ACH guides
Plain-English answers about ACH payments, each checked against Nacha, Federal Reserve and CFPB sources.
ACH basics
What ACH is and how it works.
- What is ACH? ACH payments explained in plain English. What ACH stands for, how a payment moves from one bank to another, how long it takes and what it costs.
- ACH credit vs ACH debit What an ACH credit is, what an ACH debit is, and how the rules differ for each.
- How long does an ACH transfer take? ACH transfer times explained. When payments settle, when the money is available, and what slows a payment down.
- Same Day ACH How Same Day ACH works, with the cutoff times, the limit per payment and the fees.
- ACH limits How much you can send by ACH, who sets the limit, and the time limits that apply to returns and reversals.
- Instant ACH transfer Whether an ACH transfer can be instant, how ACH compares with RTP, FedNow and a wire, and what to ask when a provider says "instant ACH".
- International ACH transfers Whether an ACH payment can be sent to or from another country, what the IAT format is, and what to use when you need to send money abroad.
ACH on your bank account
Deposits, withdrawals, holds and the lines you see on a statement.
- Is direct deposit ACH? How direct deposit and ACH relate, how a direct deposit travels, when the money arrives, and what an employer needs to set it up.
- What an ACH deposit is What an ACH deposit means on your statement, how to find out who sent it, and when you can use the money.
- What an ACH withdrawal is What an ACH withdrawal means on your statement, how to find out who took the money, and what to do if you did not agree to it.
- What an ACH hold means ACH hold is a label banks use for an ACH payment that has not posted yet. See the two usual meanings and what to ask your bank.
- ACH number and ACH account What people mean by an ACH number and an ACH account, how the ACH number differs from your account number, and where to find both.
- ACH on a bank statement What ACH pmt, ACH xfer, ACH dep, ACH cr and other statement words mean, and which ones only your bank can explain.
- Is ACH safe? What protects an ACH payment, where the protection ends, and how to keep your account safe.
ACH compared with other ways to pay
Side-by-side comparisons.
- ACH vs wire transfer The difference between ACH and wire transfers. Speed, cost, limits, safety, and when to use each one.
- ACH vs EFT The difference between ACH and EFT, why forms often say "ACH/EFT", and where wires and card payments fit.
- ACH vs eCheck Whether an eCheck and an ACH payment are the same thing, what people mean by an "ACH check", and how a paper check is turned into an ACH payment.
- ACH vs check How an ACH payment and a paper check differ in speed, cost and risk, and how a company can turn your check into an ACH debit.
- ACH vs credit card and debit card How an ACH payment differs from a credit card or debit card payment in cost, in timing, and in the rules that apply when something goes wrong.
Sending and accepting payments
For businesses that pay or get paid by ACH.
- How to accept ACH payments as a small business ACH payment processing explained. The two ways to get set up, what you need from each customer, what it costs and how long the money takes.
- How to send an ACH payment How to make an ACH payment and how to set up ACH payments for a business, step by step.
- What information is needed for an ACH payment? The ACH details you need to send or receive a payment, and where to find them.
- ACH fees What an ACH fee is, who pays it, and what banks and processors charge.
- ACH prenote What an ACH prenote is, how it works, and when it is worth sending one.
- ACH account verification The ways to check a bank account before an ACH payment, what each one proves, and when the ACH rules ask for a check.
When something goes wrong
Returns, reversals, disputes and fraud.
- ACH reversal When an ACH payment can be reversed, who can do it, and how long they have.
- ACH return fees What an ACH return charge means, who charged it, and how to avoid it.
- How to dispute an ACH payment How an ACH dispute works, the time limits, and what an "ACH chargeback" really is.
- How to stop an unauthorized ACH withdrawal What an ACH withdrawal is, how to stop one, and how to get your money back if it was not authorized.
- Returned mobile ACH payment (CONA) What this statement line means, what CONA stands for, why the payment came back and what to do now.
- ACH fraud prevention What ACH fraud is, how the common scams work, and the steps a small business can take to prevent it.
Files and codes
For the people who build and read ACH files.
- NACHA file format What an ACH file is, how to read one, and what each line means, with a sample file.
- ACH SEC codes What PPD, CCD, WEB, TEL and the other ACH SEC codes mean, and how to pick the right one.
- ACH company ID What an ACH company ID is, where to find one, and what to do when you need one for a debit block.
Tools
Looking for a form or a code? Use the ACH form builder, the ACH return codes list or the NACHA file validator.