The ACH origination service is an electronic funds transfer system using the Federal Reserve's Automated Clearinghouse (ACH). This cost-effective system is designed to transfer funds between banks. Using this service for payroll and bill collection gives you the financial control you need to run your business efficiently and successfully, while providing a great benefit for your employees and customers.
Direct deposit electronically deposits funds into one or more accounts at the financial institutions of your choice.
- Reduce Costs - Fewer checks to buy, lower account charges and no distribution costs
- Improved efficiency - Eliminates time required to print and sign checks
- Increases reliability and security; thus, eliminating reissuing of lost or stolen checks
- Provides employees with convenience - Funds are available on a timely basis
- Reduces banking time for employees
- Minimizes time spent on account reconciliation
- Improves cash management and enhances forecasting of cash flow
- Less expensive - Most financial institutions charge less for ACH transactions than paper transactions
An electronic draft for customer payments is an ACH debit file. The business account is credited and the customers account is debited.
- Improves receivables for businesses
- Eliminates postage, envelopes and other administrative expenses
- Time is saved by eliminating deposit tickets and trips to the bank
- Reduces second notices and collection work
- Customer relations are improved by providing them with a convenience - they do not have to sit down and write a check.
The ACH service allows collection and disbursement of funds and information between corporations or a corporation's account.
- Postage and administrative costs are reduced because fewer checks are prepared and sent through the mail
- Uses less check stock
- Time is saved by not writing checks and reconciling accounts
- Improves control of disbursements
- Cash management is much better - no need to allow time for mailing payments
- Eliminates float