ACH

What is an ACH?

In banking, ACH stands for Automated Clearing House, which is a network that coordinates electronic payments and automated money transfers.

ACH is a way to move money between banks without using paper checks, wire transfers, credit card networks, or cash.

Plastiq Connect currently supports pulling funds from a customer's bank account or sending money to a bank account.

ACH as a Receiving Method

In the context of Recipients, ACH is a type of receivingMethod where funds are sent electronically via bank transfer or direct deposits to bank accounts.

In order to ensure that your customer's Payment to an ACH-funded Recipient is successful, make sure the beneficiaryName is the name on the receiving bank account details.

To cite an example, a Recipient might do business as "Phiz Coffee Shop" (businessName), but the payout of funds may go to a bank account where "Phil Smith" is the account holder (beneficiaryName).

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Bank Account Verification

Some banks will verify if the ACH bank account details before crediting funds. Therefore, it is important to provide guidance to customers so that they understand these inputs and provide the correct beneficiaryName, accountNumber, and routingNumber when making a Payment to an ACH-funded Recipient.

Using the receivingMethod property

Try it out

You will need to select a categoryId to be used for Recipient creation.