What is an ACH Credit?

What are ACH Credits?

ACH credits are a type of electronic payment that allows funds to be transferred from one bank account to another through the ACH network. This method is commonly used for direct deposits, such as payroll, tax refunds, and other payments where money is sent directly to a recipient’s account.

When a transaction is initiated, the sender’s financial institution debits the amount from the sender’s account and credits it to the recipient’s account, typically on the same business day. ACH credits are favored for their efficiency and low transaction costs, making them a popular choice for businesses and individuals alike.

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Synonyms:

Direct deposit
Electronic funds transfer (EFT)
Bank transfer
Credit transfer
ACH payment