Transactions in the Automated Clearing House Network

Nyi Mas Dhyandra Nur Annisa, 2401989770

Transactions in the Automated Clearing House Network (ACH) can be divided into two:
– Credit
– Debit
Credit transactions initiated by the payer, for example, the customer of an electronic company, convey to his bank his account number in the electronic company along with the deposit and bank account number of the electronic company. Every month, the customer bank will make an ACH credit transfer to the electronic company’s bank.
In debit transactions, the payer has permission for payment but the payment is initiated by the payee. In this case, the payer signs a form to authorize payments to be made each month.

References
Lake, R. (2017). How do ACH payments and ACH networks work?
McAndrews, J. (1994). The Automated Clearinghouse System: Moving Toward Electronic Payment.
Silitschanu, P. (n.d.). Automated Clearing House (ACH) Transfers: How Do They Work?