What is an ACH Debit?

What are ACH Debits?

ACH Debits are a type of electronic transaction in which funds are withdrawn from a consumer’s bank account through the Automated Clearing House (ACH) network. This process allows businesses to collect payments directly from customers’ accounts, typically for recurring transactions such as subscriptions, utility bills, or loan payments.

In transactions that are ACH debits, the originator (usually a business) initiates the transfer, and the customer’s bank processes the request, transferring the specified amount to the originator’s bank account. ACH Debits are widely used due to their efficiency, cost-effectiveness, and security, making them a popular choice for both businesses and consumers looking to automate payment processes.

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Synonyms:

Automated Clearing House Debit
Electronic Debit
ACH Withdrawal
Direct Debit
Bank Debit
ACH Transaction (debit)
Electronic Funds Transfer (EFT) Debit