Automated Clearing House (ACH) allows large businesses to make and receive payments efficiently. Ideal for large volumes of payment transaction for big businesses in batches, automated clearing house allows businesses to credit or debit accounts in bulk.
ACH is an electric network of financial institutions in the USA that transfers large volumes of credit and debit in batches. ACH is computer based and used by a range of businesses in the transfer of large sums of funds.
ACH transfers can be done via an escrow service and can be protected by a trusted third party throughout the process. Using an escrow service protects all parties from fraud and allows businesses to control the activity every step of the way.
Benefits of automated clearing house are outlined below:
Secure payments Businesses can set filters and reject payments that do not meet specific criteria, allowing accounts departments the opportunity to review each item.
Improve processing efficiencies Increased functionality allows the business to process payments and automate processes. Streamlining the accounting system and improving cash flow.
Flexibility Setting up automated clearing house allows accounts departments the flexibility of easy setup and processing of accounts and transfers, saving time and money in disbursement costs.
When it comes to transferring large sums of money for ease of transfer using an escrow service is often the quickest and easiest way of making a transfer. Escrow.com clients can enjoy a process that is protected by the Escrow.com shield and supported by a escrow agency that understands the finer details of online funds transfers.
Automated clearing house is more cost effective than wire transfers and recipients receive the funds in their account the next business day.
To calculate the automated clearing house escrow fee on Escrow.com, businesses simply add in the value of the ACH transaction and the standard fee will appear; to proceed, the finer details of the transaction are added, and the transaction is underway.
Escrow.com reduces the risk of fraud by acting as a trusted third-party that collects, holds and only disperses funds for both parties involved in the automated clearing house process.
Steps for the escrow process are outlined below:
- Buyer and Seller agree to terms
- Buyer pays Escrow.com
- Seller arranges the transaction to take place – in the case of ACH; the batches are sent
- Upon payment verification, Escrow.com verifies that the Buyer receives the transfers
- Escrow.com releases the funds to the seller
The funds are released to the seller the same or next business day after successful completion of a transaction and upon verification by Escrow.com. While it can be an additional day longer than wire transfer, using an escrow service offers a higher protection for buyers and sellers.
To find out more about automated clearing house escrow contact the team from Escrow.com or phone +1-415-801-2270 today.