ACH direct debit transfers include consumer payments on insurance premiums, mortgage loans, and other kinds of bills. Debit transfers also include new applications such as the point-of-purchase (POS) check conversion pilot program sponsored by NACHA.
Both the government and the commercial sectors use ACH payments. Businesses often use ACH online to have customers pay, rather than via Payment Cards.
The Federal Reserve Banks, through the FedACH system, are collectively the nation's largest ACH operator composed of 60% of commercial interbank ACH transactions; the remaining 40% was processed by the Electronic Payments Network (EPN), the United States' only private-sector ACH operator. Electronic Payments Network and the Federal Reserve Banks rely on each other for the processing of some Transaction Accounts when either party to the transaction is not their customer. These interoperator transactions are settled by the Federal Reserve Banks.
More Information#There might be more information for this subject on one of the following:
- Automated Clearing House
- Electronic Payments Network
- Money Transfer
- Routing Transit Number
- Trust Framework