Pay with ACH: Simple and Secure Automatic Payments

This article was co-authored by Jill Newman, CPA and by wikiHow staff writer, Jennifer Mueller, JD. Jill Newman is a Certified Public Accountant (CPA) in Ohio with over 20 years of accounting experience. She has experience working as an accountant in public accounting firms, nonprofits, and educational institutions, and has also honed her communication skills via an MA in English, writing jobs, and as a teacher. She received her CPA from the Accountancy Board of Ohio in 1994 and has a BS in Business Administration/Accounting.

There are 8 references cited in this article, which can be found at the bottom of the page.

This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources.

This article has been viewed 366,649 times.

Even if you didn't know what it was called, chances are you've actually made an ACH (Automated Clearing House) payment before—especially if you do a lot of online banking. There are 2 basic types of ACH payments: an ACH debit payment, where a person or organization "pulls" money from your account, and an ACH credit payment, where you initiate the payment and "push" it to the recipient. Read on to learn everything you need to know to make either type of ACH payment, as well as how the ACH system can benefit you.

Things You Should Know

Make ACH credit payments through the online bill pay feature at your bank or credit union.
Provide your bank account and routing number to a business to set up ACH debit payments so the business can pull money from your account.
Enjoy the peace of mind that comes from the automatic payment of your bills every month.

Method 1 of 3:

ACH Credit

If you get anxious handing around your bank account number, you might feel better using bill pay than setting up direct payments with the business.

If you don't see the business listed, call your bank's customer service number or use the help chat function on your app to find out what you need to do to pay them through the bill pay service.
It's a good idea to have a copy of your most recent bill from the business handy—all of the information you need to provide to your bank will likely be there.
Typically, you'll need to provide the name and address of the business, the name your account is in (if it's different than the name on your bank account), and your account number with the business.

Pay attention to whether the business accepts electronic payments. If they don't, you might want to set the "send" date a few days to a week in advance of the due date. Your bank will send a check on the date you select, but this will help you avoid any hiccups. [4] X Research source
You can set the frequency of payments as well. For example, you might want to make your mortgage payment on the first of each month. Typically, you can set payments up to a year in advance. [5] X Research source

Sometimes, your bank can't connect with the business to make an ACH payment and has to send a paper check instead.
If your bank sends a paper check, the money is still pulled from your account on that day, but it can take up to 5 days for your payment to reach the business. [7] X Research source

Advertisement Method 2 of 3:

ACH Debit

The routing number isn't private information like your account number is, so it should be really easy to find.
If you're having trouble finding your personal account number, you might need to call your bank or go into a branch in person.

In addition to your account number and your bank's routing number, provide your name as it is listed on your bank account.

If your bill is a set amount every month, that'll be your payment amount.
If you're setting an automatic payment for a bill that varies, such as a utility bill, you'll typically have options to set a maximum amount or pay whatever balance is due.
The business will typically send you a notification a week or two before the payment date so you'll know the amount and can plan accordingly.

Sometimes if an ACH payment is returned, the business will just keep resubmitting it, which means you could end up racking up a lot of fees if you don't correct the problem quickly.

If the test transaction fails, the business will likely contact you to provide further information. It could be that you entered your account or routing number incorrectly.

Advertisement Method 3 of 3:

Benefits of ACH Payments

Many businesses bake the surcharges into their prices, so you might not notice a difference in cost.
If you set up an ACH payment with a business that tacks on a surcharge or "convenience fee" for using a debit or credit card you'll save a few bucks each month—and that adds up!
Some businesses also offer a discount if you sign up for autopay. Again, it's typically only a few bucks, but it adds up over time. [14] X Research source
If you own a business and want to accept ACH payments, you'll need to sign up for a payment processing service, such as Square.

Even better, if you use bill pay through your bank to set up an ACH credit payment, you never even have to give your bank account information to the business. [16] X Trustworthy Source US Consumer Financial Protection Bureau U.S. government agency for protecting consumers in the financial sector Go to source

The ACH network doesn't settle transactions on weekends or holidays, but since standard industry practice is that a due date that falls on a weekend or holiday is moved to the next business day, this shouldn't really affect you.

Be careful about your budget and make sure you check your account balance regularly—it can help you avoid costly overdrafts and fees if you don't have enough to cover an automatic payment. [18] X Trustworthy Source US Consumer Financial Protection Bureau U.S. government agency for protecting consumers in the financial sector Go to source

Expert Q&A

Do ACH transfers include mobile and email deposits? Jill Newman, CPA
Financial Advisor

Jill Newman is a Certified Public Accountant (CPA) in Ohio with over 20 years of accounting experience. She has experience working as an accountant in public accounting firms, nonprofits, and educational institutions, and has also honed her communication skills via an MA in English, writing jobs, and as a teacher. She received her CPA from the Accountancy Board of Ohio in 1994 and has a BS in Business Administration/Accounting.

Financial Advisor Expert Answer

A mobile deposit is generated from a picture you take on your phone and send to your bank. Then the bank processes the deposit as if it had the physical check. It just uses the picture of the check instead. So this would follow the same check-clearing protocol as a regular check deposit.

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow

Where can I get a sample form needed to set up an ACH payment from a customer's account? Jill Newman, CPA
Financial Advisor

Financial Advisor Expert Answer

The information needed for setting up an ACH payment would be found at your bank or bank's website. You will need the name on the account and the customer's routing and account numbers.

Ask a Question 200 characters left Include your email address to get a message when this question is answered. Advertisement

Tips

Submit a Tip All tip submissions are carefully reviewed before being published Please provide your name and last initial Thanks for submitting a tip for review!