Sunday, May 17, 2009

ACH Credit Transactions

ACH credit transactions are used everyday for any number of reasons. Whether its dividend payments from your broker or your monthly social security check ACH credit transactions are an important part of the ACH network.

ACH Credits Usage
ACH eCheck transactions happen when the Originator (usually a company) starts a transfer to move funds to a Receiver's (consumer) account. There are a number of reasons to perform an ACH Credit transaction.

  • dividend payments
  • b2b payments
  • interest payments
  • annuities disbursements
  • telephone bill initiated payments
  • pension
  • tax payments
  • refunds
  • Social Security payments
  • payroll
  • government vendor payments
Here is an example. You have a brokerage account at Bank of America and you own 1000 shares of Microsoft. As of this writing Microsoft pays a dividend. If your set up to be payed the dividend, you the Receiver would receive the dividend as an ACH credit to your account from Bank of America, the Originator.

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