Electronic Check Processing

Electronic Check Processing, more formally known as ACH (Automated Clearing House) is a form of electronic payment. ACH is often confused with a wire transfer because it works in a similar fashion. However, unlike a traditional wire transfer, it can be used to process higher amounts, or for small payments which may settle from 1 to 2 business days.

Hundreds of companies and banks are turning to ACH processing when they need to offer direct debit options, manage direct payroll deposit, or for converting conventional paper checks. It is also for effectively used for accepting checks on-line!

ACH transactions are resolved almost in the same way how checks are. The clearing house files all transactions daily categorized by where the check was cashed or deposited, totaling the amount, and credit or deduct all account accordingly.

AVPS can provide you with many ACH options depending on your business type and needs, providing you with the most advanced processing solutions, backed up by our years of experience!

Electronic Check / ACH process for Merchants

1. Transaction is Created: To create a transaction or in other words, to “solicit a charge from a customer”, or to “credit a customer” the merchant logs onto AVPS’s Virtual Terminal and enters customer information such as Name, Address, Amount of transaction, Routing Number, Check Number, and Bank Account Number.

2. Transaction is submitted to the Federal Reserve for Authorization: AVPS submits the transaction information to the Federal Reserve Bank which allows for the fastest processing available. All transactions are stored in a database, and will be included on your monthly statement. Note: once a transaction has been submitted, it cannot be cancelled or modified.

3. Transaction is Cleared or Rejected: As soon as the transaction has cleared, the credit amount is deposited into the merchant’s checking account. Banks may still reject a transaction even after it has been cleared, which is known as a charge back. All returns or charge backs are stored in our database, and are included in your monthly statement. AVPS can work with you to minimize costs of returns and charge backs.

Due to the nature of the Federal Reserve and the structure of the banking industry, ACH transactions cannot be completed instantly, however, a typical ACH transaction completes within 2-3 business days.