What are ACH direct debits and how do they work? What are ACH direct debits and how do they work?

What are ACH direct debits and how do they work?

ACH (Automated Clearing House) is a U.S. financial network used for electronic payments and money transfers, that allows Capchase to collect funds from its customers’ US bank accounts. To process ACH debits, it's necessary that customers share their bank account information and authorize Capchase to debit their accounts.

Financial institutions must process ACH debit transactions that are submitted before a specified cut-off time by the next business day. ACH payments are handled in batches, and you can expect the average processing time to be 2-3 business days (Monday to Friday, excluding holidays).

Same-day ACH processing is growing in order to solve the slower service of the standard ACH system.

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