments can also be processed quickly and securely.

ACH Services

ACH stands for Automated Clearing House, and, as the name implies, payments can be withdrawn automatically from the payer’s account to the payee’s bank account. These payments don’t have to be authorized by the payer each time. Instead, a contract or another agreement between the customer and the business permits the ACH payments to be withdrawn in a manner that is in accordance with the agreement. ACH payments can be processed within the same day.

Echeck Services

The main difference between ACH and echeck services is that echeck payments are deposited just like a regular paper check. Echeck functions as a check but instead of the payer writing a paper check, they authorize the payment to be made online. The same information is transmitted with an echeck payment that is with a paper check, and the process unfolds just as if a paper check had been deposited.

Whichever method is used, payments can be electronically transferred quickly and securely. From the authorization of the payment to the payment confirmation, customers and businesses can know that the payment will be processed efficiently.

Conclusion

ACH and echeck services have some similarities and are made over similar payment systems, but they have different methods of processing payments. ACH does not require an initialization from the payer for every payment, and instead may use a contract or other agreement to authorize recurring payments. eCheck payments require authorization before every payment as the electronic version of a check.

To find out more about ACH and echeck services or to sign up for an internet merchant account, you can visit Charge.com or call (888)924-2743. No matter what you sell or how you sell it, Charge.com can help your business grow and succeed.