Pay With ACH from the Comfort of Your Home or Office

Apr 5, 2023 | ACH

Zil is a financial technology company, not a bank or an FDIC member. Zil offers banking services through partnership with FDIC member banks Silicon Valley Bank, Texas National Bank, and East-West Bank.

Pay with ACH (Automated Clearing House) has become an increasingly popular payment option, allowing individuals and businesses to transfer funds electronically between bank accounts. ACH payments offer several advantages over traditional payment methods. Zil provides the best and easy way to pay with ACH from the comfort of your home or office. Keep reading to know more about ACH and Zil.

What Is an ACH Transfer? 

When you transfer money from one bank account to another, you use the Automated Clearing House network. ACH transfers are a type of electronic payment. They are frequently used to make direct deposits or pay bills automatically. Transactions are processed in batches three times per day by the Automated Clearing House Network. This means that the time between sending and receiving money is shorter than other methods.

Types of ACH Money Transfers

There are two types of automatic clearing house payments. Both of these processes are essentially the same, but they differ in terms of cost and speed. These are their names:

ACH credits:

For an ACH credit to be made, both the payer and the recipient must agree. The exchange must be approved by both the party making the payment and the party receiving the funds to be valid. Once both sides of the authorization have been completed, the transaction can be completed by hand or easily set up as a recurring payment.

ACH debits:

An ACH debit removes money from the account being paid. This means that the person receiving the money initiates the payment (the payee). Businesses commonly use this method to collect debts. These companies may use the terms “autopay” or “ACH” interchangeably with “ACH debit.”

Same Day ACH

In 2015, NACHA decided to reduce ACH processing times. Until then, processing ACH transfers typically requires two to five business days. The governing body voted to proceed with a campaign called “same-day ACH” after years of lobbying by customers and industry experts.

What Is Required for an ACH Transfer?

If you have the necessary information, making an ACH money transfer is simple. To make an ACH money transfer, you must provide the following information:

  • Name.
  • Routing/ABA number.
  • Account number.
  • Bank account type (business or personal).
  • Transaction amount.

How to Pay With ACH?

To pay with ACH, you will need to provide your bank account information to the party you are paying. Here are the steps to follow:

  • Obtain the recipient’s bank account information, which mentioned above.
  • Log in to your bank’s online banking system or visit your bank in person.
  • Select the option to initiate a transfer or payment.
  • Enter the recipient’s bank account information, including the routing number and account number.
  • Enter the amount you want to transfer or pay.
  • Confirm the details of the transaction, including the recipient’s bank account information and the amount to be transferred.
  • Submit the transaction.

Once the transaction is submitted, the funds will be transferred from your bank account to the recipient’s bank account via the ACH network. The ACH payment process typically takes 1-3 business days to complete, depending on the banks involved in the transaction.

How to Make ACH Transactions with Zil? 

You need to open a business checking account with Zil to make ACH transactions. 

  • Step 1: Log in to Zil and choose a cloud bank account. 
  • Step 2: Click on the Send Payment button and select ACH from the drop-down menu. 
  • Step 3: Select a contact, add the amount you want to send, add the payee’s bank account details, and click Send.  

ACH transactions usually take 1-2 business days. Zil offers same-day ACH transactions that allow the transaction to be completed on the same day it is initiated.

ACH vs Direct Deposit

ACH (Automated Clearing House) and direct deposit are both electronic payment systems used to transfer funds between bank accounts. While they are similar in some ways, there are some key differences between ACH and direct deposit.

ACH is a payment system that facilitates electronic fund transfers between banks. It can be used for various transactions, including direct deposit, bill payments, and person-to-person payments. Another difference is that the sender must obtain authorization from the recipient before initiating the transaction.

On the other hand, direct deposit is a type of ACH transaction used specifically for payroll and government benefit payments. With direct deposit, an employer or government agency can deposit funds directly into an employee or beneficiary’s bank account, eliminating the need for paper checks.
One of the main differences between ACH and direct deposit is the purpose for which they are used. ACH can be used for various transactions, while the direct deposit is limited to payroll and government benefit payments.

Pay with ACH are a convenient, reliable, and secure payment method that can be used for various transaction purposes. Whether paying rent, bills, or purchasing, ACH payments offer several advantages over traditional payment methods. If you are looking for the best platform for making ACH payments, look no further than Zil. We provide you with the best ACH payment experience.

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