The Wonder That Is ACH

by Heather Adams 14. August 2012

ACH payments are used by most people in the world today, even if they aren’t aware of it! This amazing technology is used to pay bills, transfer money between accounts and receive income; yet so few people actually know what it is or how it works. Maybe that’s a testament to just how common it is - people don’t even realize they are using it! So what is ACH? ACH stands for Automated Clearing House, and loosely defined, it is the electronic delivery of money in and out of your account.

This October marks my 20th year in the banking industry, and while ACH was available back in 1992, writing a paper check still dominated. In 1997, someone told me, “Paper checks will be obsolete by 2020.” Now here we are less than eight years away, and while I don’t believe checks will disappear completely, I don’t believe he was too far off the mark.

Remember when you bought lunch for a friend or paid his way into the movies because he “forgot” to bring his wallet? Remember hunting that person down to get the money back? Well, people may still “forget” their wallets, but no one is EVER without their phone, right?? With ACH virtually at your fingertips, those perpetually “forgetful” people can pay you back with a simple person-to-person payment service, which they can easily download as a smartphone App! Sound crazy? That’s the wonderful world of technology.

I can’t help feeling a little sad and OLD knowing that my 12-year-old nephew may never know the joy of feeling like a real grown up when he writes his first check, but I have to admit, it’s exciting to have been part of the banking evolution over the last two decades. ACH payments have tremendously changed the way we bank, and I’m eager to find out what will be next!

Find out how your business can take advantage of our ACH services.

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