What are checking account transactions?

These are payments that your customer makes using their checking account. The customer can do this by providing you with the account number and transit number of their checking account.

The Automated Clearing House (ACH) network processes checking account payments and electronically sends funds from one bank account to another. When your customer uses their checking account to make a payment, the ACH confirms that your customer’s bank account has enough funds to pay for the transaction.

How do checking account payments work?

Checking account transactions do not clear instantly because there are several steps for processing checking account payments. The following diagram describes what happens when your customer uses their checking account to pay for goods or services:

A flowchart that shows the steps of a checking account payment.

For more information about ACH return codes, visit What are ACH returns?

Why should I accept checking account payments?

  • They are faster than paper checks
  • You can use them for recurring billing
  • You can track the payment

Modified on: Wed, 29 May, 2019 at 9:49 AM