What is an ACH Debit?
ACH debit is a type of electronic funds transfer that allows businesses and individuals to withdraw funds from a bank account. The Automated Clearing House (ACH) network is used to transfer the funds, which are typically used for recurring payments, such as utility bills, mortgage payments, and insurance premiums.
ACH debits are a convenient and cost-effective way to make payments, as they eliminate the need for paper checks and postage. They are also more secure than paper checks, as they cannot be lost or stolen in the mail.
To initiate an ACH debit, the recipient must obtain authorization from the account holder. Once authorized, the funds are transferred from the account holder's bank account to the recipient's bank account within a few business days.
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