Examples of ACH direct deposits include salary payments from your employer, tax refund payments from the Federal Reserve or government benefits. What is the difference between direct deposit and ACH?

ACH Operator: Either the Federal Reserve or The Clearing House batches and clears the payment. Receiving Depository Financial Institution (RDFI): The recipient’s bank receives and posts the funds.

How ACH payments work: The process every business should know ACH payments allow businesses to send and receive funds electronically, reducing reliance on paper checks and credit card fees.

In this guide, Ramp breaks down everything you need to know about ACH payments—how they work, who uses them, and why they’re an essential part of modern banking. What is the Automated Clearing ...

Because ACH transactions are automated, they minimize human errors, speed up reconciliation, and reduce operational costs compared to manual payment methods. How to send ACH payments as a business ...