How Do I Perform an ACH Transaction?
Transferring money between financial institutions used to be a chore, but electronic banking is fast and easy. The most common method of electronic transfers is by using the ACH (automated clearing house) system. Using ACH, your electronic transfer can take place in as little as a day. Once deposited, the funds are immediately available for use. An ACH can be set up to start a regular savings program or make electronic bill payments and help you manage your personal finances with ease.
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Instructions
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Contact the bank or business that you would like to pay electronically by calling its service number, which can be found on your most recent statement. If it can accept ACH funds, it will provide you a form to set up ACH from your checking or savings account. This can be done by a paper form or through a secure online system.
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Locate your ABA (routing number) and account number on your check. The ABA number is the first nine digits on the bottom left side of your check. It is usually followed by your check number and then your bank account number. These numbers are vital to establishing ACH properly. Some companies may also request a voided check attached to the ACH instructions.
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Send back the completed form. Setting up an ACH authorization should take seven to 10 business days. Once set up, you can perform systematic transfers (regular scheduled payments) or transfers on demand (custom payments on a per transfer basis). Many companies will allow you to transfer funds by phone or online.
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Tips & Warnings
When you make a transfer, allow one to three days for the payment to show in the receiving account.
References
Resources
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