What are ACH direct debits and how do they work?

ACH (Automated Clearing House) is a U.S. financial network used for electronic payments and money transfers, enabling Capchase to collect funds from its customers’ U.S. bank accounts. To process ACH debits, customers must share their bank account information and authorize Capchase to debit their accounts by whitelisting Capchase's codes.

Financial institutions must process ACH debit transactions that are submitted before a specified cut-off time by the next business day. ACH payments are processed in batches, and you can expect an average processing time of 2-3 business days (Monday to Friday, excluding holidays).

Same-day ACH processing is growing to address the slower service of the standard ACH system.