Automated Clearing house (ACH)

The ACH network electronically moves money from one US bank account to another, facilitating electronic payments and money transfers for businesses and consumers.

1. Processing Time: ACH transactions are processed in batches three times a day, typically taking three to five business days to complete.

2. Governance: Nacha, formerly known as the National Automated Clearing House Association (NACHA), oversees the ACH network, ensuring security and compliance.

The ACH system involves various financial institutions, including:

1. Originating Depository Financial Institution (ODFI): Initiates ACH transactions.

2. Receiving Depository Financial Institution (RDFI): Receives the ACH requests.

3. ACH Operator: Facilitates the transmission of data files between ODFIs and RDFIs.

An ACH payment refers to electronic bank-to-bank payments made through the ACH network, eliminating the need for paper checks, cash, wire transfers, or credit card networks.

1. Setup: Obtain permission from the customer's bank account via an authorization form.

2. Initiation: Originator sends data files to the ODFI, including transaction details.

3. Batching: ODFI collects transaction files and forwards them to an ACH operator.

4. Distribution: ACH operator sends data files to the RDFI.

5. Completion: RDFI pulls funds from the customer's bank account.

1. Cost savings

2. Control over transfer parameters

3. Improved customer retention

4. Reduced stress from late payments

5. Automation of financial processes

6. Ease of payment collection

1. Direct Deposit: Used by businesses and the government to make payments to consumers, such as payroll, government benefits, and tax refunds.

2. Direct Payment: Used by individuals and organizations to electronically move funds, such as utility bill payments and personal transfers.

1. ACH Debit: Pulls funds from an account based on customer authorization.

2. ACH Credit: Pushes funds into an account, initiated by the payer.

Helios offers solutions to streamline bill payments, payroll, and payment processing, simplifying tasks in managing the hiring process and maintaining compliance.