What is ACH Origination and is It Easy to Use?

You have probably heard the term ACH, but what does it mean? Why does it matter? Well, ACH stands for ‘Automated Clearing House and is a very useful tool for both consumers and businesses alike. It is an electronic financial transaction network in the U.S. where large volumes of credit and debit transactions are processed by ACH in batches. These transactions include payroll, vendor payments and direct deposits. 

An ACH origination begins when a customer allows an originating institution, company or other authorized originator to debit directly from the customer’s checking or saving account to make a payment.

When you are ready to make an ACH payment, contact your financial institution to get details about online fund transfers. Then find out if your recipient can receive ACH credit payments from you.

Ideally, a transaction should take only one business day; however, some banks can take up to three days to complete the transaction. It is also important to ask about any fees that may or may not be charged. (There are no fees for using ACH at First Basin by the way).

This is not to be confused with a wire transfer which is similar to an ACH except an ACH is done in a batch process. ACH transfers usually cost less than a wire transfer because they are done as a batch rather than individually.

First Basin Credit Union has a host of very easy to use online services which include ACH and more. You will be able to appreciate the convenience of online banking or come by one of our eight neighborhood locations in Odessa, Midland, Andrews or Lubbock.