ACHPay is an international payment services provider that offer ACH processing technologies and solutions

How ACH Payments Work

There are 4 stages of ACH payment processing. These stages are:

Authorization Stage

The fund transfer stage of ACH payment processing is initiated by the payments Originator which is you, the merchant. The originator is required to receive authorization and customer bank account information before being able to initiate an ACH payment. This request is then processed by ACHPay and our processor bank. It’s at this point where a request is then sent to the customer’s bank for the funds owed.

Fund Transfer Initiation

At this stage an ACH payment request is sent to the customer’s bank in an ACH file, the format of this file adhering to the format specified in NACHA’s operating rules. This request included the amount of money requested, transaction date and a unique transaction number. It’s only possible to process ACH payments once the consent of both parties has been sought and confirmed.

The customer’s bank then reviews the request for authorization sent from the processor bank then decides on whether to accept or decline the transaction request within the set, limited time frame, depending on the transaction type and decline reason, if any.

Primary Fund Transfer

This stage of ACH payment processing is when funds are moved from the customer’s account to the ACH processor’s bank. This stage takes approximately 1-3 business days, however this is typically quicker, being completed overnight.

Secondary Bank Transfer

This stage of ACH payment processing is when the funds are transferred from the bank account of your ACH processor to your company’s account. After the ACH processor bank have analysed the primary fund transfer transaction funds are released and settled automatically into your account. When funds become accessible depends on which bank your account is with, although these will typically clear within 1-5 business days.

Getting started with our ACH processing solution is easy, and starts with getting in touch with us.

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