Sonder Payments is not just a credit card processor. We are specialists in all payment methods. While credit card processing is what we’re known for, we also offer e-invoicing, ACH, and other payment methods.
In this article, we’ll discuss ACH payment, what they are, and how you can accept them using your Sonder Payments membership.
What are ACH payments?
ACH payments refer to the transferring of funds from one bank account to another. Common transactions such as direct deposit, IRS payments, and account transfers all rely on ACH payments to work.
What does ACH stand for?
ACH stands for Automated Clearing House, the network that facilitates transfers between bank accounts. The network is governed by the National Automated Clearing House Association, otherwise known as NACHA.
How do ACH payments work?
When facilitating ACH transactions, each involved party must provide their bank account number and bank routing number. Note that only checking and savings accounts qualify for ACH transactions, so merchant accounts and other account types cannot be used in an ACH payment.
All ACH payments are processed by the following four parties:
- The Automatic Clearing House (ACH)
- The bank of the individual or company initiating the transaction; referred to as the Originating Depository Financial Institution (ODFI)
- The bank of the individual or company engaging with an existing transaction; referred to as the Receiving Depository Financial Institution (RDFI)
- The National Automated Clearing House Association (NACHA)
Basically, the ODFI requests funds from the RDFI (or pushes funds to the RDFI, depending on the situation) by way of the ACH. NACHA oversees this process. These transactions are batched three times per day but typically take 3-5 business days to be completed.
How do I accept ACH payments as a Sonder Payments member?
Sonder Payments members can initiate ACH payments through Virtual Terminal Plus. To create an ACH transaction, select “Process Transaction” from the menu on the left-hand side of the page. In the “Process Transaction” dropdown, you should see the option to accept a credit card, check, or cash payment. Select “Check.” Keep in mind that you will not need a physical check in hand to complete a transaction this way.
On the “Check” page, you will be asked to provide the amount of the transaction, as well as the bank account and routing numbers of the other party. Other information, such as a check number driver’s license number, or billing address will be requested, but are not necessary to complete a transaction.
Once you have filled out all the necessary details, click the blue “Submit” button at the bottom of the page. This will initiate the ACH transaction. These payments can take 3-5 business days to be completed but will be deposited directly into your company’s checking account.
If you have further questions about ACH payments, please email firstname.lastname@example.org or call us at (844) 575-3216.