Note that an ACH credit needs to be pre-funded, so if you are an employer pushing funds into the account of an employee, your account needs to have funds prior to making a transfer.ĪCH credit transfers are considered to be safe and reliable, much more so than checks, which makes them a popular form of payment. What is ACH credit? An ACH credit transfer is when money is moved into your bank account, like a direct deposit.
While the differences between the two are minor, they are nevertheless important. ACH Credit vs ACH Debit: The DifferencesĪn ACH credit transaction allows you to push money online into different accounts, either into accounts you own, or into those of your friends and family.Īn ACH debit transaction, on the other hand, involves money getting pulled from your account, for instance by a company to whom you owe money. There are two main types of ACH transfers: credit and debit. ACH stands for Automated Clearing House, an electronic payment and money transfer system that allows you to move money between banks without using cash, checks, credit cards, or wire transfers. If you’ve ever transferred money, there’s a high chance you’ve used an ACH transfer.