“ACH” Posts

How Does ACH Payment Processing Work?

How Does ACH Payment Processing Work?

ACH payment processing operates via the ACH network. Every ACH transaction goes through a seven-step process involving six ACH payment processor entities. These entities include the originator, the receiver, the originating depository financial institution (ODFI), the receiving depository financial institution (RDFI), an ACH operator and the National Automated Clearing House Association (NACHA). Below, we define each entity involved and the technical steps to ACH payment processing. ACH Payment Processor Entities Originator: An individual, corporation or other entity that initiates a transaction using the ACH network. Receiver: An individual, corporation or other entity that receives an ACH payment. ODFI: A financial…

How to Receive ACH Payments With PayJunction

How to Receive ACH Payments With PayJunction

Welcome to PJ University, where we teach you how to use PayJunction like a pro. Today’s lesson is how to run echeck payment processing. How to Receive ACH Payments After logging into PayJunction, the process page will automatically load; but if you happen to be on another page, just click “Process” from the menu on the left. On this page, select the “E-check” tab in the top menu. Enter the routing and account number on the check. Next, select the account type and transaction type. PPD is generally for personal transactions and CCD is for business transactions. Next, enter…

4 Tips On How to Set Up ACH Payments

4 Tips On How to Set Up ACH Payments

ACH payments, in which funds are drawn from a customer’s bank account over the ACH (Automated Clearing House) network, offers some distinct advantages over processing paper checks. Specifically, ACH payments can save you both time and money. While ACH seems simple, the underlying processes are actually somewhat complex, involving a seven-step process with six different entities. These entities include the Originator – the person or entity who initiates the transaction; the Orginating and Receiving Depository Financial institutions (two separate entities); ACH operators and receivers. As you might imagine, the communication and coordination of funds across so many parties is a…

5 Tips and Tricks On How to Receive ACH Payments

5 Tips and Tricks On How to Receive ACH Payments

If you accept payment via check, there are some compelling reasons to switch to ACH processing over traditional paper checks. ACH, which stands for Automated Clearing House, still draws on bank account funds, but this method of payment offers some key business advantages. Specifically, compared to paper checks, receiving payment via ACH can save time, money and is kinder to the environment at the same time. If you’re new to receiving ACH payments, here are five tips and tricks to make the process smooth and hassle free. Tip No. 1: Look For A Solution That Works With Your Other…

The True Cost of Paper Checks

The True Cost of Paper Checks

Estimates suggest your business could be spending $24,540 annually just processing paper checks. Since 1865, checks have played a pivotal role in the United States payment system. Checks were the only non-cash option for the first 100 years of its existence, until credit cards were introduced in the 1950s. As payment technology has evolved, the need for checks has diminished — but the costs have remained. Here are three ways paper checks could be costing your business more than you realize: Money – According to NACHA, it costs on average $1.22 to process a paper check, which accounts for manpower…