ACH is part of your daily life and you may not even realize it.
When you go online to pay a bill such as your car payment, mortgage payment or power bill and the funds go out without you needing to send a paper check, that is an ACH transaction. If you wake up on Friday morning and your employer has automatically deposited your paycheck into your bank account, that is an ACH transaction. If you received an electronic deposit from the IRS this year for your stimulus payment, you are already using ACH.
Are Wire Transfers and ACH the same thing?
While both ACH and Wire Transfers quickly move funds from one bank to another, they differ in a few ways. First and foremost is the cost. ACH is generally a much more cost effective way to move funds and allows you to process multiple transactions to multiple accounts and financial institutions in one file, or batch. A flat fee is charged for the batch as a whole, with a small additional charge for each entry in the batch. Wire Transfers require each transaction be conducted separately which results in a higher fee per transaction.
Can I use ACH to pay my employees each week?
YES!!! Using Meadows Bank’s ACH origination, our business customers can submit a file online each week to pay their employee’s electronically. Funds will be automatically credited to each of your employees bank accounts on payday, no paper checks required, no risk of checks getting lost in the mail, no more placing stop payments and reissuing checks, and you are vastly decreasing your risk of check fraud occurring as a result of misplaced checks.
Am I able to use ACH to debit property owners and vendors each month?
Absolutely!! ACH origination is not only for sending money, it also allows you to debit funds from external accounts with authorization from the account holder.
Is ACH right for my business?
Call us today and find out!