What is ACH?

What is ACH?

If there's one thing you don't want to be confused about, it's your money! Yet finance is often a confusing corner of the worldit's tough to keep up with all the terms, systems, and procedures you have to understand in order to stay on top of your wallet. You may have heard the term ACH before, used in reference to payments you make. If you're unfamiliar with it, we'll help explain just what is ACH and how it can make your life financially easier.

What Is ACH? (And How Do I Use It?)

What ACH is:

ACH stands for automated clearing house. It's a system that automatically and electronically takes care of your payment during its clearingthe time between when it's with you and when it reaches whom you're paying. This is similar to a wire transfer, but ACH is usually more convenient and has smaller fees.


ACH payments are a great way for your to pay your regular bills (or, if you're a business, to set up direct deposit paychecks for employees), as it's faster than paper checks and you don't have to worry about it once it's set up! Which leads us to . . .


How you use ACH:

If you're interested in taking advantage of ACH payments, the first thing you'll want to do is contact your financial institution. They'll work with you to set up online payments and make sure your recipientbanks or credit unions, credit card companies, other businesses, or individualscan receive ACH payments from your bank (most recipients can, but it's always good to check!).

You'll also set up the parameters for your transactions. This will include the timing of your transaction(s)when you want your payment to be sent, and, if it's a recurring payment, how often it should occuras well as the amount of the transaction. You can opt to pay a specific recurring amount, or each payment's balance due or minimum payment.


Once it's set up, you don't have to worry about future payments! You can choose to be notified electronically when you have a new bill or when a payment is sent out (which is usually a good choice). It's also important to remember that when you're first setting up, it will take a period of time before automation takes effect, so you should be prepared to pay a round of bills as you normally would. And don't worryyour bank or credit union will be with you the whole way!


If you're still struggling with understanding ACH, that's OK! Give us a callwe're happy to help.




Are you looking for help with recurring payments? If you live or work in southwest Missouri, check out BluCurrent Credit Union. With our unbeatable loan options, 6,800 shared branches across the country, and fantastic customer service, we might be the perfect financial service for you. In addition to our three locations (two in Springfield and one in Nixa), we also offer online and mobile banking for your convenience. Plus, we provide nationwide ATM fee refunds with our checking accounts! To learn more about our services and benefits, please stop by one of our branches or explore our website. We would be happy to help set up ACH payments.

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