ACH vs. EFT
If you have a global presence, electronic payments are the most secure way of ensuring you receive payment for your products. An electronic funds transfer (EFT) is a blanket term for all funds transferred electronically between a bank or financial institution and an individual or merchant. Automated Clearing House (ACH) payments fall under this blanket and are authorized by a collective network known as the National Automated Clearinghouse Association (Nacha). Nacha authorizes electronic funds to be processed between two parties in an ACH payment.
CSG Forte's unified platform provides your business with the tools to scale your payments and accept electronic ACH payments. You'll receive your money safely and swiftly thanks to our seamless technology and robust security measures. As a Nacha preferred partner, we ensure your sensitive data remains secure while our system processes the funds for you.
The Difference Between ACH and EFT
ACH is just one type of EFT payment. When you initiate an ACH transaction, the money is deposited into the recipient's account and channels through a network that authorizes the funds. A direct deposit is a sum of money paid directly into a bank account through digital channels independent of bank staff. In this sense, a direct deposit is also a type of EFT transaction. Other types of EFT payments can include wire transfers, mobile money applications and checks.
There are key differences between ACH and other EFT transactions to be aware of:
ACH transfers are settled and cleared in batches and not individually, such as with EFTs.
ACH transfers and EFTs may have varying fees and costs.
Traditional ACH transfers usually take a few business days to authorize, whereas some EFTs are cleared immediately.
How Is an EFT Payment Processed?
The manner of processing depends on the type of EFT transaction. Wire transfers channel through banks and member-based digital networks. Direct deposit payments move between two bank accounts via digital channels. ACH transfers are authorized through the Nacha network, which offers extra protection and a safer way for businesses to transact.
The Benefits of Accepting ACH Payments
Any bank transfer or check deposit comes with fees. Because ACH makes payments easy and safe, more people use it, lowering costs overall. Depositing checks can be a manual and time-consuming process. Additionally, you'll have to wait a few business days before the funds reflect in your account. Some ACH transactions save you time with same-day clearance without the need to visit the bank.